A Guide for Investment in Dubai
13

Nov 2019

Dubai has been a record holder of the “Tallest Building Ever” and being the safest country. The biggest reason behind the larger real estate status of Dubai is the investment of various million foreigners and residency, who have shifted and invested in Dubai from abroad.

The investment planning and regulation are done at the federal and local levels. The following investment authorities are:

Emirates Investment Authority (EIA)

The Uae's Federal Government has the only Sovereign Wealth, that is the Emirates Investment Authority (EIA). The EIA was established in 2007 and has actively sought unique investment opportunities locally, regionally and internationally, which focuses on investing in asset classes that will help in strengthening and diversifying the UAE Economy.

Abu Dhabi Investment Council

The Government of Abu Dhabi has an investment arm called the Abu Dhabi Investment Council. It started operating in April 2007 and through a globally diversified investment strategy, it is accountable in terms of investing part of the government's surplus financial resources. The targets include positive capital returns through an expansive portfolio of highly diversified asset classes and active investment management strategies.

Investment Corporation of Dubai (ICD)

Dubai has experienced a rise in financial institutions since the 1970s. This has helped Dubai to foster growth and make it one of the region's top financial centres. Investment Corporation of Dubai (ICD) is the principal investment arm of the Government of Dubai, established in May 2006 by decree (11) of 2006.

Strategic oversight is also provided, which leads to developing and implementing investment strategy and corporate governance policies to maximize stakeholder value for the long-term benefit of the Emirate.

Investment Opportunities in Dubai

Dubai has many investment opportunities. From the last few years, a tremendous rise in the number of investments has been made. In the length of time, there are many reasons to invest in Dubai:

 

  • It is located between East and West and therefore connects Middle-East Asia, Africa, and Europe.
  • Its World Class Infrastructure stands proudly among the list of top cities that provide state of the art infrastructure to its residents.
  • It has favourable business regulations to encourage foreign investments.
  • Dubai is a tax-free city and is open for people around the world who can come to work and look for investment opportunities.
  • For the ease of doing business, UAE ranks first in the region and the parameters which are based on it, such as starting a business, dealing with permits, registration of property, etc.
  • UAE is known as the third most peaceful country in the Middle East and North Africa (MENA) region according to a constitutional monarchy since 1971.
  • It is essential for the government to look on the right living conditions and quality of life. Crime levels in Dubai are shallow.
  • It has a wide range of business premises ranging from the mainland to free zones.

Now we know some reasons to invest in Dubai. Next, we shall look at the advantages that you'll get by investing in Dubai property:

  • The real estate income is volatile, just like the stock market. You would never face a situation where the value of your property suddenly falls to zero. In case there's a complete loss of capital, investing in real estate will be the best option to go forward. The Dubai Government as well is also very supportive and encourages business and trade, as they expect the property values to rise invariably.
  • As you are a real estate investor, compared to other investment options, you should have more control over your investments. The only reason behind this is that the asset is tangible. Adding on, diversification in real estate only means buying different types of property.
  • If we compare Dubai with other cities, property process in Dubai are still inexpensive, which leads to a tremendous scope of growth. Every year, the demand for properties is increasing at a rapid pace. Hence, it is a good investment option.
  • Real estate investment is known as an inflation-beating investment. Dubai is a global city and a trading hub along with providing benefits; therefore, the demand for properties in Dubai is always high, and it is not difficult to find a tenant.
  • The opportunities for investment in Dubai are open to anyone from anywhere in the world. By real estate investment, you can get benefits from the growing economy of Dubai too.
  • The banks which are existing in Dubai are easing the norms for home loans and boosting the demand for properties. And an increased demand leads to an increase in supply. This brings out better deals and more options for buyers.

Hence, putting money into Dubai property has more benefits than other investment options. It's imperative to think about your financial goals and do your research well before investing.

It is the global world that we are living in; there are plenty of opportunities to play a vital role in the growth of a country by investing in it. Grab the opportunities; chance of investing in Dubai. If you're planning to be a part of this fast-growing economy, it can be possible by purchasing a property with the World Expo 2020 coming up, which is slated to be hosted in Dubai. The number of people who are expected to come to the UAE is 25 million, creating around 300,000 new jobs. Dubai's real estate market is bound to experience a massive surge during the period. Hence, if you're considering to invest in real estate in Dubai, the time is now!

At JAXA Chartered Accountants, accounting experts provide unique services and can guide you on how to invest correctly and then cater to the business needs, which makes us one of the top ten consultants in Dubai. Contact us today for further assistance.