Why invest in the UAE

Below are few articles with their sources presenting business opportunities in UAE.

The main reasons to invest in the UAE – the safest country for doing business

(https://alliance-dubai.net/)

Not long ago, a video about the prospects for the development of the global economy appeared on Youtube – “How to prepare for the next economic downturn.” According to the authors of this video, the experts from the respected magazine “The Economist,” the global prospects do not look bright, especially for developing countries. The problems that their governments will face within the coming years will be global, and the recession that we witnessed during the last economic crisis may occur once again, and growing public debt will only worsen the situation.

As a rule, the country's leadership takes standard steps to get out of this problematic situation, for example, reduces the interest rates of the central bank, issues additional currency to buy bonds, increases government spending, etc.

The UAE, as one of the leaders of the region in terms of economic growth, went the other way. Here, the number of preventive measures have already been taken to stimulate the growth and development of the local economy to avoid the negative impact of a possible crisis. So let's consider why the UAE is so attractive for investors.

1.            One of the measures to stimulate the local economy is unprecedented funds allocated for education and social development. Almost 60% of the total federal budget of 180 billion dirhams (about 50 billion dollars), will be spent on these needs. Practice shows that investing in education, science and the social sphere gives the result for the future and creates the foundation for the development of all sectors of the economy.

2.    Another reason to invest in the country's economy is a specially designed plan for reforming and modernizing the economy with a huge budget of $13.6 billion, which is designed to accelerate economic growth over the coming years. The plan was developed by the Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan, and approved in June 2018.

3.    A new insurance system for people who have lower average income can also be called a significant factor in favor of investment in the UAE. It is designed to replace the old system of monetary guarantees of 3,000 dirhams per person. Thus, according to the new scheme, each employee is provided with a comprehensive insurance plan with the comverage of up to 60 thousand dirhams. The insurance covers vacation payment, unpaid salary, severance payment, overtime payment, work injury cases and even purchase of airline tickets. Thus, the new insurance system can significantly reduce the burden on employers and at the same time ensure the rights of employees in the private sector. This will allow the released capital to be re-invested.

4.    We cannot ignore the government housing plan. Thus, the UAE government, headed by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, developed a plan according to which $1.9 billion from the country's budget will be spent on building new housing for the citizens of the country during the next three years. On the one hand, this will support the construction sector, and on the other, it will raise the level of satisfaction of the UAE population. For the next three years, it is planned to build 7270 residential units under this initiative.

5.    The fifth reason for investing in this country is innovations in the field of business promotion in the Emirates of Dubai and Abu Dhabi. Innovations are in the balance with the new concept of “The economy of free earnings,” or “GigEconomy.” Thus, according to this concept, the traditional relationship between the employer and the employee, to which we are accustomed, is gradually becoming a thing of the past. GigEconomy involves temporary employment, active work in teams on projects, which can be seen in the example of startups. For example, in Dubai, a special license is issued for the self-employed – “GoFreelancer,” which allows a freelancer to obtain a work permit. Abu Dhabi has introduced a special license for startups, which is issued by the state organization "Global Market Abu Dhabi" (ADGM, "AbuDhabiGlobalMarket").

6.    Finally, the sixth reason for foreign investors to consider the UAE as a place for profitable investment is the gradual elimination of barriers to business. Until the end of this year, the government plans to allow 100% ownership of companies by foreigners outside the free zones (at the moment there is a requirement that a foreigner can own no more than 49% of a local company’s shares, the remaining 51% should be the property of a UAE citizen or a local company). As expected, this will provide the even greater inflow of investments and will give a new impetus to the development of the economy in order to level out possible fluctuations in the market of petroleum products and diversify the country's economy.

In conclusion, we should note that the UAE is a very promising market for the region of the Middle East and North Africa, which has shown steady growth and development for several years in a row

 

Source;  Alliance-dubai.net - The main reasons to invest in the UAE – the safest country for doing business

https://alliance-dubai.net/our-services/dubai-business-news-newsletter/newsletter-december-2018/main-reasons-to-invest-in-uae-safest-country-for-doing-business/

 

 ____________________________________

 

Reasons that will convince you to Invest in UAE

BY CBN ON DECEMBER 5, 2018  E-HEADLINES

 World is full of amazing and exciting places to live, some are just good to visit while others are better to choose as a live in. Dubai isn’t just a decent place for living but great opportunity for property investment.

The world of United Arab Emirates is amazing with full of sunshine year-round, stunning beaches, enormous shopping malls, desert safaris and a breathtaking infrastructure like Burj Khalifa and the Palm Jumeirah. There are some of the exquisite assets in UAE that fascinate tourists with when they just ask for a memorable vacation.

In Dubai there is no property charge, you don’t need to pay to grant access, the purchasing method is exceptionally straightforward. You don’t need to be worry about any long-term consequences.

Here are few reasons that why to invest in the UAE Real Estate:

Great Investment Returns in Real Estate

There is a great window of opportunity for investors to invest in UAE market where property prices are still comparatively low. The fascinating places of Dubai makes it a New York of the Middle East by comparing the high-end leisure amenities and business facilities they offer with offering a surpassing location and cost.

