Big money Middle East property investors are eyeing the UK market in increasing numbers, according to new research.

Investors from Saudia Arabia, Qatar and UAE see the UK as a strong investment opportunity as their confidence in the market grows, according to a report from the UK’s oldest Islamic bank, Al Rayan.

The research found that almost nine in 10 (89%) see the UK as a priority for investment, with 85% saying their confidence in the UK has increased over the last 12 months.

Attractive to investors

Surplus demand, reliable investment returns, strong rental growth and the availability of diverse assets, are all factors attracting investors.

Al Rayan surveyed 150 investors from Saudi Arabia, Qatar and the UAE with an average net worth of $208m, and found that almost all (93%) are planning to make new investments over the next five years, with many looking at property across the UK’s regions.

Liverpool (34%), Manchester (34%), Birmingham (26%), Brighton (23%) and Newcastle (19%) are the top five targets for this investment, outside of London (56%).

Global market

More than half (59%) of the respondents are considering residential apartments, and 49% are seeking residential housing​.

The research found that a third of respondents (33%) have bought property in London over the last 12 months, more than any other major global market.

UK property is the darling of GCC investor portfolios.”

Maisam Fazal, CCO, at Al Rayan Bank, says: “UK property is the darling of GCC (Gulf Cooperation Council of six Arab countries) investor portfolios.

“Investors know they can rely on the UK’s stable currency, growing demand for housing, rising rental incomes, transparent legal system and its established network of skilled property professionals, which make buying and owning property in the UK a profitable and headache-free experience.”

The full report is available here

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