UAE billionaires optimistic about foreign investment despite eight months of war

At Bloomberg’s Invest Dubai conference on Thursday, Blackstone executives said the firm had deployed more capital in the region in the last year than ever before. UAE officials and billionaires had a unified message to foreign investors today: After eight months of conflict, the country has emerged as an even more attractive destination for global capital. They can be forgiven for talking up their own book, but foreign investors seem bullish too.

At the Bloomberg Invest Dubai conference on Thursday, Blackstone executives said the firm had deployed more capital in the region over the past year than ever before, and opened a DIFC office for its growing private wealth business. Meanwhile, PIMCO highlighted opportunities to finance infrastructure projects. UAE Investment Minister Mohamed Hassan Alsuwaidi said the country plans to draw more foreign capital into energy, industry, infrastructure, AI, and logistics. He also pointed to shortages of offices and warehouses as opportunities.

Real estate has gone through multiple boom-and-bust cycles over the past two decades, but when viewed over the long term, the trend line has clearly been up. Mohamed Alabbar, founder of Emaar Properties — which built the world’s tallest skyscraper — was characteristically upbeat. The developer recently unveiled a $3.3 billion business district at Dubai Creek Harbour, with 300,000 square meters of commercial space. And while the war has taken a toll on its hotel business, Emaar’s hospitality unit was able to boost profits last quarter by cutting costs.

While acknowledging rising costs, he dismissed concerns. Alabbar acknowledged rising construction costs, but dismissed concerns that the property market was set for a sharp decline. Though the eight-month Iran conflict was a test, he acknowledged, “I would say that if there was a bubble, it would have burst.”