Dubai, which was only a city of 40,000 inhabitants in 1960, today attracts people from all over the world and intends to grow further to reach 5.8 million inhabitants by 2040. “The turnaround began during the pandemic, when Dubai – emboldened by high vaccination rates – welcomed visitors before most countries lifted lockdown measures. This, combined with the relaxation of visa regulations, has sparked a rush of cryptomillionaires, bankers from Asia and digital nomads,” explain Bloombergwho adds that wealthy Russians were added to this population at the time of the invasion of Ukraine.
But this popularity, which can be explained by the ease of starting a business, a safe environment and advantageous taxation, has consequences on real estate prices and road traffic – “although Dubai still fares better than London, New York and Riyadh in terms of time lost per year during rush hours” – or even access to schools.
According to data analyzed by Bloomberg, “property prices in Dubai have exceeded those in London and Singapore since the start of 2019”. In response, developers are building wildly and many expatriates are turning to the more affordable city of Sharjah. As for schools, expatriates compete very hard to enroll their children in private schools (because they are de facto excluded from the public), where waiting lists continue to grow.
The Dubai dream can only continue if investments increase and infrastructure gains capacity. In any case, this is the bet the government is making.
