Dubai Waterfront: A City Built Along the Sea
    Market AnalysisApril 7, 20053 min read

    Dubai Waterfront: A City Built Along the Sea

    Plans for a vast waterfront development south of Jebel Ali envisage a new city with canals and islands. How buyers should weigh such long-term visions.

    Chief Economist

    PhD from London School of Economics. David's macroeconomic forecasts have guided institutional investors through three market cycles in the Gulf region.

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    Dubai's ambitions for new waterfront continue to grow. Plans for a vast waterfront development south of Jebel Ali envisage a new city along the sea, with canals, islands, residential districts and commercial centres. If realised, it would add an enormous amount of coastline and create a new urban area larger than many existing cities.

    The vision

    • A crescent of islands and canals creating extensive new waterfront.
    • Residential districts for a large future population.
    • Commercial and business centres to provide jobs.
    • Leisure and tourism facilities along the coast.

    Why build so far south

    The area south of Jebel Ali is far from today's centre, but it sits on the path of Dubai's growth towards Abu Dhabi and close to plans for a new airport and logistics hub. As the city expands, this region could become a major centre in its own right.

    The long-term nature of the project

    A development of this size will take decades to complete. Early phases will be surrounded by empty land and construction, and infrastructure will need to be built from scratch. The success of the project depends on the growth of employment in the surrounding area.

    What buyers should consider

    Buyers should focus on the specific phase they are purchasing, its expected completion and its connections to roads and services. They should also consider how many homes will be delivered in the wider area over the same period, and whether demand will keep pace.

    The risk of distance

    Properties far from established centres can take a long time to attract residents and tenants. Without jobs nearby, they may depend on long commutes, which reduces their appeal. Investors should be realistic about how long it will take for the area to mature.

    Our view

    The waterfront vision shows the scale of Dubai's long-term planning. For most investors, it is a project to watch rather than to commit to heavily at this stage, until the surrounding infrastructure and employment are clearer.

    Dubai WaterfrontMaster planningLong-term projects