THE DEAL to normalise relations be-tween Israel and the United Arab Emirates (uae), announced on August 13th, was a diplomatic coup. Might it be a commercial one too? Moneymen in Dubai, the uae's largest financial centre, are hoping to cash in on increased investment and travel between the two countries. Israelis are expected to join the hordes of well-heeled foreigners who have opened businesses or bought swanky pads in the coastal emirate. Dubai, one of seven emirates that make up the uae, will be glad of the custom. Its media may be full of feel-good financial stories-drooling, for instance, over the recent foundation-pouring for the world's tallest hotel, set to rise to 82 storeys, and the unveiling of "the world's highest infinity pool"-but closer to earth things look less impressive. Thanks to overbuilding, property prices remain far below peaks reached six years ago. Covid-19 has clobbered an economy built largely on retail and hospitality. Low oil prices have strengthened the headwinds: Dubai is not hydrocarbon-rich but its economy feeds on petrodollars.
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