Dubai, the world’s most expensive city, has no choice but to abandon its massive land holdings and sell them, real estate analysts say.
Dubai’s land is valued at more than $3.5 trillion, which means the emirate can no longer be considered an exporter of wealth and has to take on the financial burden of exporters.
The city is one of the world-renowned property markets, and the emirs have an incentive to sell because they will get more money from foreign buyers.
But if they sell the land, the emiri have to sell it too.
Dubi’s Land Acquisition Commission is now trying to sell the 1,200 hectares (3,300 acres) of land around the Dubai International Airport to foreign buyers, but it faces resistance.
“The land will be sold to foreign investors in exchange for $500m (AU$1.5 billion),” a local official said.
Dubis land is one-third of the airport’s land and its acquisition commission is tasked with buying and leasing the land.
The city has about 700,000 people, and there are about 600,000 homes, including some that are still in the private sector.
The emirates land, which is in a public park, has been under the jurisdiction of the city council since 2011, and has no legal right to be in the airport, the official said, declining to be named because the council has not released its plans.
In recent years, Dubai’s land has been increasingly being leased to foreign companies and private investors, which have to pay a licensing fee, which can amount to millions of dollars, for the right to use the land and to set up businesses on it.
“If they don’t pay that, they can’t use the airport,” said the official, who requested anonymity.
“There is no way to negotiate this with the emisirates government.”
Dubai, a city of just over 7.3 million people, has over half of the Middle East’s population, and is the second-most populous Arab country after Saudi Arabia.
Its capital, the Emirates, is the capital of the Gulf region.
But the emiraas land has long been held by the city, which was founded in 1849 by King Abdul Aziz, and which is now home to nearly 40 million people.
Dubya is a city where residents and tourists are often seen on the streets wearing their distinctive red, white and blue, a symbol of pride for the city.
It is the most expensive country in the world to buy property.
“Dubai is very expensive,” said one of Dubai’s real estate agents.
“But this is the only option, because it is a very expensive country to buy land, but a very cheap one to sell,” he said.
A Dubai official said the emasirates authorities would take a “proper” approach to selling the land but added that the emiris decision “has no legal basis”.