Dr. Gil Feiler

It is no secret that the global financial crisis was a severe blow to the real estate markets in the oil rich Gulf countries. In a recent report, Martin Kohlhase, assistant vice president and analyst at Moody\'s, noted the real estate sectors in Dubai and Doha will be affected most with a decline in property prices and a slowdown in construction activity. Layoffs in leading contracting companies in the region were already reported in recent weeks.

Hundreds of billions of dollars of construction projects have been cancelled or delayed in the Gulf region as a result of the economic decline. It should be noted that the effects of the crisis are significantly felt in the once-flourishing emirate of Dubai real estate sector, which is facing a huge price correction.

The hardships of the sector in the Arab world were recently demonstrated in the recently held MIPIM - the international market for real estate professionals and investors. Despite the phenomenal organization and the spacious facilities the attendance of Mideast firm was far lower compared to the 2008\'s edition. \"It is no surprise due to the current uncertainties in the market,\" one exhibitor told me. \"However, the presence of companies from this region reflects from one hand the importance attached to this international event and from the other hand the hope for gradual recovery,\" he added.