If you like reasonably priced real estate in a fast growing market surrounded by wealthy neighbors, you will love Abu Dhabi, the capital city of the United Arab Emirates (UAE) located on the Arabian Gulf.

This amazing city ,with its compassionate rulers and rags to riches story, is expanding rapidly into tourism, commercial nuclear power, and reluctantly acting as the primary financial backer of its troubled neighbor, Dubai.

In 1960 Abu Dhabi residents were uneducated pearl divers with no medical care, no running water, and it seemed, no hope. Most could not read. But their faith in God did not waiver then and it does not waiver now.

Thanks to the discovery of oil, there was plenty of wealth to go around, but it was not being shared until the much beloved late Sheikh Zayed began his rule in 1971. He could not do enough for his people and friends in need. He gave them land, money, and business opportunities. He built hospitals, schools and roads. The area started to grow.

Abu Dhabi’s estimated 950,000 population is projected to triple by 2030 to 3.1 million. Things move fast in this part of the world.

In a span of just ten days in December 2009, the Abu Dhabi government signed contracts for a South Korean company to build four nuclear power plants. A few days earlier it provided a last-minute $10 billion bailout for their iconic fellow emirate, Dubai.

The commitment to go nuclear may one day prove to be as important as the discovery of oil.

According The National newspaper, “The $20 billion award for four power stations to be built by 2020 will supply up to a quarter of the emirate’s energy in 10 years and will drastically reduce the country’s substantial carbon footprint."

“Fifty years after oil was first found in Abu Dhabi, profoundly changing its economy and placing it firmly on the world map, it is about to go through another transformation. For those accustomed to seeing this country solely as a traditional oil producer, this may have not yet registered. But it is impossible to overstate the significance of the decision to go nuclear."

At the same time, Abu Dhabi may find itself pressed to become the deep-pocket banker for Dubai, a position it does not appear to relish.

According to The National, “Abu Dhabi’s move to assist its struggling neighbor with $10 billion in bonds came on the due date of a $4.1 billion sukuk issued by Nakheel, the property subsidiary of Dubai’s troubled conglomerate Dubai World.  Last month, Dubai raised $5 billion from two Abu Dhabi banks, “Dubai may be forced to continue its dependence on oil-rich fellow emirate Abu Dhabi, which has bailed the emirate out directly and, earlier this year, indirectly by way of two Abu Dhabi-listed banks and the central bank.” In contrast to Dubai’s issues with the now stalled Dubailand development, just down the road Abu Dhabi’s Yas Island is well on its way to becoming what Dubailand’s developers can now only dream of. Ferrari World Abu Dhabi the world’s largest indoor theme park with the world’s fastest roller coaster is scheduled to open in 2010. Seven hotels are already open, lead by the already iconic five-star Yas hotel. The 18-hole links-style golf course is scheduled to open in March 2010, and the first of six planned marinas is completed and was full during the recent Formula 1 race held on the new Yas Marina Circuit race track.

Abu Dhabi’s tourism and commercial energy industries are projected to play major roles in its non-oil growth, as projected in Plan Abu Dhabi 2030:

2013 –1.3 million residents, 3.3 million annual tourist visits, 251,000 residential units

2020 – 2 million residents, 4.9 million annual tourist visits, 411,000 residential units 2030-3.1 million residents, 7.9 million annual tourists visits, 686,000 residential units The 142-page plan calls for an emphasis on energy driven development, cultural diversity and broad education opportunities.

The plan includes an impressive endorsement of its direction. “With the recent recognition as one of the top 10 sustainable cities of the future by the Ethisphere Institute, a US/based think tank that researches and promotes good government and social responsibility by corporations, Abu Dhabi is on the right path in transforming itself into the sustainable capital of the Arab world.” In addition, while these and other Abu Dhabi stories are unfolding, local real estate experts say that real estate prices are stabilizing.

“Residential real estate prices are likely to stabilize in 2010, with buyers investing for the long term. At the same time, rents in Dubai’s commercial sector have stabilized over the last three months. While office rents in the emirate had been falling since late last year, the rentals have stabilized of late,” according to Better Homes data.

“Moreover, buyers investing in residences in Dubai will enter on a long term basis, indicating a less speculative interest in the emirate for next year,“ according to Mohanad Alwadiya, Manager Director of Harbor Real Estate.

“The pace at which companies were restructuring and consolidating their plans to cut down their staff an d give away additional space during the first half of the year have reduced over the past few months keeping the vacancy level of the office space stable to 25 per cent in the region," said Porush JhunJhunwala ,Manager, Commercial Leasing at Better Homes.

At this point, it is too early to tell whether the Abu Dhabi Government is too busy with Abu Dhabi’s growth to take on even more Dubai-related bailout responsibility. There will no doubt be heated discussions behind closed doors on this very issue.

No doubt, some of the men driving Abu Dhabi’s success today were hard working, dirt -poor pearl divers just 50 years ago. It is an incredible story of good fortune and compassionate leadership by men who care for their people and show it by giving them every opportunity to succeed. They know what it is to be poor and they know what is to be blessed with oil riches beyond their wildest imaginations.

Given the fact that Abu Dhabi and Dubai grew up together, suffered setbacks together, and shared their wealth with their people together, it will be interesting to see how the story plays out.

The world is watching with a strong belief in the continued mutual success of both.

David Fletcher writes this article for Realty Times from Abu Dhabi on a 5 week visit to see his family.

Published: January 4, 2010

Use of this article without permission is a violation of federal copyright laws.

David Fletcher has been a Florida real estate condominium and new homes broker for 30 years with more than $3 billion in new construction sales. In 2008, Keller Williams Realty International named him a "Lifetime Achiever." Along the way he has chaired the Florida Homebuilders Associaiton Sales and Marketing Council, trained thousands of general agents and on-site agents to work together, and was a featured speaker at the National Association of Realtors. Recently he founded New Homes Niche, a builder-certified co-broker training system "to meet the growing trend we see in short sale buyers moving to new homes for a lot of reasons." Call David at 407 234 2349, , and visit his website.