Prior to 2018 the former close ties between the UAE and Iran will be restored in full, bringing the positive impact to all the spheres of trade and commerce, including investments in Dubai real estate, IMF believes.
After the lifting of international sanctions from Iran, the UAE will receive up to USD 13 billion of revenues in its economy due to newly discovered opportunities. It is, in particular, due to the return of the Iranian investors to Dubai property market.
Additionally, it is easier to invest in Iran from Dubai, that’s why the emirate can expect a new influx of expatriates plan to do their business in Iran in coming years. “In finance, trade, banking, real estate investment – it will all be managed from Dubai. If you are a multinational, it makes sense geographically and economically to manage your business in Iran from Dubai,” the IMF said. As a result, a new tide of demand growth, especially for office spaces, should be expected in Dubai rental market in coming years.
It is also expected that after ending of sanctions on Iran the number of tourists from this country visiting Dubai annually would double. So, we also should expect further tourism sector development with increased demand for hospitality units.
According to IMF estimates, the annual GDP growth in the United Arab Emirates only because of the lifting of sanctions against Iran, is not less than 1%, plus an annual growth of 3% over the next three years.
Besides, “The UAE is well positioned to benefit from an opening of the Iran market by serving as a transshipment point for renewed trade activity,” Before sanctions on Iran were imposed, it accounted for 12 per cent of the UAE’s non-oil exports, valued at $12 bn, with most of it traded through Dubai’s Jebel Ali Port. Now, after the sanctions were lifted, exports are expected to restore to the previous levels, which will undoubtedly increase the interest in the UAE in general and Dubai's Jebel Ali in particular.
Dubai, as a kind of "Switzerland of the Middle East", took a neutral position in Middle East conflicts, gaining the status of the region’s stability pillar and everlasting "safe haven" for investment in various spheres. Therefore, the interest of the international community and business in the emirate will definitely grow in the coming years, which promises great dividends to the real estate industry too.