Middle East developers target China's new super-rich
Cityscape - the world’s biggest B2B real estate event brand returns to Asian giant which creates on average one billionaire every two weeks
Middle East property firms are targeting China's rapidly-growing club of super-rich investors with their iconic developments as the Asian giant streaks ahead of developed economies in the world wealth rankings.
The Middle East's Meydan, ETA Star and the Fortune Group are among several regional companies that have chosen to showcase their mega developments at Cityscape China 2008, which takes place at the Shanghai New International Expo Centre in Pudong from 25 to 27 June 2008.
A rising star in terms of wealth creation, China's transition to a market-oriented economy is producing a stream of ‘nouveau riche’ and China's millionaires club is expanding rapidly. Five years ago, there were no Chinese billionaires. Today, there are 146, or put another way, an average of two per month.
In addition, with the Chinese economy surging more than 10% annually over the past five years, the country boasted 345,000 dollar millionaires by the end of 2006. Some 5,000 mainland Chinese had assets exceeding $30 million, accounting for a third of Asia-Pacific's super-rich.
Meanwhile, a Household Wealth Index from Barclays Wealth and the Economist Intelligence Unit shows China accelerating from seventh to third place in the overall world wealth rankings within the next ten years. With only the US and Japan in front, China will leapfrog countries such as the UK, Germany and France in the rankings.
"Investment is increasingly flowing from China to the Middle East," said Graham Wood, Exhibition Director of Cityscape China. "Chinese investment in the United Arab Emirates alone currently stands at $300 million. With this in mind, we know that Cityscape China 2008 will bring enthusiastic Chinese investors eager to interact with global developers.”
Meydan LLC, one of the event's platinum sponsors, will highlight the UAE's new iconic horseracing development, which will span 76 million square feet accommodating 55,000 to 60,000 spectators as well as state-of-the-art dirt and turf tracks. This project will also include five-star hotels, a world-class golf course, ten restaurants, the Meydan Museum and gallery and the Dubai Racing Club offices.
Commenting on the project prior to Cityscape China, Dubai Racing Club Vice Chairman Saeed Al Tayer said: “We are proud to reveal the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum We wanted to develop a world class facility and I cannot think of any other racecourse in the world that will rival it. I believe Meydan is not just for Dubai, but it’s for the whole world.”
The Fortune Group, with $1.9 billion in investments in Dubai, will be showcasing Burj Al Alam at Business Bay in Dubai. Hailed as the world's tallest commercial tower, Burj Al Alam will house a shopping arcade, health and fitness centre and a rooftop spa
ETA Star Properties will feature the company's $1.08 billion green project - Verde Residences and Offices. The buildings are designed to maximise the use of wind, natural light, geothermal mass, recyclable construction material along with energy- efficient systems and technologies.
"China is the most talked about economy in the world. As one of the fastest growing property developers in the Middle East and South Asia, it is only natural that we expand to new territories including China," said Abid Junaid, Executive Director, ETA Star Properties.
Projects by real estate developers from more than 15 countries will be on display at Cityscape China – an extension of the phenomenally successful Cityscape Dubai, organised by IIR Middle East, which is the world's biggest business-to-business real estate event brand.