In a testament to the resilience and allure of Dubai’s economic landscape, the ultra-rich in the Middle East are doubling down on investments, with a striking 72% reporting increased investment activity year-on-year, reveals the latest Julius Baer Global Wealth and Lifestyle Report.
Ranked 12th globally, Dubai maintains its appeal as a financial epicenter with a competitive cost of living relative to other major global cities. Notably, the city ranks as the 6th most expensive in the Europe, Middle East, and Africa region, underscoring its status as a haven for high-net-worth individuals (HNWIs) seeking both financial opportunity and a luxurious lifestyle.
Despite global economic turbulence stemming from the pandemic, Dubai has weathered inflation and rising living costs better than most, bolstering its attractiveness among wealthy residents and investors alike. The strategic advantages of its geographic location—bridging East and West—coupled with world-class infrastructure, continue to draw businesses and investors seeking expansion into lucrative markets across continents.
Real estate emerges as a standout sector, constituting 8.9% of Dubai's economy and witnessing a robust 16% increase in US dollar-denominated prices.
"Dubai’s residential property market is exceptionally buoyant,"
notes the report, citing data from Knight Frank that places the city at the forefront of global luxury housing markets.
"The Middle East’s affluent are increasingly focusing on luxury residential properties,"
states the report, pointing out that more than half of respondents from the region have ramped up spending on such assets over the past year. This trend is set to continue, with 58% planning further investments in residential real estate in the coming year.
Moreover, the Julius Baer Lifestyle Index reports a moderate 4.0% rise in the cost of living across all goods and services in US dollars, marking the EMEA region as the priciest for maintaining a high-quality lifestyle.
With spending on business and leisure travel surging by 65% and 67%, respectively, over the past year, the Middle East stands out as a beacon of economic dynamism amidst global uncertainty. The region's penchant for luxury goods—from designer apparel to high-end watches—further underscores its robust economic health and consumer confidence.
News Source: Khaleej Times
