Dubai Real Estate 2025: How Global Tariffs Are Shaping Investor Strategies

Global Trade Disruptions and UAE Exposure

The introduction of heightened trade tariffs by the United States—reminiscent of past protectionist policies—is expected to unsettle global supply chains, including construction and raw materials vital to real estate development. Markets that rely heavily on imported construction inputs, such as steel, aluminum, and wood, may see temporary price increases or sourcing challenges as suppliers reassess cost structures.

However, the UAE's open economic model, bolstered by free zones and tariff-exempt trade agreements with multiple partners, offers a mitigating buffer. In contrast to more import-reliant jurisdictions, Dubai's position as a re-export hub through Jebel Ali Free Zone (JAFZA) and other logistics corridors may serve to insulate developers from sustained cost volatility.

Supply Chain Realignment and Emerging Opportunities

Global manufacturers and construction-related businesses may seek to pivot production and distribution networks toward the Gulf, where ease of doing business, favorable regulation, and strategic logistics infrastructure remain strong. The UAE’s advanced digital customs platforms, AI-enabled port operations, and free zone incentives—like 100% foreign ownership—are expected to attract firms looking for tariff-free access to new markets.

As a result, real estate development pipelines across the UAE could benefit from cheaper materials over the medium term as alternative suppliers emerge and demand stabilizes. The market is likely to see temporary slowdowns in some construction timelines but could benefit from more competitive tendering conditions as global supply chains recalibrate.