10 September, 2019
Why Should you Invest in Dubai?
Like thousand foreigners investors you have chosen Dubai as your business destination, but have you ever wondered why Dubai could attract this number of investors, and why these numbers are going to be on the rise in the future?
Well for simple reasons like its liberal business environment and tax-free zones, dynamic financial sphere for potential investors, various investment opportunities particularly for expats to make the most of their money, unique advantages such as geographical and natural, political and legal, and more.
However Investing in Dubai may be a complex subject for entrepreneurs and expats, who are not familiar with the rules and procedures in this prospering city. In this blog, we’ll focus on illustrating the reasons you should invest in Dubai, those options meticulously and providing a comprehensible insight.
Why should you invest in Dubai?
Geographically well located: between the east and the west, connecting Middle-East, Asia, Africa, and Europe, Dubai stands proudly among the list of the top cities that provide state of the art infrastructure to its residents.
It offers a plethora of business premises ranging from the mainland to free zones. Besides UAE being the third most peaceful country in the Middle East and North Africa (MENA) region, the country ranks first in the region for the ease of doing business. This is based on parameters like starting a business, dealing with permits, registration of property, etc. especially in Dubai that has efficient business regulation systems to encourage foreign investments.
Economic diversity in Dubai
Non-oil sectors generate 70 % of the GDP, while in Dubai this percentage goes as high as 95 %.Add to that the higher yields, as Dubai property market offers a yield of 7 %, exceeding other international markets like Singapore 4 %, and Hong Kong 3 %. Economic regulations play a vital role in this rise as well, as they encourage competition, fights monopoly, and support the growth of the private sector and foreign investing. UAE law takes serious measures protecting intellectual property rights and trademarks and fights racism. All of that adds a sense of safety for investors. UAE is a member of the World Trade Organization (WTO) since 1996, and a party to the General Agreement on Tariffs and Trade (GATT), in addition to many agreements and organizations that ensure the internationality and legitimacy of these investments.
Purchasing any property that is worth 1 million AED or more grants the owner a residency permit, and the UAE has lately introduced a 10-year residency visa for investors and specialists.There are many other advantages that make UAE a solid choice for investing, like competitive power prices (Water, Electricity, and Oil) and a maximum customs fee of 5 %, the lowest in the region. Add to that the availability of labor and competitive wages within the frame of a regulation that ensures transparency between the employer and the employees, and lastly the ability to discover new partnerships with local investors or those in the GCC area.
Where to invest in Dubai? Here is a list of the best areas of investment available in Dubai to help you get started:
The Stock Market
There are two stock exchanges in Dubai, both of which function under the holding company of Borse Dubai. They are as follows:
1. The Dubai Financial Market (DFM) –It is regulated by the Securities and Commodities Authority (SCA) which directly reports to the Minister of Economy.
2. NASDAQ Dubai – This exchange lists both, domestic and international stocks. It also offers trading in equity derivatives and REITs. This exchange is regulated by the Dubai Financial Services Authority (DFSA)- a financial regulatory agency of the special economic zone.
Mutual Funds and Bonds
Dubai offers you the opportunity of investing in mutual funds and bonds. Most bonds are traded in the form of Sukuks and a few, still in the western format. Even Mutual funds are available in the Sharia-compliant and non-Sharia-compliant formats.
Of all the investment opportunities in Dubai, investment in real estate has been the most favored by investors from around the globe. A number of factors make real estate investment in Dubai, desirable for investors. Here are the aspects that made Dubai the hotspot for real estate investment around the world:
-The property prices in Dubai are lower than those in other global cities like London, Sydney, New York, etc.
-Being located centrally between the east and west has led to the generation and development of business in this region and has subsequently led to an increase in demand for real estate properties.
-Builders have ensured and delivered quality construction, too.
These are amongst the best investment options in Dubai. While stocks, bonds, and mutual funds have their own benefits, investing in real estate is the simplest and most recommended option. With the World Expo 2020 approaching, the Dubai market is expected to grow exponentially, having a major impact on property values.
If you are thinking about where to invest in Dubai, and how then get in touch with us today, we are expert in the Market’s Investments.