Competition among Gulf states to attract real-estate investments

A report conducted by the information sector of General Secretariat of the Gulf Cooperation Council (GCC) said only five thousand Saudis bought housing units in other GCC countries during 2013.
UAE was regarded as the best country to attract real-estate investments from others Gulf estates, with Saudi Arabia ranking fourth.
Meanwhile, expats in the Kingdom have started investing in real estate in Gulf countries to obtain long-term residence permits, which will enable them to visit or live in these countries.
According to experts, real estate investments by expats in Dubai and Abu Dhabi have exceeded SR10 billion.
Qatar allowed expats in 2006 to buy housing units. In return, Doha would give expats access to facilities such as long-term residence permits.
Expats in Saudi Arabia who own houses in other Gulf countries are mainly Palestinians, Indians, Lebanese, Syrians and Egyptians. A number of them want to ensure their future through buying houses in Gulf countries.
“Gulf countries are bound to face cultural problems due to the naturalization of a large number of foreigners. This will change their demographic map,” said Tala Samarqandi, a member of the real estate committee at the Jeddah Chamber of Commerce and Industry (JCCI).
Dubai is the biggest real estate market for Gulf residents. Around 24 percent of the buyers are from India, 21 percent are British and 12 percent are Pakistani.
According to a study of the Gulf Center for Development Policy in Kuwait, linking the sale of real estate to granting permanent residence outside the system of work visas for expats in some Gulf countries could create cultural problems.
According to Saudi rules, an expat licensed to practice a business or a profession is entitled to own property to live in or to practice their business or profession.
They can also buy homes to accommodate employees.
However, expats in the Kingdom said there is no system of obtaining long-term residence permits tied to buying housing units here.
“Last month, I bought an apartment in Bahrain for around SR500, 000,” said Abdul Karim Ramadan, a construction engineer.
“I would like to take up permanent residence there, so my stay in the Gulf region is guaranteed.
“I am working in Saudi Arabia but I cannot buy a house there because I will not get a permanent iqama,” he added.