How the Arab Spring gave Dubai's markets the comeback they needed
Dubai’s economy is back on track with GDP growth at almost 5%. Combined with the currently very low interest rates this will naturally fuel property prices – which are currently growing faster than anywhere else in the world – and create fears for yet another bubble.
“There is however, an additional driver of demand that didn’t exist in the mad credit frenzy of 2003-2008 - the influx of money and people that has come as a result of the Arab Spring,” writes Kit Juckes, global strategist at Société Générale, in a blog post.
“The rich are either sending their money to the Gulf, or sending themselves there too. It isn’t easy to quantify but the planes are full, the hotels are booming and the anecdotal evidence is plain to see. Reuters estimated earlier this year that DH30bn flowed into the region last year and this year, Cyprus…Syria and Egypt will all have added to the flow of money.”
- Trouble getting them, trouble keeping them? Middle East firms challenged in attracting, retaining talent
- Does capitalism provide a solution to terrorism?
- No pain, no gain: Tunisian economy needs three years of tough love before rebounding
- How will MENA economies look in 2015?
- Sanctions face-off: Iran to unveil its corporate side in London next week
- Will Dubai enjoy another year of surprising recovery in 2012?
- UK: Arab Gulf investments in real estate sector down
- Dubai still dealing in deluxe: prime property prices hit the roof by 20 percent
- The growth of the Real Estate market in Dubai is protected
- Why Dubai's housing market is more riskier than we thought