Dubai in top-5 ‘global cities that matter’

Dubai has jumped three places to be ranked fifth in the list of “global cities that matter”, making it an important hub for wealthy individuals, according to Knight Frank Wealth Report 2016.

The emirate, placed eighth in 2015 survey, has outperformed major cities such as Shanghai, Paris and Sydney.

The geographical location of the emirate makes it accessible to 1,500 ultra-high net worth individuals (UHNWIs) within a two-hour flight.

“Over the last decade, Dubai’s economy has evolved significantly on the back of modern infrastructure and business-friendly regulations,” said Dana Salbak, Head of Mena Research at Knight Frank.

“The city has emerged as a global hub for financial services, logistics, hospitality and trade, making it a popular destination for people to live, invest, educate their children, network and spend their leisure time.

“The continued commitment to diversify Dubai’s economy and develop its infrastructure and logistics sector, (through investments in Emirates airlines, Dubai Airports and Ports), in addition to enhancing the city’s tourism offerings (with the delivery of various theme parks) has increased its global appeal,” she added.

Besides, investments in education and healthcare is as well solidifying the city’s position as a leader in alternative sectors.

London and New York took the top two positions on the list of most important cities. Paris tops the list as the most accessible city to the wealthy based on travel time, with more than 16,900 UHNWIs living within two hours of the city.

# Mega projects

One of the biggest projects under construction here in the emirate is the airport expansion.

The Dubai Airports website states that the Al Maktoum International Airport will have a total of five parallel runways, 4.5 kilometre long, each separated by a minimum of 800 metres with the central terminal area (of the main terminal) incorporating basements that will house a fully automated baggage handling system capable of handling around 240 million bags per annum. The costs for the entire Dubai South (formerly Dubai World Central), including all clusters, is estimated in excess of Dh120 billion ($32 billion).

Construction is set to commence soon on the Expo 2020 pavilions and Dubai Metro Route 2020, which will extend from Nakheel Harbour and Tower to Expo 2020 venue.

# Affordable real estate

When it comes to buying real estate, Dubai is far more affordable city than many global cities.

Vancouver topped the chart of the highest hikes seen in 2015 with 24.5 per cent followed by Sydney and Shanghai with 14.8 per cent and 14.1 per cent, respectively. Dubai, however, slipped 5.5 per cent, ranked 96th among the 100 cities tracked by the consultancy. Abu Dhabi was ranked 75th, with prices declining 2 per cent.

Despite many international and local consultancies predicting property prices to decline in 2016, they do believe the market will start to recover in 2017 as infrastructure work surrounding the Expo 2020 gets under way.

Follow Emirates 24|7 on Google News.