Executive Summary
GCC markets ended October on a positive note, registering an uptick of 1.5%. Smaller markets like Oman and Bahrain have done really well during October followed by Dubai extending its year-to-date gains to 17.5%. Real estate stocks took centre stage once again, driving the ongoing resurgence of Dubai’s equity markets. Dubai’s Real estate sales keep breaching previous records every year since the pandemic, supported by strong investor demand. The momentum in property prices and sales has divided opinion among stakeholders, with some raising doubts over their sustainability, especially in light of the previous downturns observed in 2008 and 2020. The ongoing rally after the pandemic is primarily driven by Dubai’s position as a preferred destination for foreign capital, with investors drawn by its transparency, attractive returns, and tax advantages. Reforms such as the Golden Visa program, removing foreign ownership barriers, and a stable policy environment position the Emirate as a safe-haven destination. Dubai’s real estate stocks hold a significant weight of 27.4% in Dubai’s equity index, which is much higher than that of other regional and global indices, signifying the importance of the real estate sector for capital markets. Regulators have kept several safeguards in place since the 2008 crash, to ensure the growth remains sustainable. However, it is nearly impossible to curb speculative buying altogether, which tends to create froth in the market from time to time.
