EclectEcon

According to The Economist, housing shortages are causing inflation in Dubai.

Economists agree that a shortage of new homes is the root cause of inflation in Dubai today.

But the Emirates Economist disagrees:

[M]uch of the inflation has come about because Dubai, and the UAE in general, is growing and attracting investment.

In other words, the inflation has been demand-driven, in part because their currency is pegged to US dollars. He also points out that there is a great deal of residential construction going on in Dubai:

I think the number of units coming on line is beyond the needs of the market already.

Overall, the piece in The Economist does a good job of explaining why rent controls are almost always a bad idea. But John Chilton's analysis of the current situtation in Dubai is both better and better-informed.