Emaar founder Mohamed Alabbar has outlined a radical new proposal to tackle the United States’ housing shortage, by raising $400bn and creating a staggering 20 million new jobs.
Speaking to Lana on the sidelines of the Reuters NEXT Gulf conference, Alabbar said:
“This is a message I’m sending to President Trump – you have a housing shortage of almost 4.5 million in America, and that increases by 200,000 units a year. This is creating huge inflation in housing, along with instability and affordability – New York is a good example.”
“I’ve done all my studies; I can raise $400 billion in collaboration with big developers in America, and in collaboration with cities and states that have state land and federal land,” he said.
Most interesting, the property mogul, who is also the founder of Eagle Hills, Noon, and Chairman of Americana, said, was that the project could “create 20 million jobs,” and generate $2.5 trillion in tax for government.
‘Trump cares’
The staggering size of this project would also help reduce overall inflation, Alabbar said, noting that rising housing prices contribute about 2 per cent of annual inflation, “which is a disaster.”
“For how long can a country sustain a housing shortage of 200,000 a year?” Alabbar asked. “I think Trump cares. I think he’s a guy who has good common sense.”
The implications of this investment plan would be profound. The Emaar founder believes it would have around a $4 trillion impact on the US economy. However, ignoring the current situation would mean the US loses “almost $400 billion of economic activity in its GDP,” Alabbar said, alongside exacerbating existing affordability issues.
“Of course, we must learn from what’s going on in other countries where the younger generation and Gen Z are struggling because of housing issues. They face affordability problems, and housing is one of the biggest issues.”
