The founder of Emaar Properties, Mohamed Alabbar, says Dubai’s real estate market continues to show strong resilience despite rising geopolitical tensions and global uncertainty.
Speaking in an interview with CNBC, Alabbar noted that investor confidence in the emirate remains high thanks to long-term development strategies and the country’s stable political and economic environment.
According to him, consistent policies and economic stability over many years have helped transform Dubai into one of the world’s key destinations for global capital.
“It's the global business hub, and its success, its limelight, its reflection of what life should be and what success should be, what prosperity should be, what positive you should be is this place,” Alabbar said.
He added that attempts to undermine the city’s success are unlikely to succeed.
“So I think it's only natural that people who basically hate life and people who have no respect for progress, they have no respect for good quality of life, they'll probably feel that, you know, this is probably one of their best targets, but thank God that won't happen.”
Confidence in the UAE’s stability remains strong
Alabbar acknowledged that during periods of geopolitical tension, speculation and fear can easily spread through social media. However, he stressed that the UAE’s long-term track record tells a very different story.
“Well, unfortunately, sometimes social media naturally takes its own direction and its own toll in any situation,” he said.
According to him, anyone studying the country’s development path will see a clear pattern of consistency and stability.
"What I want to tell you is that if you were to look and study the trajectory of UAE policies, you will see consistency, you will see sustainability, you will see wisdom, you will see stability.”
He emphasized that such a system could not have been built overnight.
“That you couldn't build this over one year, two years. It took us over 40 years for the leadership to establish this,” he said.
Recent events, he added, have only reinforced the perception of safety in the country.
“We know that this country has great infrastructure, great business regulation, great healthcare, education, tourism, all that, and we know that we are safe, but also the past days have proven that we are really safe.”
“I promise you what happened will only strengthen what this country is all about.”
Capital continues flowing into the UAE
Following global crises such as the pandemic and the war in Ukraine, some analysts suggested that capital that had moved into the UAE might begin to leave. However, Alabbar says the data suggests the opposite.
He pointed to the strong growth of his own real estate business.
“If you were to look at the past two years, just look at our business, the real estate business alone, we had an increase of almost 70% in 2023, we had 40% in 2024, we have another 40% in 2025,” he said.
Such growth, he explained, does not happen by accident.
“That volume of increase does not come out of the blue and success, it doesn't happen by luck. It's because of years of great policies and stability and confidence and fairness that exists in this country.”
The UAE’s handling of the COVID pandemic also strengthened international trust in the country.
“Policies of dealing with covid have pushed this tremendous belief in this country and what the future holds,” he said.
According to Alabbar, experienced investors clearly understand these fundamentals.
“Smart capital understands that a country like this, with all these principles and stable leadership and the safety that it has shown that it can deliver.”
As a result, many investors are not pulling back but instead increasing their commitments.
“People with true capital understand this and they appreciate this and they will double down on investing anyway.”
Property demand remains strong
Despite discussions about a possible slowdown in the market, Alabbar said demand for property in Dubai remains solid.
He even shared his own recent experience while searching for an apartment in the city.
“Myself, I'm looking for one building, one apartment overlooking the sea that I didn't buy in, and the past two days I've been looking and it seemed like nobody want to budge. Nobody want to give a discount,” he said.
In his view, this reflects a market where sellers remain confident.
“No, I'm not concerned at all,” Alabbar said.
He acknowledged that consumer confidence may temporarily weaken during periods of uncertainty, but government policies quickly restore it.
“Consumer confidence will be shaken a little bit, but the policies of this country bring your confidence back so fast.”
Forecasts of a price correction are unrealistic
Some analysts have warned that Dubai’s property market could face a correction as new supply enters the market. For example, Fitch Ratings suggested that prices could decline by up to 15%.
Alabbar disagrees with that assessment.
“I know my business well. I know the banking, I know the business environment, because I operate in multi industries,” he said.
He also highlighted the strict discipline of the banking sector and continued improvements in government policies.
“The banking system is so strict, amazing discipline. Government policies are just getting better and better. I have no concerns.”
When asked directly whether a 15% correction was realistic, he was clear in his response.
“In my opinion, the way I do, the way I look at my business and listen, I look at so much data, I think it's very unrealistic.”
New supply could strengthen the market
Dubai is preparing for a wave of new property supply expected in 2026 and 2027. According to Alabbar, this additional inventory could actually benefit the market.
“I said this a year ago. The supply that's coming in in 2026 and 2027 will be good for the market,” he said.
He stressed that developers are focused on long-term business rather than short-term gains.
“We are not here for the short run. We are here for a long time to do business.”
Rapid price increases, he warned, are not healthy for the city’s economy.
"Jacking up prices too high doesn't benefit anybody.”
Instead, he prefers a market with gradual and sustainable growth.
“I'm in the mid up market that goes up every year by 5% or 6%.”
A balanced market benefits both investors and residents
Additional housing supply could also ease pressure on rental prices and help maintain Dubai’s competitiveness as a global city.
"We don't want rental to be too high. We don't want property prices to be too high. I think it's against economic progress,” he said.
Alabbar also noted that real estate plays a major role in inflation.
“Real estate values contribute to almost 50% or 52% of inflation.”
Maintaining a balanced market is important so that the city remains attractive both for investors and for professionals relocating for work.
“We don't also want investors and people who come here for their jobs to really feel that the city is too expensive.”
The key goal is long-term stability
According to Alabbar, the main objective of Dubai’s real estate sector should be stability rather than aggressive price increases.
“Developers are making enough money with these prices. We should not shoot too high.”
He believes balanced growth will help preserve Dubai’s attractiveness as a place to live, work and invest.
“I want stability. I want long term,” he said.
Even if the market adjusts slightly due to new supply, it would not threaten the broader economy.
“I think it's stable enough,” Alabbar said. “I want stability and long-term progress for the city.”