Dubai real estate magnate Mohamed Alabbar: I don’t see cooldown
One of the UAE’s biggest developers has said Dubai’s property market could see a “hold” as he insists “smart capital” will continue to invest despite Iran’s missile attacks.
Mohamed Alabbar, founder of Emaar Properties, the company behind the Burj Khalifa skyscraper, told CNBC’s Dan Murphy that “there might be a bit of a waiting period, but I don’t really see that,” adding that the UAE’s real estate business “doesn’t rely on bank borrowing.”
“Bank borrowing in this market is really limited. Consumer confidence will be shaken a little, but as I said, the policies of this country bring confidence back very quickly,” he said on Thursday.
He was speaking on the sixth day of an escalating war in the Middle East, where the UAE has been hit by retaliatory strikes from Iran after the US and Israel launched an attack on Tehran on Saturday.
Countries repatriated their citizens. In addition to Dubai’s airport, one of the busiest airports in the world, hotels and ports across the country also disrupted flights.
“I was surprised and shocked,” Alabbar said of the strikes. “But people with real capital understand that a country like this, with stable leadership and the security it demonstrates, can achieve this. They will double down on it.”
He insisted that life was gradually returning to normal, adding that visitor numbers at the Dubai Mall had already returned to 190,000 visitors per day, compared to the typical pre-war 250,000 visitors per day.
“The number of customers coming to our restaurants is close to 80, 85 percent, and it’s only been four to five days,” Alabbar said. Dubai Mall is owned by Emaar Properties and is located next to Burj Khalifa. “Life is returning to normal,” he added.
When asked why Iran chose to target the UAE, Alabbar said: “This is the global business hub… This is what prosperity should be, what positivity should be.”
“So I think … people who have no respect for progress, no respect for a good quality of life, they probably think that’s one of their goals. But thank God, that’s not going to happen.” B.
Iranian Foreign Minister Abbas Araghchi, It is said that the attacks “are not targeting our brothers or neighbors in the Persian Gulf. We are targeting US targets.”
But other experts told CNBC that the wealthy are leaving Dubai.
Dale Buckner, CEO of security firm Global Guardian and a former Green Beret, told CNBC that as of Tuesday morning the firm had seven corporate clients, including large financial and consulting firms, that wanted to evacuate between 1,000 and 3,000 employees.
“This place is very similar to Ukraine,” he said.
“The US-Israeli war on Iran is disrupting the critical security climate in Dubai,” Jim Krane of Rice University’s Baker Institute told CNBC this week.
“Dubai’s economic model is based on expatriates providing brains, muscle and investment capital. To bring in smart foreigners, you need stability and security,” Krane added.
But Ameerh Naran, CEO of Vimana Private Jet, told CNBC that departing Dubai residents were traveling for business meetings, not to escape to safety.
“They don’t feel safe,” he said. “Normally life was just a little extra background noise with all these missiles. But life has to go on. They have to travel.”
