Can Dubai and the Gulf ever really recover from what’s happened over the past couple of weeks?
I’m not so sure.
And I say that as someone who’s spent time there. It always felt safe. Stable. Predictable. I’m sure many of our readers have felt the same.
But that perception matters. Once it cracks, it’s very hard to put back together again.
Which means we’re likely to see something important begin to happen: a quiet flight of people, capital and businesses looking for somewhere safer to park themselves.
You can already see early signs of that in places like Hong Kong and Singapore.
But I suspect the ripple spreads much further than that.
Europe will see some of it. The UK too. The US certainly.
And then there’s Australia.
Because if you’re planning to build something like a major data centre… or any kind of critical digital infrastructure…you probably want it somewhere missiles aren’t likely to fall.
Which makes cities like Sydney or Melbourne start to look very attractive indeed.
There’s still a lot to digest from the past few weeks. As always, we’re watching it closely.
Regards,
Sam Volkering
Investment Director, Southbank Investment Research
