Dubai has been a favourite location with investors for some time, writes Tony Booth. But the decision of the Dubai Government to introduce its first Rent Cap Law in 2006 and then inflict a second restriction in the same year might have some serious implications for capital growth and rental income over the next twelve months.

Despite these almost draconian measures, the popularity of Dubai remains strong.

There is nothing subtle or restrained about Dubai. It has purposely and methodically developed itself over the last few years into a world class location for property investors, with foreign money pouring through its borders faster than the rich oil reserves have flooded out.

It is a phenomenal success story...and one that has justifiably caused commentators to crown it the fastest growing city on earth.

And if you doubt that as a fact, bear in mind Dubai 'employs' one-fifth of all the construction cranes that exist anywhere in the world.

Dubai is one of the most significant strategic, political and financial cities on the globe - and it is employing its unique position to further increase its profile and development.