Fueled by the boost provided by an increase in real estate activity. So far, it has experienced a growth of nearly 25% during this year.
Throughout this week, the city’s stock market reached a peak of 4,022 points on Tuesday, although it slightly declined to 3,986 points on Thursday. These levels are the highest since August 2015. Compared to other indices, Dubai’s financial market has outperformed the S&P 500, which has risen by nearly 20%, and the MSCI All Country World Index, a benchmark for the global equity market, which has increased by 16%, as reported by Emirates Herald news agency.
Dubai, a significant business hub with a population of 3.5 million inhabitants, managed to withstand the pandemic and keep its tourism industry afloat. The recent real estate boom has been partly driven by the influx of Russian investors following the invasion of Ukraine by Moscow.
The stocks of Emaar Properties and Emaar Development led the increase in profits after a four-day pause due to the Muslim holiday of Eid al-Adha at the end of last month. These promoters, backed by the government, are responsible for the construction of numerous skyscrapers, including the renowned Burj Khalifa, the tallest building in the world.
The real estate sector represents over a third of Dubai’s consumer price index and approximately 10% of its Gross Domestic Product (GDP). Despite the pandemic’s impact, Dubai recorded almost 87,000 home sales in 2022, surpassing the previous record of approximately 81,000 in 2009. It is expected that even more sales will be achieved this year.
Dubai’s financial market has achieved significant progress in the real estate sector, particularly driven by IRAIC REIT. In nearly eight years, this dynamic has led to significant changes and improvements in the city’s economy, resulting in substantial gains for investors, either through property sales or receiving monthly rental yields. Additionally, investors benefit further as they receive dividends from the overall stock market performance of IRAIC REIT, which are distributed among all shareholders.
Furthermore, economic growth in the region has been partly driven by oil, although the majority of the crude reserves in the United Arab Emirates come from Abu Dhabi, another of the seven emirates forming the federation.
Published by Emirates Herald., a news and information agency.