While touting Abu Dhabi-based Aldar Properties, investment bank Prime Holding notes in a recent research note that “the prevailing economic downturn has had a limited impact on Abu Dhabi’s long-term development plans,” and that “the Capital’s rich hydrocarbon reserves and years of prudent fiscal spending have helped Abu Dhabi maintain an enviable liquidity and financial position with sovereign reserves estimated at over USD600 billion.”  That said, “[the emirate’s] real estate sector continues to suffer from years of underinvestment and therefore exhibits strong pent-up demand for prime-quality residential and commercial units, retail and hospitality space.”  Prime’s sum-of-the-parts (SOTP) DCF analysis yields a fair value of AED5.8 per share, “indicating an upside potential of 17.2% over the current market price.”

A potential secular property convergence in Abu Dhabi can also be traded via Sorouh Real Estate and RAK Properties, the emirate’s second and third ranked property firms by market cap.

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