Buffett's Berkshire Hathaway moves into Dubai despite property slump

DUBAI (Reuters) - The real estate affiliate of billionaire investor Warren Buffett's Berkshire Hathaway Inc said on Sunday it will expand its brokerage operations into the Middle East by opening an office in Dubai.

Reuters April 29, 2019 00:05:19 IST
Buffett's Berkshire Hathaway moves into Dubai despite property slump

Buffetts Berkshire Hathaway moves into Dubai despite property slump

DUBAI (Reuters) - The real estate affiliate of billionaire investor Warren Buffett's Berkshire Hathaway Inc said on Sunday it will expand its brokerage operations into the Middle East by opening an office in Dubai.

It said it also plans to open a second United Arab Emirates office in Abu Dhabi "within a year".

Berkshire Hathaway HomeServices Gulf Properties will be led by Chairman Ihsan Husein Al Marzouqi and Chief Executive Officer Phil Sheridan, a company statement said. They will have a team of 30 advisers and support staff.

"Dubai has been a top priority for our network's global expansion as it represents innovation among world leaders and is a top global center for trade, logistics, tourism and finance," said Berkshire Hathaway HomeServices Chairman, Gino Blefari.

The company's expansion into Dubai comes despite a downturn which has seen property prices fall by more than a quarter from a peak in mid-2014, hurting earnings of the emirate's top developers and forcing construction and engineering firms to cut jobs and halt expansion plans.

S&P Global Ratings said in February Dubai residential property prices will fall another 5-10 percent this year due to a continued gap between supply and demand, before steadying in 2020.

House prices in the highly diversified economy of Dubai in 2009-2010 plunged more than 50 percent from their peak. This forced Dubai to seek a $20 billion bailout from oil-rich Abu Dhabi to escape a debt crisis, which had threatened to force some state-linked companies to default on billions of dollars of debt.

(Reporting by Tuqa Khalid; Editing by Elaine Hardcastle)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.