Manmade or natural, disasters affect the real estate and construction sectors where investor sentiments are concerned.
They can be impacted positively, as is evident in the stoic reconstruction and rehabilitation in north-east Japan, adding another chapter in the circle of life.
The Middle East and North Africa (Mena) region has over 300 million people, and they come with all the needs of a young and diverse population. There is also an immigrant workforce that add its own flavour. These attributes give policymakers, private developers and real estate professionals in Abu Dhabi and Dubai greater room for manoeuvre.
As is the case in Japan, there is an opportunity for the two emirates to be patient and look at every crisis as an opportunity. Since the global economic downturn, the UAE has emerged with a stronger federal identity.
Greater good
The UAE is learning to leverage its legacy, demographics and geography for the greater good of the region's economy on the macro level.
The Standard Chartered Bank funded its new Dubai headquarters to avert multiple strata-ownership after over two years of unsuccessfully searching for office space.
Despite falling prices and 40 per cent of Dubai's office space being empty, there are valid reasons for Standard Chartered to becoming the master of its own property here.
The bank's move may prompt urgent rethinking both in the structure of Dubai's own Strata Law and its enforcement vis-à-vis Abu Dhabi's, which allows residents associations to co-manage and thus circumvent the non-local ownership issue.
More than eco-tourism, what Abu Dhabi and Dubai offer through cultural projects is a haven for the world's nomads.
In contrast to the changing welfare states in austerity-driven and ageing Europe where these nomads hail from, the UAE promises jobs, homes and fun for the young. They thus create the market for world-class entertainers to head to the UAE.
The government is anxious to make living as pleasant and affordable for the new global nomads and create a culturally assimilated society.
This is a win-win situation for all, as a good and secure life is on offer in two world-class cities.
While the road ahead will have its share of practical daily difficulties, Abu Dhabi and Dubai are role models of global cities. Equally, there are other lessons that can be absorbed.
Other traditional havens such as Morocco or Doha add to variety as the spice of life. The difference is that the UAE has now become truly livable and affordable for the mid-income global nomads.
The writer is director for valuations and research at Chesterton International.
