8 Reasons To Invest in Dubai

8 Reasons To Invest in Dubai

Dubai is one of the world's most popular tourist destinations. Known for its extravagant shopping, luxurious hotels, prevalent nightlife, magnificent architecture, and breath-taking views. Besides having everything bigger and better, Dubai is known for the luxurious and glamorous lifestyle it offers its residents. It is a haven for those who want to invest their hard-earned money and get incredible returns.

The city has benefited from its geographic setting, way of life, and range of opportunities. Dubai's transformation from a remote desert seawater to one of the most breathtaking cities in the world has been enormous. Today, it is a major metropolis that serves as an international business hub and a popular spot for leisure and shopping. This ‘city of dreams’ is home to the highest number of investors and venture capitalists in the region.

For those looking to invest, Dubai has a plethora of options. For foreign investors, it is appealing to invest in Dubai due to its excellent access to key markets such as Asia, Africa, and the Middle East, as well as an exchange contact to major international commercial hubs in America and Europe. As a result, many people living outside the UAE prefer to invest in Dubai.

The Middle East, Africa, and South Asia (MEASA) region is home to more than three billion people, resulting in increased trade and investment. As trade and investment grow, so does the demand for wholesale banking and capital markets. This reinforces Dubai's position as the de facto hub connecting the region's major markets, which explains why more than US$350 billion in trade passes through Dubai each year.

Data released by the Dubai Land Department (DLD) shows that –

“Dubai real estate market recorded 516 sales transactions worth AED1.73 billion, in addition to 71 mortgage deals of AED596.74 million, and 26 gift deals amounting to AED503.85 million on 5th January 2023, Thursday.”

No matter which way the market turns, Dubai has maintained its position as a reliable choice for investors around the world.  But what draws people to this city in the first place? Here are some reasons why you ought to invest in Dubai.

Why Invest in Dubai?

Dubai is a great place to invest due to its stunning seascapes, breathtaking skyline, and richness of leisure and hospitality opportunities. Dubai offers a variety of advantages for investors, including some of the most cutting-edge and promising infrastructures. Growing opportunities in numerous fields continue to attract foreign talent to Dubai. The UAE government permits foreigners to own 100% of their real estate, which resulted in an increase in Dubai's real estate market.

Here are the top 8 reasons to invest in Dubai:

1. Booming Tourism

Despite the fact that more and more people have moved to Dubai as long-term residents in recent years, it remains one of the world's most popular tourist destinations. Dubai has become a household name and is the first option for every holiday trip ever. it is a city that has an ever-growing list of new, exciting, and one-of-a-kind attractions, activities, and experiences. This city can never bore you! There are many things to do, places to visit, and experience in this magnificent city. From Skyscrapers, shopping malls, thrilling activities, tourists hotspots and many more.... There is no shortage of marvels to experience with world-class attractions such as the Burj Khalifa, Palm Jumeirah, and malls such as Dubai Mall.

2. Fast growing economy

The economy is another valuable reason to invest in Dubai. One significant benefit of buying property in Dubai is that it greatly benefits from its thriving economy. Dubai, located at a strategic crossroads between East and West, serves as a critical regional center for businesses seeking to expand in either or both directions. International investment in Dubai brings more diversity and stability to the economy, with money earned from tourism being invested in trade. The government's efforts to promote Dubai as the MENA region's center of industry and trade have led to significant improvements and outstanding capital growth. Dubai has evolved into the leading economic hub in the Middle East.

3. Central location

Dubai is strategically located, with nearly 70% of the world's population within an 8-hour flight distance. This makes the Dubai International Airport busiest airport with close to 64 million people passing through in 2022.  Dubai serves as a convenient stopover for those traveling around the world, as well as a hub for local businesses looking to expand in either direction.

4. 10-year investor visa

UAE’s coveted Golden Visa is another great benefit of investing in Dubai. Individuals who invest at least Dh2 million in the UAE are eligible to apply for a 10-year Golden Visa. These can be investment funds accredited in the UAE, a commercial or industrial license of an investor, or the investor owns a company in the UAE and pays tax to the Federal Tax Authority of at least Dh250,000 per year. This is a game changer for the Dubai economy. Introducing such a long-term residence option demonstrates Dubai's trust in investors and proves how secure an investment in the city is in the long run.

5. Tax-free investment

Another significant advantage of investing in Dubai, particularly in the real estate market, is the absence of property tax. Even though VAT was implemented in 2018, it is still insignificant in terms of overall costs and does not apply to residential property purchases. You'll be able to buy a villa or apartment anywhere in the city and be rest assured that you won't have to give up a portion of your annual returns. Which is a great benefit when investing in Dubai!

6. Impressive ROI

In Dubai, real estate can be a reasonable investment with a high return on investment. It is a rewarding experience because Dubai typically offers appealing properties in popular areas that yield excellent returns. Investing in a Dubai property may generate a significant investment return due to the absence of property taxes. You can expect returns of more than 6%, with double digits in critical communities, making this one of the most financially rewarding investments. Moreover, property prices in Dubai are rising, resulting in a significant profit for investors. According to a recent UBS study, the Dubai Property Market is one of the world's only underpriced markets compared to major cities like Hong Kong, New York, and Paris. Keeping this in mind, selling the property and then investing the money in the future can result in a quick profit.

7. Safety and stability

Dubai's safety is critical in attracting expats and investors to the emirate. Dubai is considered as one of the safest cities in the world, with a low crime rate and a well-functioning legal system. People from all walks of life can visit the city and have nothing to worry about.  Despite political turmoil in several parts of the world and across the region, UAE has remained a haven for those who live there. When it comes to real estate investment, investing in Dubai provides you with a solid regulatory system to protect your investment interests. Dubai also has the most open and regulated real estate market in the MENA region, which attracts investors who know their money is safe.

8. Great Infrastructure

Given the ongoing increases in development, one of the most essential factors to comprehend is why you should invest in real estate business. Dubai is one of the places with world class infrastructure and a high standard of living. Dubai is home to some of the world's largest, tallest, and most exclusive structures, including the Burj Khalifa and the Palm Jumeirah, the most beautiful artificial island. The city is constantly creating new and unique buildings, towers, and skyscrapers. As a result, it is an enticing reason for any astute investor to consider investing in Dubai.

Other Advantages:

There are a few more benefits to investing in Dubai. They are as follows:

  1. The UAE has a liberal policy that encourages foreign individuals and businesses to invest and participate in the mutual growth process.
  2. The implementation of VAT has increased government revenues, which will be used to fund infrastructure projects.
  3. The country has been named one of the top five shopping destinations in the world.
  4. Competitive energy prices for electricity, water, and oil
  5. Cost-effective availability of skilled and unskilled labor

What are the top investment sectors in Dubai?

• Real Estate
• Hospitality
• Trading
• Agritech
• Cloud Computing
• Augmented reality and virtual reality

There are countless opportunities to take part in a country's growth by investing in it in today's global economy. Investing in Dubai is an   opportunity that should not be given up. You can be part of this rapidly expanding economy by investing in the country's markets. Expo 2020 was held from October 2021 - March 2022 and hosted around 24 million people from around the world, this has resulted in Dubai's economy and market to skyrocket.  So, if you've been thinking about investing in Dubai the time is now!

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