ALEC CEO: Lifting of Iran sanctions to boost investment in Dubai
Tax-free environment and historic ties to prove attractive, says Kez Taylor
The lifting of sanctions on Iran will give a boost to the Dubai real estate and construction sector, a leading figure in the industry has said.
Kez Taylor, CEO of Al Jaber LEGT Engineering and Contracting (ALEC), said that dropping sanctions on Iran would have a positive impact as investors in that market would be looking for opportunities in Dubai.
“There’s a lot of liquidity in that market, and that’s going to be able to be invested in certain regions. They’re so close to us and there are historical ties. It’s a tax-free environment in the UAE, and the kinds of returns you get here are probably higher than what you’re going to get anywhere else in the world, and it’s still a growing market,” he told MEConstructionNews.com.
“In the UAE, the population is growing by about 100,000 a year, with that kind of positive growth comes the demand,” he added.
Western sanctions on Iran are likely to be eased over the next six months following a deal between the Islamic republic and key global powers. The lifting of sanctions would allow, for example, an American firm with operations in Dubai to do business with Iranian companies.
David Richter, the CEO of the international consultancy Hill International, said earlier this year that the global construction industry was keeping a close eye on developments with Iran.
“We’ve already had internal conversations about both Iran and Cuba, as markets that are going to open up, and we’re ideally positioned to enter into both markets,” said Richter at the time.
Tom Bower, managing director of WSP | Parsons Brinckerhoff Middle East, said that Iran was certainly of interest to construction firms in the GCC.
“With the changes that are happening with Iran, that’s going to be an opportunity… Previously, due to the various sanctions that have been in place, we’ve not been able to operate in Iran, so we’re going to be watching it closely to see what happens and how that market develops,” he said earlier this year.
Kez Taylor said that Dubai would continue to attract investment due to the scale of the projects being built in the city.
“As long as the economy keeps growing and the population growth keeps going the way people are forecasting, then this is a very positive place (to invest in). Especially Dubai, it’s becoming a very desirable place. It transforms very rapidly and it’s getting better and better.
“When you create a city that’s desirable like this, then people want to set up here. You’ve got a fantastic infrastructure over here, your healthcare is getting better, your education for your kids is getting better, there’s business opportunities, there’s challenge,” he concluded.
