JEDDAH: Economic growth in the MENA region is forecast to outpace the global average in 2011, signaling the property sector is ripe for investment, DAMAC Properties, Middle East's largest private developer, said. The International Monetary Fund has also predicted that the regional GDP will expand 5.1 percent next year, higher than the forecast global average of just 4.2 percent. "The MENA region will be a powerhouse of the global economy in 2011 and DAMAC Properties is well positioned to take full advantage of the upturn" said Ziad El Chaar, managing director of DAMAC. The property sectors in Saudi Arabia, Lebanon and Egypt are forecast to report double-digit growth in 2011. Property prices in some parts of Saudi Arabia surged as much as 40 percent in the second half of 2010, Banque Saudi Fransi reported earlier, and will likely continue to appreciate in the New Year. Property prices in Egypt grew 10 percent this year, Global Property Guide said, with similar growth forecast for next year. "There are strong economic fundamentals underpinning the case for property prices to rise across the MENA region in 2011." Lebanon's Director General of the Economy Ministry Fuad Fleifel forecast that property prices in Beirut would rise another 15 percent in 2011. DAMAC is expecting a lot of activity in 2011, as investors rush to buy real estate to capitalize on the predicted upswing. Dubai's property market is also expected to revive next year, analysts at Credit Suisse said. Credit Suisse is forecasting the UAE's GDP to rise 4.7 percent next year, outpacing the global average. The region is also getting a boost from Qatar's successful 2022 World Cup bid, with Shuaa Capital predicting Qatar may spend close to $90 billion on housing and infrastructure in the lead up to the tournament.
