Dimah Capital organized its first Real Estate Forum under the title of ‘Economic Outlook 2023
Dimah Capital held its first Real Estate Forum, titled "Economic Outlook 2023", with a global presence of renowned experts and investors. At the beginning of the forum, Dimah Capital's CEO, Hussam Al Muzaiel, mentioned that the forum aims to attract professionals in various fields of the global real estate market, both structurally and economically, and shed light on the expected future trends of global markets, especially in the United States and the United Kingdom.
Al Muzaiel stated that Dimah Capital sought to engage all interested parties in the real estate sector, including investors and experts, to exchange opinions and build strategic relationships that help understand the trends of the real estate market and identify investment opportunities to address market challenges.
In response to a question about the global crisis's impact on the real estate market, he explained that the global economy is currently experiencing an unprecedented state of acceleration and changes never seen before. Experts' discussions indicate that the global economy is facing a slowdown in growth, which may have implications for the overall US and European real estate market.
Al Muzaiel expressed optimism about improving conditions by the end of the current year and the beginning of 2024, expecting the market to start recovering. He emphasized the importance seizing real estate and investment opportunities to benefit from the expected improvement. Regarding Dimah Capital's role in providing investment opportunities to its clients, he highlighted the company's presence through a professional capable team and its subsidiaries that aims to capture fruitful investment opportunities. He emphasized that the company's structure aligns with Islamic Sharia principles and aims to achieve expected returns for investors.
During the forum, Dr. Dennis Schoenmaker, Executive Director at CBRE, spoke about the global economy and future expectations, stating that recent news has been mixed. He noted that China is recovering at a higher rate than expected, with a GDP growth rate of around 4.5%, which provides good support for the global economy, especially with the decrease in shipping costs, facilitating supply chains and supporting global demand.
In addition, Ed Peters, Tax Partner at BDO, discussed changing tax regulations in Europe and the UK, highlighting increased movement in tax authority structures. Peters presented some available opportunities for Gulf investors through three systems, starting with the first system that focuses on tax exemptions. This system is commonly used by real estate investors in the Middle East investing in the UK, and it is beneficial for real estate funds and similar entities, offering two key advantages: higher sales prices and no exit tax until cash distributions are made to investors, particularly benefiting Kuwaiti investors under the current tax treaty.
Michael George, Managing Director of Capital Markets at JLL, highlighted the developments in the US real estate investment market, discussing liquidity, pricing, and the impact of economic conditions on sectors such as warehouses and residential apartments. He emphasized the continuous rise in interest rates and their effect on real estate, which always requires bank financing.
Waleed Mohammed, Executive Vice President of Alternative Investments at Dimah Capital, stated that the first panel discussion aimed to connect recent global events with current developments in local and global markets to benefit Kuwaiti investors. The panel focused on the European and the UK real estate markets, discussing key aspects and the impact of economic conditions on sectors such as warehouses and residential apartments, considering the continuous rise in interest rates. In the second panel session, speakers discussed the US real estate market, addressing interest rates, the banking sector, and the trends of the US economy based on Federal Reserve decisions. The session examined the effects of interest rate increases and the collapse of three major banks due to interest rate differentials provided by banks. This situation affected the operational environment of those properties. The session highlighted ongoing efforts in the US market to reach an agreement between banks and real estate entities to address inflationary equations.