Dubai’s property market could experience a period of reduced activity following Iranian missile strikes on the UAE, the founder of one of the country’s largest developers has said – though he insisted that investors with genuine capital would remain committed to the market.
Mohamed Alabbar, founder of Emaar Properties, the company behind the Burj Khalifa, told CNBC’s Dan Murphy that while “there could be a bit of a cooldown, but I really don’t see it.” He attributed this confidence to the structure of the local market, noting that “bank borrowing is really restricted in this market.”
“Consumer confidence will be shaken a little bit, but as I said, the policies of this country bring the confidence back so fast,” he said.
Dubai Mall footfall rebounds to 190,000 daily after Iran missile strikes, Emaar founder says
Alabbar’s comments came on the sixth day of an escalating conflict in the Middle East, in which the UAE has been struck by retaliatory attacks from Iran following US and Israeli strikes against Tehran on Saturday.
Dubai’s airport, one of the busiest in the world, was among the sites hit, causing disruption to flights. Hotels and ports around the country were also targeted.
“I was surprised, and I was shocked,” Alabbar said of the strikes. “But people with true capital understand that a country like this, with stable leadership and the safety it has shown, can deliver. They will double down on this.”
Alabbar said life was beginning to return to normal, pointing to footfall figures at Dubai Mall – owned by Emaar Properties and located adjacent to the Burj Khalifa – as evidence of recovery. Daily visitor numbers had reached 190,000, compared with a pre-conflict figure of 250,000.
“The number of customers that come to our restaurants, our numbers are close to about 80, 85%, and it has been only four days, five days,” he said. “Life is coming back to normality.”
When asked why Iran had chosen to strike the UAE, Alabbar said: “This is the global business hub… what prosperity should be, what positivity should be, is this place.”
“So I think it’s only natural that… people who have no respect for progress, no respect for good quality of life, they probably feel that this is one of their targets. But thank God, that won’t happen,” he added.
This article is based on reporting by CNBC.
