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 PIE real state investors from the Gulf Cooperation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - are dollar-based and cautious over currency risks. Much of this capital is also Sharia-compliant - consistent with Islamic law - which virtually rules out currency hedging, and these investors are wary of the euro because of economic strains. Founded in January WW Advisors has capital of $350m from GCC institutions and high net worth individuals. Its two core equity providers are the social security fund of Kuwait, WAFRA, and Kuwaiti private equity group Watheequa. "The business is an advisory business to capital coming in from the Middle East," Swan told PIE. "My shareholders have tapped into the Saudi market to have a capital source to invest in Europe and in the US..."