UAE’s Removal from Watchlist Paves the Way for Real Estate Growth
3 June 2024
The UAE’s recent removal from the Financial Action Task Force‘s (FATF) financial crime watchlist will be a catalyst for economic expansion, particularly in Dubai’s real estate sector, attracting heightened foreign direct investment and institutional funds, according to industry experts.
The FATF, an international body dedicated to combatting financial crime, decided to delist the UAE from its grey list, marking a significant milestone in the nation’s efforts to enhance its anti-money laundering and counter-terrorism financing measures.
Growth Ahead
Dean Charter, COO of Dubai’s Paragon Properties, said: “The UAE’s removal from the FATF’s grey list will be a catalyst for increased economic growth across the UAE, with Dubai real estate set to benefit with immediate effect.”
Charter highlighted the potential for a surge in direct foreign investment, particularly from large institutional funds, which were previously hindered by the UAE’s former ‘grey rating’.
He expressed confidence in Dubai’s real estate market, citing robust sales of high-value properties in 2023 and an influx of global CEOs, institutional fund managers, and high-net-worth individuals relocating to Dubai in 2024.
“The UAE’s removal from the FATF grey list is a significant achievement, reflecting the country’s substantial progress in addressing anti-money laundering (AML) and counter-terrorist financing (CTF) measures over the past two years,” the Abu Dhabi Global Market (ADGM), said, congratulating the UAE government and the Higher Committee Overseeing the National Strategy for Anti-Money Laundering and Countering Terrorism Financing.
ADGM reiterated its commitment to collaborating with key stakeholders to strengthen the UAE’s AML/CTF framework and align with national risk assessment initiatives.
The UAE’s delisting from the FATF watchlist presents promising opportunities for economic growth and enhanced trust in the country’s financial system, albeit with potential challenges and a gradual transition period ahead.