London: Abu Dhabi’s top addresses on Saadiyat Island have shed more than a quarter of their value since 2015 new research has found.
Despite the opening of the Louvre on the island in November, prices remain under pressure according to Cluttons even as the sider market shows signs of stabilization.
Sea-facing villas on Saadiyat Island, which are some of the most expensive in the emirate at 1,700 dirhams ($463) per square foot, have seen no movement in prices for the past two consecutive quarters, Cluttons found.
The cost of buying the luxury Saadiyat properties had fallen significantly since 2015, with prices dropping by an average of 26.1 percent, Cluttons said, as the emirate’s economy faltered due to declining oil prices.
Faisal Durrani, head of research at Cluttons, said confidence in the economy is starting to return, encouraging buyers to invest in property again.
“2018 looks set to be a better year for the UAE economy as a whole, with GDP expected to expand by 2.6 percent, from a seven year low growth rate of 1.7 percent last year. This is, in turn, expected to help support more stable rates of job creation and increased government spending as confidence levels improve,” he said.
He added that news at the end of last year that the national oil company Adnoc was planning to spend 400 billion dirhams over the next five years to boost growth is likely to further bolster economic growth.
Edward Carnegy, head of Cluttons Abu Dhabi, said the stabilization of prices is likely to continue this year. “In fact, we have noted a marginal uptick in demand from Emirati buyers predominantly, looking for second homes, or expanding their buy-to-let investment portfolios on Saadiyat Island,” he said.
Other property experts are also noting that the market is beginning to stablize.
Taimur Khan, senior analyst at Knight Frank said: “The short term trends seems to be that the residential market is improving but we are still very likely to see further price falls across the market in 2018. Economic activity in the capital is beginning to recover both in the oil and non-oil sector and this may help spur demand and support the market somewhat.”
Rents across Abu Dhabi’s residential areas have decreased by 2.3 percent in the first quarter of this year, marking a slower rate of decline that the 4.3 percent drop during the final quarter of 2017.
This means rents are 11.5 percent lower than this time last year.
The Cluttons report said that the continued decline in rents reflects some lingering concerns among tenants about potential job losses coupled with the rising cost of living. The introduction of value-added tac (VAT) at the beginning of the year and the increase in inflation, has placed additional pressure of household budgets.
Tenants are more likely to attempt to negotiate more favorable rates with their landlords, said Carnegy.
“As a result, tenants are negotiating reductions at renewal, while landlords are increasingly receptive to meeting the expectations of tenants by agreeing to close deals below headline asking rates, and they are offering flexible rental payments in multiple cheques to attract tenants as well as other incentives such as zero commission payable and rent free,” he said.
Abu Dhabi Saadiyat pads need more than Louvre opening to lift prices
Abu Dhabi Saadiyat pads need more than Louvre opening to lift prices
- Despite the opening of the Louvre on Saadiyat Island in November, prices remain under pressure according to Cluttons even as the sider market shows signs of stabilization.
- The cost of buying the luxury Saadiyat properties had fallen significantly since 2015, with prices dropping by an average of 26.1 percent.
Gulf-EU value chain integration signals shift toward long-term economic partnership: GCC secretary general
RIYADH: Value chains between the Gulf and Europe are poised to become deeper and more resilient as economic ties shift beyond traditional trade toward long-term industrial and investment integration, according to the secretary general of the Gulf Cooperation Council.
Speaking on the sidelines of the World Governments Summit 2026 in Dubai, Jasem Al-Budaiwi said Gulf-European economic relations are shifting from simple commodity trade toward the joint development of sustainable value chains, reflecting a more strategic and lasting partnership.
His remarks were made during a dialogue session titled “The next investment and trade race,” held with Luigi Di Maio, the EU’s special representative for external affairs.
Al-Budaiwi said relations between the GCC and the EU are among the bloc’s most established partnerships, built on decades of institutional collaboration that began with the signing of the 1988 cooperation agreement.
He noted that the deal laid a solid foundation for political and economic dialogue and opened broad avenues for collaboration in trade, investment, and energy, as well as development and education.
The secretary general added that the partnership has undergone a qualitative shift in recent years, particularly following the adoption of the joint action program for the 2022–2027 period and the convening of the Gulf–European summit in Brussels.
Subsequent ministerial meetings, he said, have focused on implementing agreed outcomes, enhancing trade and investment cooperation, improving market access, and supporting supply chains and sustainable development.
According to Al-Budaiwi, merchandise trade between the two sides has reached around $197 billion, positioning the EU as one of the GCC’s most important trading partners.
He also pointed to the continued growth of European foreign direct investment into Gulf countries, which he said reflects the depth of economic interdependence and rising confidence in the Gulf business environment.
Looking ahead, Al-Budaiwi emphasized that the economic transformation across GCC states, driven by ambitious national visions, is creating broad opportunities for expanded cooperation with Europe.
He highlighted clean energy, green hydrogen, and digital transformation, as well as artificial intelligence, smart infrastructure, and cybersecurity, as priority areas for future partnership.
He added that the success of Gulf-European cooperation should not be measured solely by trade volumes or investment flows, but by its ability to evolve into an integrated model based on trust, risk-sharing, and the joint creation of economic value, contributing to stability and growth in the global economy.
GCC–EU plans to build shared value chains look well-timed as trade policy volatility rises.
In recent weeks, Washington’s renewed push over Greenland has been tied to tariff threats against European countries, prompting the EU to keep a €93 billion ($109.7 billion) retaliation package on standby.
At the same time, tighter US sanctions on Iran are increasing compliance risks for energy and shipping-related finance. Meanwhile, the World Trade Organization and UNCTAD warn that higher tariffs and ongoing uncertainty could weaken trade and investment across both regions in 2026.
