Dubai: Dubai’s relative cost advantage and US dollar-linked currency mean residents’ day-to-day purchasing power remains largely protected from global volatility, while the emirate continues to stand out to the international elite as a stable business and wealth hub connecting East and West, according to Julius Baer.The Swiss wealth manager’s Global Wealth and Lifestyle Report 2026 placed Dubai 14th in its global lifestyle index, with the emirate holding its appeal as a premium lifestyle destination while several European and Asian cities became more expensive because of strengthening currencies.The report said the price of a premium standard of living climbed by an average of 10.2% globally in US dollar terms over the past year, with the increase driven more by currency movements than local inflation.Dubai holds value advantageDubai’s position in the index reflects the fact that rival wealth hubs have become more expensive, not that local costs have fallen.The UAE dirham’s peg to the US dollar helped protect Dubai’s relative affordability compared with cities linked to stronger currencies such as the euro and Swiss franc.The report said Dubai offers strong comparative value across high-end real estate, luxury cars, jewellery and premium travel, giving affluent residents and internationally mobile families a more competitive base for lifestyle spending.Prime real estate remains one of Dubai’s biggest advantages, with prices still offering relative value compared with top-tier Asian and European hubs. The city also continues to score strongly in premium hospitality, fine dining and exclusive experiences, areas that remain central to its appeal for wealthy residents and visitors.Wealth spending stays strongThe Middle East also stood out for wealth creation and spending confidence.A third of high-net-worth individuals in the region reported major wealth accumulation last year, more than double the share recorded in Europe. The report also found that 43% of affluent Middle Eastern respondents increased their investments and lifestyle spending, ahead of rates in the Americas and Europe.The region’s wealth trends are also closely linked to family structures and succession planning. Julius Baer said 98% of respondents in the Middle East live in larger family households, while six in ten addressed succession planning over the past year.The region also leads globally in professionalised wealth management, with 65% using family offices and 73% having formal family governance frameworks.“The Middle East, especially the Gulf Cooperation Council (GCC), entered 2026 from a position of strength but have recently faced headwinds from heightened geopolitical uncertainty impacting short term growth prospects," noted Rishabh Saksena, Co-Head Global Asset Class Specialists at Julius Baer. "Oxford Economics and ICAEW now forecast Gulf Cooperation Council (GCC) GDP to contract by 0.2% in 2026, against a previously projected 4.4% expansion for the year, with a strong rebound of 8.5% projected for 2027 as conditions normalise.”He said the pressure is likely to be felt most in confidence-linked sectors.“The near-term pressure is concentrated in sectors most exposed to confidence and connectivity. Tourism, hospitality, real estate, and aviation have absorbed the most direct impact that might last till the end of the year with dampened sentiment and demand. Governments across the Gulf have responded with targeted fiscal measures, while central banks moved to protect liquidity and maintain market stability, drawing on the deep fiscal buffers accumulated through years of deliberate economic reform.”Non-oil growth anchors regionThe report said the Gulf’s longer-term investment case remains supported by economic diversification, regulatory reform and stronger wealth migration.Non-oil industries now account for about 73% of total GCC GDP, while artificial intelligence has become a central part of national economic strategies across the region.“The longer-term trajectory for the GCC is defined by a structural transformation that predates the current environment. Non-oil sectors now account for approximately 73% of the GCC’s total GDP and artificial intelligence has moved to the centre of each government’s economic architecture, with sovereign capital deployed through dedicated national vehicles and clear national strategies across the Gulf," Saksena explained. "AI is projected to contribute up to USD 320 billion to the Middle East economy by 2030.”He added that supportive residency frameworks and stronger regulation will continue to attract capital flows, institutional investment and wealth migration to the region’s financial centres.Luxury priorities changeThe report also pointed to changing priorities among the global wealthy, with affluent individuals putting more emphasis on health, family stability, personal security and longevity.Demand for luxury travel and high-end dining remains strong, while wellness spending has grown as wealthy consumers treat health as part of long-term wealth preservation.Dubai is set to benefit from those trends because its premium lifestyle offer is backed by real estate, hospitality, transport, security and business infrastructure that continues to attract wealth from across the region and beyond.Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.