Dubai World’s African Property Investment Fund

News that Dubai World Africa, an offshoot of the Dubai World investment fund, has announced plans to target 6 African nations in the future with a view to increasing the group’s exposure to the region is a big tick in the box for the future of African property.  Dubai World has set it developer sights on six African countries: Benin, Gabon, Uganda, Tanzania, Botswana and Namibia, all of which look set to receive a much needed boost to their property markets.

At a time when few are even considering substantial investment in Africa, it seems as though African property forms an integral part of the Dubai based investment funds strategy moving forward, with a strong emphasis on emerging if not creation of new property markets. Dubai World Africa is actively working on increasing exposure to the region, with upwards of 20 investments across 10 African countries already in place.

So what it is about Africa which is attracting investment in real estate which could top $1 billion over the next decade?

The Gulf-based fund advisers have suggested that while the Africa continent continues to disadvantage itself as a result of political turmoil and corruption troubles, it does offer an interesting hedge against the credit crunch engulfing the rest of the world.  There is also a train of thought which believes that current upheaval in the region, the more chance of fundamental change in the future.  Whether this change materializes in the short, medium or longer term remains to be seen.

The Dubai World investment fund has a reputation for long term investment in an array of markets around the world. Speaking about Dubai World’s investment strategy, Chintan Mahida, an overseas property expert at Nubricks.com, has this to say, “The group has recently been very active in the UK and other western property markets, but this substantial move into African property investment may well open up a very interesting debate about the region’s real estate potential.”

A look at their website shows high-end luxury real estate resort projects akin to those found in Dubai, with an strong emphasis on hotel resorts that have strong brand equity behind them such as the Comoros Kempski Luxury Beach Resort and One & Only Zanzibar. Other projects such as Haramous Luxury Villas Djibouti (following in the footsteps of Nakheel) and Gisakura Tea Factory Rwanda are boutique hotel resorts whilst investments in South Africa and Morocco property collaborations are more mainstream property developments.

“Given that China are also heavily investing in the region from a natural resources perspective, the fact that tourism and port operations are the funds main property investment targets at the moment would indicate that the Dubai World Africa fund advisers believe there is potential for substantial investment growth in the region.”  continues Chintan, “The only sting in the tail is that these projects do actually have a positive benefit for not only the local, indigenous population from a taxation, employment and infrastructure perspective but the country as a whole as a tourism destination.”