CBRE managing director predicts that the Eurozone crisis will send institutions’ money east, towards the Middle East, as Western markets continue to be undermined
The Middle East is set to welcome an influx of money from European investors in 2013, as key opportunities in their home markets continue to flag.
Euros in their “hundreds and millions” will flood Middle East markets, most likely via Dubai, as the Eurozone crisis continues to undermine western markets, according the managing director of CBRE, Nick Maclean
“There are several institutions looking cautiously to deploy hundreds of millions of Euros here and their first point of entry will most certainly be Dubai,” Maclean said, commenting the amounts were “significant”.
The entire world economy has felt the effects of a potential third Greek bailout and recently it has been estimated that as much as €700m has been withdrawn from Greek banks ahead of the elections on Sunday.
Earlier this week Spanish default insurance costs reached a record high and it was announced that German consumer prices fell 0.2% in May, taking annual inflation to its lowest rate since December 2010, at 1.9%.
“Europeans are looking again because they can’t get the kinds of returns they can get at home, they have to come to new markets and therefore we are going to see some activity from European investors into the UAE for the first time since I have lived here, during the course of next year,” Maclean added.