Dubai, UAE- 4 March 2026: Kuwaiti economist and founder of Al-Wathiqa Regional Real Estate, Abdulrahman Al-Husseinan, highlighted the strength of the UAE’s real estate market, describing it as one of the Gulf’s most resilient markets in absorbing geopolitical shocks, thanks to its diversified investment base and openness to global capital flows.
He explained that the emirates of Dubai and Abu Dhabi have, in recent years, reinforced their status as regional and global hubs for business, residency, and investment, supported by advanced legislative frameworks, regulatory flexibility, and high-quality developments across the luxury residential, tourism, and mixed-use sectors.
He added that market data through the end of 2025 indicate continued momentum in real estate transactions across Dubai and Abu Dhabi, driven by strong foreign demand and financial stability. This reflects the strength of the country’s economic fundamentals and the UAE market’s ability to navigate geopolitical challenges while maintaining solid performance.
Al-Husseinan concluded by emphasizing that the UAE’s experience in managing real estate market cycles, alongside the diversification of its non-oil economy, has strengthened the sector’s resilience and sustained attractiveness during periods of uncertainty. He noted that investors increasingly view Dubai and Abu Dhabi as relatively stable investment havens within a volatile regional environment.
Al-Husseinan also noted that the current geopolitical developments in the Middle East cannot be viewed in isolation from the broader economic landscape of the Gulf Cooperation Council (GCC). He explained that the region’s real estate markets are directly influenced by such developments, given the strong interconnection between local economies and cross-border investment flows.
Al-Husseinan said that the Gulf economy today is open and highly interconnected. It is no longer an isolated local market, but rather an integrated investment system whose effects extend across all GCC countries. He noted that available data indicate total real estate transaction values across the Gulf exceeded $380 billion by the end of 2025, with continued growth expected across residential, investment, and commercial segments in the coming period.
He explained that this interconnection links the impact of political developments to investor expectations, particularly in terms of increased demand for safe real estate and other fixed assets compared with higher-risk investments. He added that the real estate sector contributes between 15% and 18% of GDP in some GCC countries.
Al-Husseinan noted that the current impact is more evident in market sentiment rather than in strong economic fundamentals. He emphasized that the supply-demand gap remains contained in many Gulf markets thanks to liquidity, financial solvency, and sustained domestic demand supported by rising income levels and increasing urban development rates.
He stressed that political and security stability remains the decisive factor in restoring full market activity. However, he clarified that the region is not facing an economic collapse or weakened real estate fundamentals. Rather, it is experiencing a calculated phase of reassessment and cautious anticipation by investors. He expects the impact to remain short-term unless geopolitical tensions persist for an extended period.
As Told to Emirates Reporter with Supplied Image
