Dubai is the world’s resurgent entrepot
An influx of Russians shows how the emirate gains by playing all sides
Summer is sleepy in Dubai, a time when locals and rich expats flee for cooler climes. For the emirate’s property brokers, though, this one was anything but languid. Viewings were a race: show up a few hours late and that sea-view apartment may already be spoken for. One spent whole afternoons camped out in the lobbies of fancy buildings, with showings every half-hour. The United Arab Emirates (uae), a seven-member federation that includes Dubai, is forecast to add 4,000 new millionaire residents this year, more than any other country. That is welcome news for a property market which contributes 8% of gdp—if not for brokers who want to be on a beach.
These are heady times for the Middle East’s energy exporters. The Saudi economy is projected to grow by 7.6%, among the world’s fastest rates. Smaller Gulf states will have windfalls to pay down debt and top up sovereign-wealth funds. Even dysfunctional countries like Iraq should run surpluses. But the uae, and Dubai in particular, does not only benefit from high energy prices. It also gains from the sanctions and geopolitical disruptions that helped send those prices soaring. The city’s stockmarket has risen by 9% this year, compared with a 2% lift in Riyadh.
This article appeared in the Finance & economics section of the print edition under the headline "Entrepotluck"
Finance & economics September 24th 2022
- Dubai is the world’s resurgent entrepot
- A global manufacturing slowdown suggests worse is to come
- Households across the rich world have never been so gloomy
- As America raises rates, the rest of the world bears the pain
- Peter Thiel says California suffers from a “tech curse”. Is he right?
- Why Wall Street is snapping up family homes
- Do lawmakers beat the market?
- How to rebrand stockmarket indices
More from Finance & economics
What campus protesters get wrong about divestment
Will withdrawing money hurt Israel?
Hedge funds make billions as India’s options market goes ballistic
The country’s retail investors are doing less well
Russia’s gas business will never recover from the war in Ukraine
Hopes of a Chinese rescue look increasingly vain