Why Middle East is becoming the new global capital of luxury and investment

Across the Gulf, a new chapter is unfolding — one defined by confidence, capital, and culture. Once seen as an emerging market, the Middle East has evolved into one of the world’s leading hubs for luxury, lifestyle, and legacy investment. From Dubai’s record-breaking property boom to Saudi Arabia’s Vision 2030 mega-projects, the region now sits at the crossroads of ambition and affluence. For global investors, it represents not only strong returns but also a long-term shift in how — and where — wealth is built and enjoyed.

Dubai-based investor and entrepreneur John Hanafin has spent decades advising global families, entrepreneurs, and institutions on luxury asset investment, cross-border structuring, and global lifestyle strategy. In this conversation, he shares why the Middle East is redefining global luxury, where the next opportunities lie, and how investors are turning passion into performance.

The Middle East has undergone a dramatic transformation in recent years. How do you define this new phase of growth?

The region has moved from an emerging market to a leading one — not just in energy or finance, but in luxury, culture, and lifestyle investment. What we’re seeing now is a sense of maturity and confidence. There’s capital, creativity, and long-term vision all working together. The Gulf is no longer following global trends; it’s setting them.

Dubai remains the region’s most visible success story. What makes it such a magnet for global wealth?

Dubai’s luxury real estate has become the new Swiss banking system. It offers stability, discretion, lifestyle, and capital appreciation — all within a single ecosystem. Investors from London, Lagos, Hong Kong, and New York are treating it as a lifestyle base as much as an asset play. When you combine that with no income tax, long-term residency, and access to world-class education and healthcare, it’s a complete proposition.

The numbers are remarkable — but what’s driving that continued surge?

Confidence and scarcity. Real estate transactions reached nearly Dh327 billion in the first half of 2025, up 40 per cent year-on-year. Prime areas like Palm Jumeirah and Dubai Hills continue to appreciate at 15–20% annually. Branded residences from names like Bugatti, Bvlgari, and Baccarat now command global waitlists. People aren’t just buying property; they’re buying into a lifestyle ecosystem that’s secure, connected, and future-focused.

Saudi Arabia’s Vision 2030 has captured global attention. How do you see its role in the region’s luxury evolution?

Saudi Arabia is the new frontier of luxury and vision. What’s happening there is nation-building on a grand scale — NEOM, AMAALA, The Red Sea Global — each project integrating sustainability, innovation, and ultra-luxury design. It’s attracting global talent and investors who want to be part of something foundational. It’s not just about mega-projects; it’s about creating a lifestyle economy from the ground up.

Beyond property, where else do you see strong momentum in luxury investment?

Luxury collecting has become an asset class in its own right. We’re seeing a convergence between passion and performance — classic cars, fine art, watches, and gemstones are now integral to wealth strategies. In Dubai, watch auctions rival Geneva, car collections outshine Monaco, and galleries are collaborating with major international names. Investors are increasingly driven by legacy and emotion, not just yield.

What gives the Middle East a sustained competitive advantage over other global hubs?

A unique mix of stability, efficiency, and accessibility. There’s no personal or capital gains tax, long-term visas are available, and the strategic location connects investors to 70 per cent of the world’s population within seven hours. The leadership here prioritises growth and innovation, and that consistency builds trust. Add a vibrant cultural calendar — from Art Dubai to F1 Abu Dhabi and Riyadh Season — and you have a magnet for global talent and capital.

Why is now the time to act?

Global markets are fragmenting, but the Middle East is consolidating strength. Over the next five years, the region will define a new chapter in global wealth creation. Dubai and Riyadh aren’t just safe havens anymore; they’re engines of growth, blending sustainability, culture, and innovation into the future of living. For investors, it’s an opportunity to build both prosperity and permanence — to create legacies that last.