Saudi Arabia’s economy grew 8.7 percent in 2022, the highest rate among G-20 countries. The UAE’s economy chalked up a 7.6 percent growth rate last year. As a result, Gulf nationals have seen their wealth balloon.
Dubai was the top-performing luxury residential property market last year, with prices surging 44 percent in value. Riyadh ranked third with prices up 25 percent.
Saudi’s Tadawul and Abu Dhabi’s ADX index were two of the world’s top-performing stock markets last year. Gulf nationals generally have high exposure to their countries’ equities.
Retail investors make up about 67 percent of trading volumes on the Tadawul compared to about 25 percent in US markets. Although Gulf stocks are down this year, they are still high by historic standards.
The dollar is viewed as a haven during times of geopolitical turmoil. Rich Gulf buyers who already have exposure to Europe have turned to luxury US property to diversify their real estate portfolios.
Despite a flood of liberalizing social laws in the UAE and Saudi Arabia, young Gulf citizens are attracted to New York’s lifestyle.