UAE Prosperity Has Direct Impact on Dubai Property Market

The UAE has just been listed as the most prosperous nation in the Middle East and North Africa (MENA) in a report that looks at social and economic well-being.

The 2012 Legatum Institute Prosperity Index placed the UAE 29th in the world, out of a total of 142 countries which were assessed. The next country from the MENA in the rankings was Kuwait in 38th followed by KSA in 52nd.

As the UAE continues to grow in the eyes of the international community, more attention will be drawn back to the Dubai property market which has proved an integral component of the emirates perception around the world. As the market grows, the more favourably Dubai is seen by the global community, and vice-versa.

For a country with a current population of just eight million it is a great achievement to grow in the league tables so dramatically and in such a short period of time.

The economy of the country was the most favourable with a ranking of 17th in the world. Given this, HSBC’s Senior Economist Simon Williams told Gulf News that the UAE still has a way to go: “Given that the UAE has one of the wealthiest GDP’s per capita in the world, this tells you how far the UAE has to go to close the gap between potential and reality.”

Pretty stark words, but a reflection that while Dubai and the UAE has achieved a great deal in its 40 year existence it is not sitting on its laurels and there is still a way to go to realise the opportunities which are abound.

As the economies of the east and the west come closer together, Dubai as a regional hub and influential trading stop off will have ever more international influence.

All of this drives what is still a relatively immature property market and will continue to attract more overseas investment.

The report also shed light on to the UAE’s entrepreneurship opportunities, ranking the country in 30th place, 41st for governance, 37th for education, 32nd in health services and 42nd in social capital which looks at the family and society support.

On a more macro perspective the countries in the MENA region improved their performance in the Entrepreneurship and Opportunity sub-index over the last three years, with the second largest improvement behind Asia.

The report concluded by stating that the improvements: “are partly due to a decrease in start-up costs [which] have decreased throughout the [MENA] region.”

Do reports matter? Where can the UAE realistically hope to be on the chart in five years? We would love to hear your thoughts on this and any other news on Dubai Property Invest. And don’t forget to also join us on Twitter @dxbpropinvest

Be Sociable, Share!

Leave a Reply

Your email address will not be published. Required fields are marked *