Six reasons to consider Dubai for your next investment destination

Six reasons to consider Dubai for your next investment destination 

The United Arab Emirates is a fast-growing and constantly-evolving country that keeps pace with all changes at the global and local levels. It is considered to be a world trade centre that connects the Middle East with the rest of the world. Its unique atmosphere, that combines modernity and tradition, elegance and simplicity make it the ultimate investment destination.

 It is visited by investors from all over the world for many other reasons, including the distinguished geographical location and ease of and out, strong financial reserves, government legislation that encourages investment and the appropriate environment provided by the government to create opportunities for creativity and encourage innovation and scientific research.

Despite the setback that foreign investment in the UAE suffered as a result of the Covid 19 pandemic in 2020, it was able to make a full recovery, as the report of the United Nations Conference on Trade and Development (UNCTAD) 2022 ranks the UAE first in the Arab world and 19th in the world in attracting foreign direct investment.

The UAE adopts a national plan and strategy to build a green economy, first by encouraging the use of renewable energy and clean fuels and it is trying hard to preserve the environment in various fields as it is trying to create complete cities based on sustainable energy, from infrastructure to transportation, including everything that serves these cities is environmentally friendly, which is effective in creating a highly educated fully aware society whose goal is to preserve the environment and the continuity of life .

Recycling, reducing the use of organic products, rationalising water and electricity consumption, adopting sustainable energy, and reducing carbon emissions are all steps taken by the UAE to create environmentally friendly cities and industries, making it a unique destination for investment. 

Dubai is not the capital of the Emirates, but it is the most famous city, as it is considered a distinguished tourist and investment destination and that’s as a result of those reasons:

Dubai has a thriving real estate market that offers diversity and attractive urban nature, as Dubai contains the tallest towers in the world and its beautiful beaches, in addition to its advanced buildings and green cities.

 Whether you are a visitor or a resident, you can do all the activities and hobbies that you used to do in your home country, as the Emirates in general and Dubai in particular hold many scientific, economic and entertainment events.

 There are plenty of reasons to invest in real estate in Dubai, including its stable economy, tax-free status, and its excellent infrastructure. Whether you are looking for a place to live or a property for investment, Dubai should be one of your top options. Therefore, we have collected for you five main reasons that make Dubai the investors first choice:

1. High rental return

Dubai offers higher real estate yields compared to other major cities with an average rental yield of 7.5%.

 Real estate prices in Dubai are also competitive compared to the prices in other global cities, in addition to the zero taxes on property or profits, which increases rental and investment returns in general.

 2. The increase in the value of the property over time

Despite the rapid development of the UAE in the past 50 years, there are many neighbourhoods that are still under construction, so they still hold a great opportunity for investment.

The number of investors and tourists, as well as expatriate workers, is also increasing due to safety, political stability, and the increasing economic growth, so real estate investments are expected to continue to thrive.

3. Ease of ownership and clarity of laws

Non-UAE nationals have been allowed to own property since 2002, and since then the UAE government has facilitated ownership and investment procedures. The Dubai Land Department (DLD) deals with all matters related to registering land sales and purchases, in addition to approving, organising and documenting transactions related to land and real estate registered in Dubai, which inspires confidence and encourages investors to take Dubai as a first destination for investment.

The UAE government not only enact legislation and facilitate the procedures for its citizens and foreign investors alike, but rather it works to ensure its implementation on the ground. 

Its various ministries, including The Dubai Land Department is keen to spread awareness and knowledge of the applicable legislation and to publish real estate purchase and sale transactions on a weekly and monthly basis to allow investors to track current real estate prices in Dubai. This kind of transparency and openness makes it a unique destination for foreign investors.

4. Safety

Although there are more than 200 different nationalities who make up nearly 80% of the country’s population, this is not a security impediment to the state given the strict legislation enacted by the UAE with regard to violating laws, which makes it one of the safest investment destinations in the world. Nationalities are a means to provide labour and increase social and cultural diversity, in addition to making it a distinguished tourist destination, which helps in increasing and expanding real estate investment.

 5. Tourism in Dubai

Dubai is one of the world’s most attractive destinations for tourists. It offers a unique experience to its visitors. Travellers can see and visit the tallest building in the world, Burj Khalifa, in addition to the amazing shopping malls, Palm Jumeirah, light shows, Dubai Fountain, Global Village and much more!

The tourism sector in Dubai continues to grow, as the growth rate in the sector has reached more than 180% compared to the previous year, making it a distinguished destination for tourism real estate investment.

An important example of this investment is buying a property (an apartment for example) and renting it on a daily basis. Studies have shown that Dubai has high rates of reservations, as the annual reservation rate reaches 70% for all daily hotel rooms and apartments throughout the year, not to mention the increase in demand and high prices during seasons and holidays.

6. Golden residence

Investors in residential real estate in Dubai obtain immediate legal residency in the city, according to the investment-friendly visa programs applied to individuals who choose to invest in real estate. 

Of course this programme has certain eligibility criteria, one of which is that the value of the investment must exceed one million dirhams, provided that the value of the mortgage does not exceed more than 50% of the value of the property.

Individuals who invest in joint investments are also entitled to each individual exceeding one million dirhams.

Those privileges  are only for residential properties, not commercial, and for owners of completed projects.

The reasons that make Dubai an investment destination are many, as it has a strategic location, its government openness and transparency and the economic facilities it provides to investors, the infrastructure and the rapid and massive progress of Dubai, and many other factors that are impossible to meet anywhere else in the world.

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