The GCC real estate sector witnessed incredible growth during the last few years, sustained by strong oil prices and the beneficial effects of globalisation. One of the fastest developing real estate sectors in the world, as recently reported in Business Maktoob Commercial Journal, it has posted a cumulative growth of 565% since 2000. One reason for this remarkable growth is that GCC countries have taken pro-active measures to further liberalise their economies by diversifying and encouraging foreign investment into the region to reduce their dependence on the hydro-carbon sector.

However, the volatility witnessed in the oil market over the past year combined with the continued unraveling of the global credit crisis, is upsetting many equations. After scaling a record high of around US$ 145 per barrel during mid-2008, oil prices fell sharply towards the end of 2008 to trade in the high US$ 30s per barrel. The OPEC reference basket average price for the full year 2008, was around US$ 88 per barrel. While various forecasts are available, a Department of Energy publication of the US government indicates the weighted average reference price for US imported low-sulphur light crude for 2009 would be around US$ 60 per barrel. The adverse turnaround in the global economies, and oil prices, has taken a toll on GCC economies with various analyst predictions pointing to 2009 not offering significant hope for a quick global recovery. With capital investments and current account surpluses likely to witness a sharp deceleration in 2009 due to the global meltdown, the outlook for maintaining recent real economic growth in GCC countries, appears unlikely. Interestingly, a January 2009 IMF update projects Middle East economies, which includes the GCC countries, to grow at 3.9% in 2009 as against a negative growth in nearly the entire developed world.

Despite the projected slowdown, the regional real estate sector continues to see a steady flow of developments, with reputed trade journals estimating that about US$ 2.39 trillion worth of projects are in the pipeline. This indicates continued strong investor interest and trust in the region, despite some well-publicised set-backs in some parts of the region, notably in Dubai. With anticipated population growth placing further demands for infrastructure and real estate development projects, regional governments have been quick to take pro-active initiatives to soften the impact of the credit crunch by ensuring liquidity and supporting major developments. In addition to the confidence provided to the markets by regional governments, I believe that increased support to infrastructure and development projects by the governments through an appropriate fiscal stance or a stimulus, could provide a further impetus to ward off any  ill-effects of an economic contagion in the coming year. Based on the observed policy measures of regional governments to date, it is more than likely that the GCC real estate sector will continue to attract investments and remain the busiest property market across the world.

he scenario of realty markets continuing to hold the attention of investors and purchasers is especially true of Bahrain. The Kingdom is seeing some landmark developments, especially along its extensive waterfront, that is changing the face of its real estate sector, and its economy. The preference for property acquisition in the Kingdom over other developments in the region, is due to its continued price advantage in various segments of its realty sector.

The Bahrain International Property Exhibition (BIPEX) has been tracing the remarkable real estate developments in the Kingdom, and the growth of the real estate sector across the region, over the five years since its inception. BIPEX 2008 closed with record numbers of footfalls, value of properties showcased, coverage of exhibition space, and number of exhibitors. BIPEX 2009, the sixth edition of the show, will be no exception, highlighting the most significant infrastructure and real estate projects in the region, and providing a free flow of information on the current status of the sector. It is the ideal platform for prospective developers, financiers and investors to exchange ideas, analyse and discuss issues of relevance to the sector, make course corrections and plan for the future. BIPEX, the only major non-profit property exhibition event in Bahrain, with its strong pedigree, aims to further consolidate the industry-network, while allowing the public an opportunity to be a part of the development story of the Kingdom.

I take this opportunity to extend my invitation to all stakeholders in the real estate industry – investors, developers, clients and the public – to participate in BIPEX 2009 and make a significant contribution in charting the course of the industry for the future, both regionally and globally.