A million Dollar invested on 146 sq/mile property in Dubai against a 25.1 property in London and New York couldn’t be compared. Just with the enormous increasing in number of tourists and consequent demand for residential and rental properties in Dubai. These all are expected to hike in the coming year, this seems quiet surprising for new investors.

Growing Tourism, thus makes it a Stronger Economy

We are just ahead to Dubai expo 2020 and, many job seekers, Entrepreneurs and enormous businesses are rushing toward Dubai, this tends to cash in the revenue expected from visitors.

In Dubai’s Expo 2020, the area alone is expecting over 20 million tourists from all round the Globe, which are about to generate 8 million more visitors than what are now. According to sources WTTC the tourism sector added about 8.4 % of GDP which is around 117.4 billion dirhams in U.A.E economy. The seems that the employment opportunities will rise; about 369,000 job openings are expected by end of 2024.

Free zone Area for Foreigners

For investing in Dubai there is free zone area, there no such laws implemented for foreigners, you don’t need to be a U.A.E citizen or don’t even need a residency visa. Since 1999, Dubai has started allowing foreigners to buy property in U.A.E. This will tend to increase their economy. In the real estate sector, you can invest in property for free zone area without having any permit.

Most of the foreigners have invested in commercial sector and as well as in residential units and have leased the property out. This action turns their money to a good investment return and whenever they just visit to collect their rental revenue, Moreover, buying a property in UAE worth more than 500,000 AED just because this makes you eligible for residency visa in Dubai.

No need to Pay Taxes

While investing in UAE don’t worry about any tax fees, Dubai is completely tax-free. No tax fee is charged upon you, whether you buy an office space, retail unit or an apartment or residential Villa in UAE.

Low traffic

Whenever you are deciding for a living space, office, or any other facilities, it would be wise to think about the traffic too. There are number of luxurious locations in this city where you can comfortably live without getting worried about the traffic issues. This tend to enhance the quality of life in the home. Addon, you get to save a lot due to the low fuel expenses.

Just with the availability of low traffic, one can conveniently go anywhere without much discomfort. Alongside, the neighborhood becomes much safer for the kids in case if you have any.

Great Demand for Housing

Making Investment in real estate, especially in Dubai, the upcoming years could give better underlying opportunity of multiplying their fortunes, as the country is expecting a huge number of visitors in coming future.

Buying furnished apartments on short-term leases, commercial spaces or affordable hotel apartments now is the best time to invest in, it would remain in high demand and be a safe and great investment.

All this means that finally you can start investing in real estate by getting in touch with an agency to find the luxury Dubai houses for sale. The professionals will help you complete the process getting the ownership of the space.

Finally, we conclude that the luxury in Dubai lifestyle never ends. You just need to find the right people and right opportunity to provide all that you desire.

 

Source; Cascade Business news

____________________________________

What gives you up to 20% rental income in UAE… click to know

By 

• Parag Deulgaonkar

Published Saturday, May 07, 2016

Residential rental yields in Dubai are among the world’s highest, but a new investment category can fetch investors up to 20 per cent.

The new asset class, according to Cluttons, a property consultancy, is worker accommodation.

“The variety of investment options available in Dubai range from low-end, high-yielding residential units in peripheral schemes such as International City and Discovery Gardens, to more sophisticated investment options in the office market, where yields can range from 6.5 per cent to 9 per cent. We are also witnessing the emergence of worker accommodation as an increasingly popular asset class, which can offer yields of between 10 per cent and 20 per cent,” said Faisal Durrani, Head of Research, Cluttons.

The Global Property Guide, a website that compiles and analyses property price performance of the world's big economies, has said Dubai offers rental income on average of 7.1 per cent, which is one of the highest in the world. In comparison, gross rental yields in Hong Kong are 2.82 per cent, India 2.22 per cent and Singapore 2.83 per cent, London between 2.72 per cent and 3.20 per cent.

A number of developers have been projecting rental yields of between 6 per cent and 10 per cent to attract investors/buyers.

Volume 0%

 

The high rental yield and capital appreciation are among the factors attracting global High Net Worth Individuals to the UAE, with the consultancy’s “2016 Middle East Private Capital Survey Part 2” showing Dubai, Abu Dhabi and Sharjah to have emerged as the most popular investment destinations for the regional wealthy.

The survey has found 63 per cent of GCC HNWIs planning to invest in real estate during 2016. Of those surveyed, 27 per cent named Dubai as their top three destinations within the GCC, while 21 per cent chose Abu Dhabi and 8 per cent Sharjah.

In April 2016, a new report by Standard and Poor’s Ratings Services said that lifting of sanctions on Russia and Iran, oil price recovery and a weakened US dollar will strongly benefit the recovery of the property market.

“We still believe that the lifting of geopolitical restrictions, such the sanctions on Russia and Iran, could strongly benefit the recovery of the UAE property market. This would open new investment flows into the regions' real estate markets and partly compensate for the softening demand from other countries,” the ratings agency said.

“A rebound in oil prices as well as weakening US dollar would also likely reverse the negative trend,” it added, quoting industry experts that real estate prices have declined by 10 to 13 per cent on average in 2015.

“The strong US dollar has made UAE real estate more expensive for international investors holding non-US-dollar liquidities, and weaker tourist sentiment has affected retailers and their landlords,” S&P said.

source;