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In 2017, a total of USD81 billion (AED300 billion) of bank debt was lent to the real estate and construction sector in the UAE In 2017, a total of USD81 billion (AED300 billion) of bank debt was lent to the real estate and construction sector in the UAE

Growth of Private Debt to Boost Middle East Real Estate Market - JLL

The next decade is expected to witness a major growth in private debt as an alternative to commercial bank lending in the Middle East, with diversified capital sources boosting real estate market development.

According to a new report by JLL in conjunction with Clifford Chance, despite continued growth in the size of the global private debt market, the Middle East has historically lagged behind, relying on commercial banks as the primary lending source for real estate developers and investors.

The report titled Financing Bricks and Mortar; Opportunities for private real estate debt in UAE and KSA outlines how diversified debt sources and alternative financing structures will boost lending competition and, in turn, inject new capital into the real estate market.