Oil Price Hurt #Dubai’s Economy, But Malls Are Still Getting Built - Bloomberg

Oil Price Hurt Dubai’s Economy, But Malls Are Still Getting Built - Bloomberg:

A desert city of gleaming skyscrapers and wealthy foreigners accustomed to packed, air-conditioned shopping malls, Dubai has developed an unexpected problem in recent years: empty storefronts.

This 1,600-square-mile oasis of commerce has dozens of malls where visitors can shop while keeping cool. The fancier ones boast marble corridors lined with luxury retailers and restaurants. Huge movie theaters, electric vehicle charging stations and health clinics are among the offerings meant to keep consumers inside and spending. At Dubai’s top-tier “destination” malls, there’s even an aquarium and an indoor ski slope.

But in the five years since oil prices fell from three-digit highs, this metropolis has been hurting. Its breakneck pace of commercial and residential development outstripped demand, and a strong dollar has made everything more expensive. Property prices across the United Arab Emirates have declined by about 27% since 2014, and the U.A.E.’s annual growth rate is now below 2%.