The SA property industry is booming with property prices driven up almost 30 % last year by low interest rates and confident investors. But SA property values still lag behind international prices and are still attracting foreign investors, even with a buoyant rand.

Now the country has attracted the attention of Arab investors who have "discovered South Africa as a paradise".

"The Arab world's perception of South Africa is changing as more businessmen and tourists from the region visit your country. We are fascinated by the high levels of infrastructure and sophisticated businesses which makes South Africa comparable to a first world country," says Hamid Al-Yousrri, Vice President of the QCCapital Group.

The Dubai based company has extensive investments in hotels, industrial estates and residential complexes in Britain, Australia and the Middle East.

Mr Al-Youssri, who visited South Africa twice last year, was in the country last week with his team of advisors to consider investments worth R 800 million in property developments in Johannesburg and Cape Town.

Ian Anderson, VP for International Markets at QCCapital, said that the group had entered into negotiations to invest in the Gold Reef Towers Development, a soon to be launched R900 million project being developed adjacent the Gold Reef Casino in Johannesburg.

Ebrahim Patel, Managing Director of Gold Reef Towers Development (Pty) Ltd , the developers, confirmed that discussions were being held with the group. " We are exploring various options with QCCapital regarding our property developments"

Gold Reef Towers comprises a 150 room hotel, conference centre, entertainment complex and retail village. The development, scheduled to commence construction in January 2005, will span three phases over fives years and create more than 15 000 jobs in an area that has a high unemployment rate. “ Our development has considerable positive economic impact on the southern suburbs. We approached local government and the Gauteng Economic Development Agency (GEDA) who have give us tremendous support as this project is of strategic importance to the city and the province,” said Mr Patel.

The fully black-owned company includes a consortium of ten businesswomen, two community-base investment co-operations and individuals. The company has thus far invested its own capital in the development for the acquisition of the land.

A leading international hotel operator has already been confirmed and negotiations are in place for a conference operator. 

With the increase in oil-prices and the weakness of the US Dollar cash-flush Arab "petro-dollars" and Arab investors are looking for new areas of investment.

Recently another large Arab property company, Kuwait based IFA, took a stake in Zimbali development on the KZN North Coast