Another benefit to keyword-targeted domain names appears in the area of domain age. Search engines give preference to older domains versus newer ones, giving aged domains a slight edge in organic search. If your domain is newer compared to your competitors, being location-specific and targeting keywords in your domain name can help decrease your disadvantage, because I've seen this type of domain do very well in listings, despite being much younger than its competitors.
For more on the value of domain age, check out the Pear blog.
domain age and keyword relevancy are two of the most important aspects of selecting one. since all good ones appear to be taken, consider a long tail domain with dashes separating works (i.e. www.dubai-information-site.com). search engines treat dashes like spaces