The hosting of the football World Cup in Qatar this year is set to boost the Dubai property market, providing a ‘mini-Expo like effect’, industry experts say.
The market has been booming during the past year on the back of the wider economic recovery in the UAE following the coronavirus-induced slowdown. This momentum is expected to continue amid record transaction levels in recent months, experts say.
The start of the football tournament in Qatar in November is set to provide a further impetus, they say, with many fans choosing to stay in the UAE between matches.
"I’m incredibly optimistic that the World Cup is going to be a mini-Expo opportunity," Scott Bond, UAE country manager for Property Finder, told The National.
"The World Cup is shorter [than Expo] but there is a large population who want to come to Dubai and then go and experience the World Cup, so they can come here and can feel the attributes of the UAE, such as the weather and beaches, safety and spread their wings a bit. That is going to shine a light here.
"In terms of the long-term effect of the World Cup, that is a bit of an unknown, but anything that shines a light on how great this area is can be positive for the market."
Dubai property prices, which declined slightly on a monthly basis in summer, bounced back in August and rose by 1.24 per cent on average, Property Monitor said.
In terms of transactions, it was a record August and the highest monthly figure seen since 2009, with residential sales transaction numbers reaching 8,882, it said.
Overall, in the first eight months, there were just under 60,000 transactions registered in Dubai, 88.4 per cent of which were residential, marking an annual increase of 59 per cent and equal to 97.8 per cent of the entire annual transaction volume of 2021, the report found.
The prime market, in particular, has had significant price rises in the past 12 months amid an influx of high-net-worth individuals and the success of the UAE's golden visa programme.
Rising rents in the city are also leading tenants to purchase property despite interest rates continuing to increase, online portal Mortgage Finder reported.
Average apartment rents were up by 24.9 per cent year on year in August, while average villa rents increased by 24.2 per cent, CBRE said.
The strength of the Dubai market comes against a backdrop of global instability, which is working in the emirate's favour, Mr Bond said.
"It’s a time of uncertainty in some areas of the world and people will be coming in from experiencing 10 or 12 per cent inflation in their homeland, their energy bills have increased by three or four times," he said.
"This is still a part of the world where you can get more for your dollar compared to other major cities.
"The government continues to make great decisions on friendly policies on why you should invest here against a backdrop of record inflation elsewhere in the world and supply chain issues."
A shortage of accommodation in Qatar has led to football fans seeking either hotels in the UAE or short-term rentals. There is also interest from potential buyers looking to invest and then rent out their property during the tournament.
"We are seeing an uptick in interested investors who are looking to buy property in prime areas so they can put them up for rent — short-term rentals have been huge across the city, and that segment of the market is expected to perform extremely well over the World Cup period," said Mark Castley, chief operating officer at LuxuryProperty.com.
"In terms of end users looking to move into a new home, that hasn't seen any additional traction as a result of the World Cup — it's definitely something that's more for investors and tenants."
The effects of the World Cup being hosted in the region are already being felt in the short-term market, with many tenants unable to find any availability, Mr Castley said.
"Anything that is available on the market now is commanding a huge premium.
"We will see a knock-on effect from short-term to long-term rentals, as there is going to be a sizeable drop in stock over the next few months, which will push prices up further over the medium term. This, in turn, will push tenants at the top end of the market towards buying a property instead."
Rentals costing upwards of Dh1 million ($272,294) are being witnessed on Palm Jumeirah, Mr Castley said.
"At that point, it just makes sense to put in a down payment and jump into the sales market."
The accommodation in Qatar ranges from designated fan camps in temporary housing units 40 minutes outside of the city, to cruise ships docked in the glittering West Bay, city hotels and Airbnb-style options. Many are expensive or already booked up.
As such, the UAE has become an attractive option for fans, with Air Arabia and flydubai operating a combined total of 45 daily shuttle flights from Dubai and Sharjah into Doha.
Tourism will already be at its peak in Dubai amid the cooler weather and hotels expect to be close to full capacity in the final months of the year.
"Investors are seeing this as a key opportunity to purchase investment properties," Tommy Burden, luxury client manager at Prime by Betterhomes, told The National.
"I've had a big increase in inquiries from clients asking about villas and apartments to purchase for long and short-term rent — the World Cup has expedited this demand."
Prime areas such as Palm Jumeirah and Dubai Marina, given their proximity to the beach, social amenities and access to the airports, are likely to benefit the most, he said.
The biog
Birthday: February 22, 1956
Born: Madahha near Chittagong, Bangladesh
Arrived in UAE: 1978
Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.
Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Motori Profile
Date started: March 2020
Co-founder/CEO: Ahmed Eissa
Based: UAE, Abu Dhabi
Sector: Insurance Sector
Size: 50 full-time employees (Inside and Outside UAE)
Stage: Seed stage and seeking Series A round of financing
Investors: Safe City Group
Friday's schedule at the Etihad Airways Abu Dhabi Grand Prix
GP3 qualifying, 10:15am
Formula 2, practice 11:30am
Formula 1, first practice, 1pm
GP3 qualifying session, 3.10pm
Formula 1 second practice, 5pm
Formula 2 qualifying, 7pm
Racecard
6pm: The Pointe - Conditions (TB) Dh82,500 (Turf) 1,400m
6.35pm: Palm West Beach - Maiden (TB) Dh82,500 (T) 1,800m
7.10pm: The View at the Palm - Handicap (TB) Dh85,000 (Dirt) 1,400m
7.45pm: Nakeel Graduate Stakes - Conditions (TB) Dh100,000 (T) 1,600m
8.20pm: Club Vista Mare - Handicap (TB) Dh95,000 (D) 1,900m
8.55pm: The Palm Fountain - Handicap (TB) Dh95,000 (D) 1,200m
9.30pm: The Palm Tower - Handicap (TB) Dh87,500 (T) 1,600m
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
First Person
Richard Flanagan
Chatto & Windus
