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BIPEX Remains Unaffected Despite Global Financial Crises

MANAMA — The on-going Global financial crises will not hamper the expected success of the annual Bahrain International Property Exhibition 2008 (BIPEX) that opens today.

More than 12000 individuals are expected to attend the three-day conference, at the Bahrain International Conventions Center, that has attracted more than 70 companies, according to the Organiser and President of Bahrain Society for Engineers (BES), Abdulmajeed Al Ghasab.

Speaking to Khaleej Times, Al Ghasab predicts that although property sectors in the Arab world might be affected by the global financial turmoil, Bahrain’s real-estate industry however remain firm and steady due to the high demands on limited properties, because of the Kingdom’s small size.

“Bahrain was the first nation in the region to grant property buyers the right of freehold ownership,” said Al Gassab. He revealed that an estimated $15 billion worth of projects are currently underway, with 90 per cent of those investing in properties in Bahrain are locals, although non-nationals especially from other Gulf region have also shown interest.

The government has been monitoring banks and financial operations to minimise the affects of the crises on the economy, he said.

Al Gassab says that BIPEX will be the best opportunities for bodies concerned to come together and discuss the issue, adding that the government’s liberal policies and expatriate friendly investment environment will ensure the boom continues.

‘The region is today considered a safe haven for international investors seeking to shield themselves from the global financial downswing in the equities markets and escape the recessionary trend in the major world economies,’ he revealed.

The event organised under the patronage of Shaikh Khalid bin Abdullah Al Khalifa, Minister of the Prime Minister’s Court, is now running for the fifth consecutive year, rising to an international stature, since its inception. The exhibition space has been increased this year, following demands from participants and is expected to exceed last year’s record, which was over $38 billion worth of real estate assets.

Director of Conferences at the BSE, Jameel Khalaf Al Alawi told Khaleej Times that BIPEX comes to meet changes Gulf region has been witnessing at the macroeconomic level, amidst diversifying reliance on oil and gas exports, that also contributes to the economic growth.

“The average annual growth rate of the non-oil and gas GDP over the past 10 years ranged between 9 and 10 per cent, with the trend expected to continue up to 2012,” said Al Alawi.

Some of the factors that has fuelled economic growth includes increased population growth, huge capital inflows, high liquidity due to consistently high oil prices and asset creation by financial institutions, said Al Alawi.

“BIPEX is an appropriate forum that provides vital information to investors in the real estate industry, both within the region as well as non-GCC countries,” explained Al-Alawi.

He said queries leading to the purchase of residential properties such as financing options, legal norms, tax benefits, conditions for resale and returns on investment are conveniently being handled under one roof. BIPEX will also provide specialised services like management, renovation, insurance of properties and tax consultancy services for overseas holdings.