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Wealth in Dubai grows by Dh143 billion to nearly Dh2 trillion

Dubai - Thanks to its successful handling of the Covid-19, the city’s attraction has balloon substantially since the outbreak of the pandemic

Dubai residents became richer by $39 billion (Dh143 billion) during the past year, reaching approximately Dh2 trillion at the end of June 2021.

According to the New World Wealth report released on Wednesday total wealth held in the city amounted to $530 billion (Dh1.94 trillion) at the end of June 2021 as compared to $491 billion (Dh1.8 trillion) at the end of the same period last year.

Thanks to its successful handling of the Covid-19, the city’s attraction has balloon substantially since the outbreak of the pandemic.

Real estate industry executives have revealed to Khaleej Times that a large number of ultra-high net worth individuals have been scouring the market for the past one year to mop up high-end properties which were selling at an attractive rate following the drop in prices for the past seven years. As a result, many millionaires have moved to Dubai from the other cities which were badly hit by the pandemic.

The latest data from Property Finder showed that Dubai recorded in June the highest real estate sales transaction volume since December 2013 with 6,388 deals worth Dh14.79 billion, taking the January to June total deal value to Dh61.97 billion. In total, the property market recorded a 40 per cent jump in sales transactions during the first half of 2021, reaching Dh61.97 billion.

The first half of 2021 also saw a Dubai villa being let a record Dh3.8 million on Palm Jumeirah. Similarly, a villa on the Palm Jumeirah was sold for a staggering Dh111.25 million, making it the most expensive property sold in Dubai this year. This reflects that big-ticket assets are in strong demand in the emirate.

The New World Wealth study found that Emirates Hills, the Jumeirah Golf Estate and the Palm Jumeirah are the top three neighbourhoods in the emirate where most of the millionaires and billionaires reside.

Maintaining its status as the wealthiest city in the Middle East and Africa (MEA) region, the emirate was ranked 29th wealthiest city globally, it said.

The emirate is home to just over 54,000 HNWIs at the end of June 2021 as compared to 49,400 at the end of June 2020 and 12 billionaires as against nine billionaires in the same month.

Most of the wealthiest people living in Dubai have interests in financial services, basic materials, oil and gas, transport, hotels, retail and real estate.

— waheedabbas@khaleejtimes.com