Dubai is a city that has taken advantage of its diversity, contrasts, and geographical location. Having had a remarkable evolution over the years, today the city is just not an international business destination but, it is also known as a cosmopolitan destination for shopping and entertainment. Dubai is appealing to foreign investors because it provides great access to important markets like Africa, Asia the Middle East, and because of great connectivity to other international business centres in Europe and America. In this blog, we will walk you through why it would be significant to invest in Dubai.
Safe investment choice: Dubai is one of the safest cities in the world for citizens, residents, and investors. Having meticulous law enforcement bodies keeps communities happy and vibrant. The transformational journey of Dubai into a futuristic city within a few decades is truly inspiring. One of the most important factors before investing or moving to Dubai is the cost of living and standard of life compared to other countries. Living in some of the world's major expats hubs like Hong Kong, London, New York, Singapore, Dubai cost far less in terms of cost of living.
For example, according to the survey, purchasing an apartment in Dubai has its own perks: the gross rental yields are much higher than that of Singapore. When it comes to properties located in the centre of the city, Dubai offers a yield of 10.48% whilst Singapore in comparison offers only 2.63%. So investors in Dubai property can see much higher gains in capital investment than Singapore. Dubai government’s unwavering support for local and global investors has paved the way for real estate growth in the region. Dubai’s socio-economic development and its strong international ties have helped position Dubai as a safe and lucrative investment destination.
Government incentives: UAE government has always been supportive of an innovative approach to business which has elevated Dubai’s value proposition to investors. The introduction of investor- friendly policies such as long-term visas for investors, five-year retirement visas, and 100 % foreign ownership of the business in most sectors has always boosted confidence among foreign investors. Financial incentives are plentiful, UAE provides an extremely tax-favourable environment compared to Singapore and New Zealand. Department of Economic Development (DED) is implementing new packages of government reforms with incentives to attract world-leading business incubators and accelerators. There has been a surge in women entrepreneurs, advisories and workshops, so the Dubai based Women Investment Network has been set up to help female entrepreneurs and other women with financial management. With more women investors and a more inclusive, diverse and consequently booming ecosystem, there has never been a better time for a woman to open a business in the UAE.
High Return of Investment: Investing in Dubai will generate a high return of investment due to a lack of taxes such as property acquisition and capital gains. Furthermore, a 5% minimum investment yield is offered in Dubai, which is higher than what many major cities in the world offer. Renting out property is also a smart way to earn a good amount of money in Dubai. The ROI of over 6% is offered by most key neighbourhoods in Dubai when it comes to the sale of apartments. The villa communities offer an ROI of over 4%. However, International city, a popular area of purchasing properties in Dubai offers rental yields of over 9%.. Dubai’s real estate market has been on a stellar growth track since January 2021, and it offers rental yields of 6-10% which is unheard of even in many mature markets.
Funding Opportunity: Being an epicentre of global entrepreneurship and home to the world of start-ups with no shortage of venture capital and technology at your fingertips. This nation is taking huge steps to become the next Silicon Valley in the east with several grants, technology conferences and pitching competitions. Dubai hosts a large network of incubators enabling start-ups to scale from an idea to fully-fledged business. Incubators create the perfect environments for and medium emerging businesses, offering early funding, working spaces, training programs, workshops, and access to investors. According to the World Bank Ease of Doing Business Index 2020, UAE is the 16th best country in the world for doing business. It has maintained its leading position in GCC over the years.
Loan opportunity: Buying a property in Dubai is a profitable investment, the UAE offers a robust banking infrastructure and banks often provide loans for foreign investors. There are specific banks that cater to the requirements of small and medium enterprises and issue bank loans. The interest percentage collateral and repayment term differ amongst each. Business entities with years of successful operations and good credit history to showcase have a higher chance of securing bigger loan amounts.
Safety and Security: Having a feeling of security is important when you move to a new country and culture. The good news is, Dubai is the safest place in the Middle East and according to the 2021 survey, UAE has been ranked the second safest country among the world’s 134 countries. Its strict laws mean that its crime rates are virtually non-existent and when it happens it’s usually of the white-collar variety. Dubai’s laws and regulations are frequently amended to provide a flexible and up-to-date legal framework for commercial best practices. Dubai’s government is the driving force behind the emirates’ push to become the worlds leading business destination while it enjoys excellent political stability, a factor that makes it a very attractive business destination compared to other countries in the world. Dubai’s classic philosophy of non-intervention, neutrality and business-first approach has topped its business agenda over the years.
According to the real estate agent and analyst, John Castely said “ Dubai house prices may rise this year at twice the rate in a few months and there is demand in foreign investors and improving affordability. Dubai’s economy has bounced back after a pandemic as the trade and travel sectors have opened up, helping the previously ailing real estate sector”.
As Dubai is one of the world’s freest economies with a globally-minded business culture now moving towards becoming an investor-friendly global hub. Dubai is undoubtedly one of the world’s easiest places and ranked 14th in the world for being one of the happiest countries to live in and to do business. It’s time to reap the benefits and profits of the country’s vibrant real.
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