Real Estate Bubble & Financial Crisis in Dubai: Dynamics and Policy Responses

Renaud & Associates

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Date Published 2012
Primary Author Bertrand Renaud
Other Authors
Country United Arab Emirates


Dubai experienced one of the world’s most massive real estate bubbles in 2003–2008. This paper examines the dynamics of this bubble. There are several key questions. What were the multiple drivers of Dubai’s bubble? What was the impact of the global financial and economic crisis of 2007–2009 on Dubai’s economy during the bust? Why has the restructuring of Dubai World’s debt and of its real estate companies been a core strategic component of Dubai long-term recovery? Drawing on past international experiences, what are the public and private actions needed to restructure Dubai’s real estate sector? How effective have these measures been so far? What are the prospects for rebalancing Dubai’s economy away from real estate?

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