Middle East Expansion Interest Grows for Corporates

---

With an improved economic outlook, multi-national companies are demonstrating interest for international expansion into new markets, with the Middle East named as a go-to location for investment, according to a new report.

According to CBRE's annual European Occupier Survey, 30 percent of respondents identified the Middle East as the location of choice for expansion in the next two years, increasing from the 24 percent seen in 2012.

More than half of the corporates surveyed - who represent global corporations with a collective footprint of approximately 27 billion square feet worldwide - named access to new markets and customers as the main driver for choosing investment locations.

Of those surveyed, 48 percent named India as the location for expansion, double the amount from 2012. China was chosen by 42 percent, down from 60 percent the previous year.

The report shows a significant increase in interest in Africa, which is now identified by a third of respondents, 34 percent, as a target market. Traditional barriers to entry are falling for both India and Africa due to rapid population and economic growth, combined with increased transparency and improving infrastructure, the report states.

"While financial objectives still govern the corporate occupier landscape, increasingly there is a greater desire to look toward the future," Richard Holberton, director, EMEA Research, at CBRE, said in the report. "This has seen a greater alignment between real estate activities and broader business objectives. As corporate real estate teams become more strategic and client focused, scope remains for the trend of outsourcing to persist."