Dubai’s Economy Needs More Than Luxury Real Estate Deals
Dubai's focus on the luxury construction sector is a narrow, risky strategy that is uncomfortably similar to past economic crashes.
Contributor
Frederic Schneider is an economist and consultant on labor and human capital issues regarding Gulf countries’ transition to a post-oil economy. He provides policy analysis and advisory for institutions including the London School of Economics, Washington Institute for Near East Policy, Anwar Gargash Diplomatic Academy, and School of Oriental and African Studies.
Dubai's focus on the luxury construction sector is a narrow, risky strategy that is uncomfortably similar to past economic crashes.
Oil continues to be crucial to Gulf states, but sovereign wealth funds may be able to close the gap left by an eventual end to fossil fuel resources, if a fiduciary-focused fund management culture can be instilled.