Dubai: The City That Defies Global Market Rules

By Alessandro Console

In Dubai’s economic agenda, we are witnessing an incredible expansion that aims to double the GDP from 14.6 trillion to 26.2 trillion dirhams. This is not just an ambitious plan but a reality that is taking shape through a series of strategic initiatives. Among these is the goal to double foreign direct investment to 650 billion dirhams.

Parallel to this economic growth, Dubai is expanding its Trade Map with the addition of 400 new cities in the coming years. This means integrating 40 new cities every year, or about four cities a week, a colossal task that requires impeccable logistics and adequate infrastructure. In line with this plan, three new logistics corridors are being opened to facilitate international trade and position Dubai as a central hub in the global landscape.

So much is happening, and it is happening right now. Every year, about 250,000 people arrive in Dubai, attracted by the economic opportunities and the quality of life offered. This constant influx of new residents raises a crucial question: Is it possible that, with an economy doubling and growing so vertically, there is no corresponding growth in infrastructure?

The answer is: NO, it is not possible.

The need for new infrastructure is evident. Dubai needs new offices to accommodate the hundreds of new businesses that settle here daily. The city also needs new shopping centers, hotels, retail options, food and beverage establishments, beaches, clubs, parks, and residential communities. Furthermore, the construction of new towers and residential complexes is essential to host the growing population.

When you observe a 70% increase in population, it is imperative to have sufficient real estate offerings to meet this demand. Yet, despite these evident needs, some external observers do not understand Dubai’s unique dynamics and predict a market crash or a price correction. However, this perception does not account for the on-the-ground reality.

In a traditional market cycle, anywhere in the world, there is an increase for 3 or 4 years followed by a correction phase when handovers begin, developers pull back the supply, and a physiological drop occurs until the next cycle begins. In Dubai, however, we have broken this traditional cycle. For the first time in human history, a city has created its own cycle. Dubai does not follow conventional market rules, setting new standards instead.

This unprecedented growth requires an equally robust infrastructural response. The absence of proportional infrastructure growth could otherwise hamper the city’s economic potential. Continuous construction and infrastructure expansion are therefore essential to support not only economic growth but also to maintain the city’s global attractiveness.

In conclusion, Dubai is redefining what it means to grow in a modern urban context. With its ambitious economic agenda, the city demonstrates that growth is not just a matter of numbers but of vision and the ability to adapt and respond to the needs of an ever-evolving market. Dubai’s future shines with promises of continuous innovation and sustainable development, and the key to this future lies in the constant construction and expansion of its infrastructure.