Interpreting Middle East Economic News and Analyzing Market Trends

Dubai property values rising fast – Experts agree, “this time is different”

With the local stock market up over 65% so far this year and property values up by more than 20%, the experts agree that this time is different.


Regardless of what is happening around the world, Dubai economic fundamentals are sound say the experts.  We would argue the opposite.  What is driving money to Dubai are the problems in other parts of the world.  Currency issues in emerging markets such as India, sanctions in Iran, uncertainty across the Middle East are all factors driving money to Dubai and inflating its markets.  The fundamentals are not sound.  Fundamentals go out the window when markets are rising fast.


In 2008, the experts in Dubai were insisting that the sub-prime problems were a US problem and in no way are going to affect Dubai.  Dubai is different they said.