Impact of Global Economic Shifts on Dubai’s Investment Climate

Impact of Global Economic Shifts on Dubai’s Investment Climate

As the legend goes, you are to find a pot of gold if you can find the end of the rainbow. It is a nice legend that provides people with a glimmer of hope with its positive message.

While there is no rainbow in the global economy Dubai remains a pot of God. The message being sent to investors and regular homeowners is that there is still hope for a solid financial future if you invest in the Dubai real estate market.

Dubai’s investment in the non-oil sectors has helped sustain its economic levels as well as helped it to grow when the oil sector has fallen on rougher times.

Going Against The Fintech Grain

It seems that falling investment figures do not scare Dubai leaders or even the leaders of the UAE. The fintech market has seen an almost 50% decrease in global investing yet these leaders have pumped more money into this market.

What led to this investment decision was the fact that the UAE created some fintech-friendly regulations, But that is not all that they did. They also expanded their digital banking operations as well as expanding other tools.

This move helped propel the UAE into the top 10 of fintech investing and has helped keep its investment culture from losing funds. They have been able to avoid any disasters with their intelligent market and banking moves.

Slowing Global Growth

This is another area where Dubai has gone against the grain and won. It is predicted that the overall global economic growth will slow but not reverse itself. Other countries of the world are not experiencing the type of economic growth that is taking place in Dubai.

Instead of slowing down to the world level, Dubai’s economy is expected to remain strong and grow at a better rate. This is despite the downturn in oil profits for the current year.

But again, the leaders of Dubai took notice of this global slowing and took steps to combat the slow growth with better policies and decisions. So far, they have skirted the problem and have kept their investment climate on a positive upward trend.

Inflation Rates Are Cooling

This is not just for Dubai but for the rest of the world as well. Yet, the dropping inflation rate has been faster in Dubai than in other parts of the globe. In fact, it is said that Dubai’s and the surrounding areas’ inflation rate has reached pre-pandemic levels already and much faster than other countries.

What this dropping inflation rate means is that there will be more money available for investment in Dubai Real Estate as well as other investment opportunities.

With more money to invest and very attractive housing prices, investors should still see a good return on their investment even if they do not hold onto their properties for more than 5 years. Thus the dropping inflation rate will impact the Dubai investment culture in a very positive manner.

AI Development

Instead of jumping on the global AI development bandwagon, Dubai and other UAE leaders are driving it. They have seen the future and the potential of AI development and have begun to lead the way in implementing this technology throughout the city.

Through various partnerships, Dubai is streamlining business processes and creating numerous business opportunities through AI technology. This implementation goes beyond business ventures.

It is also being applied to healthcare, finance, media, and technology sectors in the hopes that costs will come down while employees are armed with better tools and knowledge. The costs should be lowered through streamlining because the technology will handle more tasks once relegated to humans.

Unique Decisions

Saudi Arabia’s decision to become the most visited city in the world has sparked a desire to visit the region. The country is playing host to Formula One Racing, the 2030 Expo, the 2034 World Cup and the rise in tourism to the region should spill over to Dubai and surrounding neighbors.

It is a good guess that some of this year’s 30 million international visitors will plan to visit Dubai and see all of its world-class sites.

Global Economic Impact On Dubai’s Investment Climate

It seems that as the global economy slows down, it has wrapped a protective bubble around Dubai. The investment climate in this city does not seem to have been harmed by the global changes.

The different economic decisions made and implemented by the Dubai government have attracted even more investors to it. While other countries’ economies are slowing, Dubai, because of these decisions is still growing at a rapid rate.

Those decisions come from a very investor-centric position Dubai has taken over the years. This is also done by the government’s decision to expand its economical foundation to include non-oil enterprises.

This decision has kept the hospitality, tourism, transport, and warehousing sectors booming even though the oil prices have taken a large hit recently. Tourism alone has achieved its goals long before the year ended.

Then the real estate market has continued to grow as housing prices remain attractive. Foreign investors have outpaced regular home buyers when it comes to snapping up properties.

This is because foreign businessmen want to set up their new businesses in this very business-friendly city. Dubai issued over 45,000 new business licenses in 2022 which tells you that foreign investors are happy with what they are seeing investment-wise in this city.

Some Additional Words

You may not be able to drive the bandwagon but you can get on it and exploit the continued benefits that come with investing in Dubai. To get yourself on the right track, just call our estate company

Not only are our estate agents the best in the world, but they also have the experience you need to find the right real estate investment for your portfolio.

Call our office today and see what we can do for you and how we can help you take advantage of this booming investment climate.

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