UAE: Dubai

Increasing consumer awareness and growing demand for retail products are set to drive activity in Dubai’s Islamic financial services (IFS) sector, offering scope for sustainable expansion despite forecasts of slower short-term economic growth.

A growing oversupply in some segments of Dubai’s residential real estate sector is encouraging developers to reposition their offering towards mid-range buyers, as the market witnesses broader price adjustments.

On August 1, an increase in petrol charges came into force in Dubai and the rest of the UAE, following the announcement on July 22 by the Ministry of Energy (MoE) that the government is reducing the fuel subsidy it has traditionally paid. 

 Iran’s recent deal with world powers is expected to create a raft of trade and investment opportunities for Dubai, widely seen as Tehran’s stepping stone to re-engagement with global markets.

Rising student numbers and a broader range of academic choice are driving expansion in Dubai’s private university system; however, institutions are being forced to tackle issues such as affordable student accommodation to drive further growth. 

A tapering of demand will lower earnings in Dubai’s tourism and hospitality industry this year, though an expected rise in arrivals from emerging markets, in particular Asia, may offset weaker traffic from more established sources of visitors.