Mid-East RE investors seen focused on US, UK; cautious on euro

Middle East real estate investment capital moving abroad is likely to focus primarily on the US, partially for currency reasons, and in Europe on the UK because of the deeper property price correction than on the mainland, says the managing director of a new London-based private equity and advisory firm WW Advisors. David Swan told PFE in an interview that real state investors from the Gulf Cooperation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - are dollar-based investors and cautious over currency risks. Much of this capital is also Sharia-compliant - consistent with Islamic law - which virtually rules out currency hedging. These investors are also wary of the euro because of economic strains, particularly focused on the ailing economies of Portugal, Ireland, Greece and Spain.