Staff Updates

Developing our professional team is always on the priority list for Berkeley Assets, which is why we’re committed to maintaining their well-being. We’ve been continuing our trend of socialising outside of work by encouraging our staff to join our sports activities. In this quarter, we had a lot of fun, engaging in activities such as laser tag, rock climbing, gym classes, and evening outings to Bluewaters and Emaar Beachfront. These outings provided the team with opportunities to relax and unwind after a week of hard work. 

As our business continues to grow, we’ve been actively conducting top talent interviews which took place at our open-day recruitment event in London this July. We’re thrilled to have new starters join us in the Middle East this year to maintain and deliver excellent client satisfaction. Notably, we've also marked a significant milestone with the launch of new offices and a substantial 50% expansion of our team, including the addition of a standout recruit from JPMorgan.

Bridging and Development Financing

We have recently secured an opportunity to provide a short-term bridging loan to one of the UK's leading real estate developers. We typically handle two to three of these loans annually, often at higher interest rates due to their urgent funding needs and short timelines, usually a four-day deadline.

Real estate developers face penalties for missing deadlines and must cover employee salaries. To prevent defaults or delays, they opt for bridging loans, ensuring swift access to capital. These loans are crucial for addressing unforeseen expenses and maintaining project timelines when traditional financing encounters delays. We capitalise on bridging loan opportunities while mitigating risk by holding a charge on the assets themselves.

Global Markets

The Financial Times reports that the USA is likely to be the best market for the next 10 years, with technology benefits such as artificial intelligence (AI) leading this trend. Goldman Sachs estimated that widespread adoption of generative AI could raise overall US labour productivity growth by 1.5% points a year, doubling the recent pace and possibly lifting US gross domestic product by 1.1 points for 10 years. 

On September 9 at the G20 Summit in New Delhi, the UAE, KSA, EU, India and USA announced their collaboration on the India-Middle East-Europe Economic Corridor (IMEC). The corridor significantly enhances connectivity and integration between partaking countries, comprising of two different pathways, reducing shipping costs across the network and facilitate trade in goods and services.

Additionally, Moody’s cut the credit rating of several midsized lenders and warned that higher costs could cut into their profitability. Ten midsized US lenders were cut early in August with Moody citing a slowdown in deposits, higher funding costs and asset quality risks.

Furthermore, the global alternatives industry is growing, with assets under management expected to nearly double to $23.21 trillion by 2026, from an estimated $12.32 trillion at the end of 2021, a previous report by Preqin found.

Regional Stability

In the past eighteen months, we have observed a consistent and steady decrease in inflation rates in the United Arab Emirates. This economic stability has been further bolstered by a significant influx of new residents in the region. The recent surge in population has been largely attributed to the World Health Organization's announcement that the COVID-19 pandemic no longer poses a global health emergency. This declaration has led to a resumption of normal life, sparking a migration trend towards countries that offer promising economic prospects, such as the UAE.

Adding to the appeal of the UAE as a business destination is its flourishing tourism industry. The country’s rich culture, luxurious lifestyle, and architectural wonders have always been a magnet for tourists from around the globe. In tandem with this, the local government's proactive and encouraging approach towards enterprise and startups further amplifies the potential for business growth. This combination of factors, from a thriving tourism industry to supportive government policies, presents a multitude of opportunities not just for our business, but more importantly, for our esteemed clients. These conditions offer the perfect platform for businesses to thrive and expand, making the UAE a promising and lucrative business hub.