Hamad Al Wazzan- A strong return for Europe in the next 20 years!
Hamad Al Wazzan The Global Financial
Crisis of 2007-2008 and the current COVID-19 pandemic invite comparison with
the Great Depression and global influenza crisis of the first half of the 20th
century. So is it farfetched to suggest that the world could be in for an extra
dose of optimism and progress in the 2020s – much like what occurred in the
1920s? We asked real estate entrepreneur Hamad Al Wazzan to shed the light on
this issue.
“Glimmers of pent-up
demand began to appear during the summer months of 2020, with shopping centers
and popular brands reporting large queues and the need for crowd management.
This was short-lived – infections surged once more, stores had to reclose, and
lockdown measures resumed”, he explained. According to Hamad AlWazzan, despite
increased inequalities between socio-economic groups in 2020, many consumers
felt far better off than previously.
“Spending on commuting
costs, leisure activities, and annual holidays plummeted. And savings ratios
more than doubled in some countries, highlighting a spending pot that can be
easily tapped to facilitate pent-up demand when the pandemic is under control
by successful vaccination programs and consumer confidence returns”, explained
Hamad AlWazzan.
He believes that demand
for travel is likely to surge after 2020’s postponed and cancelled holidays and
business travel, and as families long to reunite. “The reopening of hospitality
venues in greater numbers and larger audiences should help meet that demand and
increase output from the sector. If the hospitality and retail sectors rise
from the ashes, it may not look too different from the legendary 1920s
parties”, added Hamad AlWazzan.
In his opinion, the €750 billion Next Generation EU recovery plan
agreed to in July 2020 was unparalleled. “For the first time, it allowed the EU
to issue debt. If Next Gen EU will transform Europe to such an extent remains
to be seen, but it certainly has brought the continent closer to political and
financial unity than was previously conceivable, reviving a dream that had all
but vanished in the last few years”, said Hamad AlWazzan.
According to him, the
Eurobonds raised from capital markets will help member states address the
pandemic’s economic and social impact while ensuring their economies undertake
green and digital transitions to become more sustainable and resilient. “This
could have a considerable impact on Europe’s real estate sector. The European
Commission recommends that renovating housing be one of the national recovery
and resilience plans’ priorities. Such renovations could simultaneously help
achieve the two European goals of ecological transition and digitalization of
the economy through smart buildings that are more energy efficient”, concluded
Hamad AlWazzan.
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