A look at Qatar's Transformation, The Real Estate Perspective ... GCC states on global stage; Opportunity for emerging countries to enter new markets and geographies...

1. Qatar The Gamble or Destiny
 ASA February 2014

2. Qatar’s A Gamble OR A Destiny
The Property Perspective
Opportunities

3. From US Credit Crunch to Global Economic Crisis

4. Economic Crisis Synopsis
IMMEDIATE IMPACT
LONG TERM IMPLICATIONS
 Fluctuation in commodity prices
 Fears of a significant global recession
 Nationalization of Banks
 Consumer confidence affected
 Stock markets are taking a plunge
 Investor pessimism
 Sharp increase in corporate defaults
 Weakening of the traditional western
corporate leaders
 Shift from Mature to Emerging
markets
 Stronger emerging market giants from
the Middle East and BRIC countries
 Increasing role for Gulf states on
global stage
 Opportunity for emerging countries to
enter new markets and geographies
 Move to polarized global economy

5. Impact of Financial Crisis on Real Estate Markets
Pre-Crisis
Robust Demand
Rents Rising
Increasingly International Market
Cheap & Plentiful Debt
More Buyers than Sellers
Cap Rates Falling
Prime = Secondary
Traded Volumes High
Post-Crisis

6. Qatar , Middle East Less Impacted
World Economic Outlook Q1, 2014
12
GDP Growth (%)
10
8
6
4
2
0
2011
2012
2013
World
Source: IMF, Word Economic Outlook, March 2014
Advanced economies
2014
Middle East
2015
Qatar

7. Stages in Market Maturity
Transparency
Required Returns
(Hurdle Rates)
Market Volatility
Catalyst
Time
Maturing
Growth
Cairo
Muscat
Doha
Abu Dhabi
Source:– World Winning Cities 2014
Dubai
Core
Moscow
Shanghai
London
New York

8. MENA Transparency
Highly Transparent
Tier 1
Transparent
Tier 2
Semi-Transparent
Tier 3
Low-Transparent
Tier 4
Opaque
Tier 5
Dubai, Qatar
Bahrain
Abu Dhabi
Saudi Arabia, Morocco, Egypt
Oman, Kuwait
Pakistan, UAE (Other Emirates)
Sudan, Algeria, Syria

9. Investor Sentiment – Global
Asia Pacific
26%
North America
10%
South America
8%
Eastern Europe
3%
Western Europe
7%
Africa
10%
 Middle East still seen as strongest
performing market globally (36%) although
this has fallen from 56% back in September
 Asia Pacific is seen as second strongest increased from 20% since last survey
 Improvement in expected performance in
North America from 5% since last survey
Middle East
36%
 Improvement in expected performance in
Western Europe from 2% since last survey
Source: Jones Lang LaSalle ISS, March 2014

10. Investor Sentiment - MENA
Saudi Arabia offers strong potential –
large and rapidly growing market
continues to open up and offer new
opportunities
Bahrain
6%
North Africa
4%
Levant
5%
UAE - Abu Dhabi
26%
Kuw ait
2%
Oman
2%
Qatar
19%
Qatar expected to offer strong
performance building upon its reputation
as the next emerging GCC real estate
market and its gas wealth
Investors still remain bullish towards the
UAE, especially Abu Dhabi
UAE - Dubai
11%
Source: Jones Lang LaSalle ISS, March 2014
Saudi Arabia
25%

11. Key Strengths of Qatar
1
Growing population
2
Opportunity for infrastructure led investment
3
Strong government support
4
Highest GDP per capita in the world
5
3
Ample off-balance sheet income to support growth
6
4
Gas based economy (less fluctuating prices)
7
3
Regional influence
4

12. Qatar – World’s Highest GDP
 Domestic and regional infrastructure
investment
 Securing the future through an active
global agenda
Source: IMF January 2014

13. Growth Estimates (2010 - 2014)
Source: Various

14. Requirements to Recovery
Dec 2013
May 2014
Dec 2013 May 2014
Macro Economic
Real Estate
Global economic stability
Increased occupier demand
Recovery in oil prices
Reduction of Future supply
pipeline
Stability in employment levels
Stabilisation of pricing levels
Financial / Liquidity
Increasing transaction levels
Decline in cost of capital (interest rates)
Consolidation of real estate
participants
Recovery in equity markets
Implementation of new
investment paradigm
Recapitalization of banking sector
Supporting Factors
Increased funding available to real
estate sector
Recovery in tourism
Improved brand perception
Required
Underway
Improvement in corporate
governance
Achieved
Concerted government action
Source: Jones Lang LaSalle

15. Emerging World Winning Cities
Moscow
Prague
Budapest
Warsaw
Beijing
Doha
Mexico City
Abu Dhabi
Delhi
Shanghai
Mumbai
Bangkok
Bangalore
Kuala Lumpur
Sao Paulo
Johannesburg
Buenos Aires
Santiago
Source: World Winning Cities, 2014

16. Doha: A Destination in the Making
1.
Performance
2.
Planning
3.
Population
4.
Place Making
5.
Power
6.
People
7.
Purity
8.
Process
9.
Property
10. Physical
Source: World Winning Cities, 2014

17. Thank You