Abu Dhabi is the biggest of all seven emirates in UAE as well as the capital of the country. The population of the city is about 1.3 million out of 3.8 million of UAE and also covers the 87% of the entire area. The city has a booming retail real estate market for residential buildings, offices other tourism places. The real estate market condition in the United Arab Emirates is, as a whole, facing a boom. It has the most secure and profitable market in whole Gulf region. Abu Dhabi is currently enjoying real estate investment from all over the world. The Abu Dhabi market possesses number of opportunities in the real state sector. It has been difficult for the authorities to meet the ever rising demand for real estate projects in the city.This paper presents an overview of economy, demographics and real estate of the retail market growth in the UAE region. It primarily illuminates the major retail real estate markets of Abu Dhabi, reflects on existing and future demand and supply, and provides recommendation for stabilization in the sector.UAE came into being as a result of alliance of seven emirates and Abu Dhabi was made the capital of the state. Abu Dhabi has supremacy in almost all fields i.e. economically and geographically etc. Abu Dhabi covers approximately 87% of total UAE area. According to a census that took place in 2005 the official population of UAE was 3.8 million approximately while the Abu Dhabi population was around 1.3 million. 300,000 people were those non-nationals who did not become a part of the census (Emirates: Abu Dhabi-Country Profile).
UAE is one of largest oil and gas producing countries of the World. It has 9% of oil reserves and approximately 5% of gas reserves. Abu Dhabi has the predominant share in these reserves i.e. 95% and 92% of oil and gas reserves. Like almost every Middle East country natural resources are the back bone of economy of UAE. The IMF report says that the GDP group of UAE is around 12% in 2005 and expectedly more in near future (Emirates: Abu Dhabi-Country Profile).
The government of UAE, however, does not want to rely completely on oil and gas due to the fluctuation in its prices. It has been focusing on minimizing the country's economic reliance on oil and gas exports. With the government efforts and local and foreign investment in real state retail, tourism and industry the 64% of GDP now consists of non oil and gas sector. The government put huge investment and established Abu Dhabi Tourism Authority (ADTA) and that has been handled by the Tourism and Development Investment Company (TDIC) to promote tourism and real estate sector. Hence, the economy is moving towards the right dimension in the whole UAE and especially Abu Dhabi, which is undergoing rapid economic growth due to huge foreign and local investment in the country from banks and financial institutions (Emirates: Abu Dhabi-Country Profile). .
The current boom in the real state market of the United Arab Emirates took place over the last few years and has made a significant difference to the economy. The ratio of real state was 2.5% of the economy which has reached to10.5% (Walters, Kadragic and Walters 78). The real estate is one of those sectors contributing heavily to the overall economy. This huge investment reflects the government interest in the development of real estate market. The whole Gulf region is showing its keen interest in developing its economy while supporting the real estate sector.
Abu Dhabi attracts abounding investment from the region in its real estate market. Al-Futtaim is going to launch project of $9.5 billion. That would take approximately 10 years to be done. The project includes residential, commercial, hotel and several office towers (Woods)
REAL ESTATE RETAIL MARKET IN ABU DHABI
. Abu Dhabi is a different market than any other market in the region for instance Dubai, Sharjah etc. The city is ideal because of its property market and pricing that also