Beyond the mirage

Dubai has lost some of its lustre, and its slide has taken many by surprise. Up until six months ago, growth showed no signs of abating, so the sudden shift in sentiment has come as a shock. ‘From November, Dubai began to suffer from the bursting of the real estate bubble, and the quasi-government organisations ran out of money,’ says Nick White, resident managing partner in Trowers & Hamlins’ Dubai office. ‘When some investors wanted to withdraw from the market, the result was a catch-22: investors weren’t paying; developers weren’t getting the money; and they didn’t have access to project finance to carry on.’

Dubai has attracted a number of international law firms and secondees, with its strong ex-pat community allowing for a smooth transition into the Middle East – something that a number of other jurisdictions in the region have not yet achieved.

But with traditional banking and projects work on the wane in Dubai, other centres in the Middle East are coming to the fore, and lawyers are being forced to reassess and make more pragmatic choices. Peter Gosden, managing director at recruitment consultancy JD Legal says: ‘Now that Dubai has quietened down, people are saying, even at partner level: “I’d prefer to be in Abu Dhabi or Doha where the markets are less developed and less lawyered.” As opportunities dwindle in the UK, people are coming round to the idea.’

To read the rest of this article subscribe to Legal Business.