Dubai's bid to become the region's business and leisure hub to help compensate for depleting oil reserves has apparently set off a domino effect in the region where Oman, Qatar, Bahrain and Kuwait have announced multi-billion dollar projects.
Affluent Dubai has launched several grandiose housing, entertainment and resort developments on artificial islands, three in the shape of palm trees and one resembling a world map.
Property yet to be built on at least one of the islands has been sold three times over, as investors across the Gulf Arab region seemingly brush off the threats of terror and instability.
Capitalising on a potentially lucrative market, gas-rich Qatar is in the throes of its first international real estate venture with The Pearl-Qatar, a $2.5-billion artificial island off its coast.
The initial phases of selling apartments on the development, which will include housing for up to 30,000 people, met an overwhelming response from regional and international investors, developers said.
The island, to take the shape of a bay eventually covering an area of four million square metres of reclaimed land, will boast luxury hotels and marinas. Foreigners who buy property on it will be granted permanent residency, as is the case in Dubai.
Qatar's unique project
Husam Abu Issa, vice-chairman of the Salam International Investment Company in Qatar, said the Pearl was the country's first unique project.
"The government is also trying to locate other areas where foreigners can buy property," he said. "It's the trend of government policy to encourage investment, and there's been a very positive response."
Qatar is all set to launch its first
international real estate venture
Qatar is building a $5.5 billion airport to handle up to 60 million passengers annually by 2020, while Dubai has embarked on a $4 billion airport expansion project with the same target.
Since creating a tourism ministry last June, picturesque Oman is actively promoting itself as a Gulf destination.
"There's various projects in Oman to encourage more investments," said Muhammad Ali Said, the ministry's director general. "There's a master plan to develop a lot of areas."
Last year, the Omani government launched The Wave, an $805-million resort project stretching along miles of virgin beachfront just west of the capital Muscat, with 400,000 sq m of it to come from reclaimed land.
About 400km from the capital in Ras al-Had, the sultanate will next year start work on a multi-billion dollar eco-resort including an airport and houses open for sale to foreigners.
"There's no competition between us and the (other) Gulf (states). We complement each other. Tourists can go shopping in Dubai and come here to see the real culture, tradition and heritage," Said said.
Tiny Bahrain is building its largest luxury residential, commercial and resort development, one of the kingdom's three major leisure and housing projects to encourage investment.
The 1.2-billion-dollar Durrat al-Bahrain, or Rising Pearl, will consist of 13 islands and a range of facilities with 2000 villas and 3000 apartments available for sale to expatriates.
"There's no competition between us and the Gulf. We complement each other. Tourists can go shopping in Dubai and come here to see the real culture, tradition and heritage"
Director-General Muhammad Ali Said, Oman Tourism Ministry
Due for completion by late 2009, it is expected to be one and a half times larger than the capital Manama and accommodate 30,000 residents and 4000 visitors daily.
Bahrain's Cabinet on Sunday approved additional areas in specific tourist regions where non-Bahrainis can own real estate.
Kuwait, where alcohol and discos are banned and hotels need permission to stage musical concerts, is also vying for a slice of the region's expanding industry, taking a first step by easing its rigid visa rules.
The emirate, which raises more than 90% of its income from oil, is attracting investors for a multi-billion-dollar project to turn its Failaka island into a major holiday resort. It is also mulling the idea of allowing foreigners to buy property.