Investment opportunities in Dubai

In recent years Dubai’s favourable tax system, rapid expansion and world class facilities has attracted wave upon wave of foreign investors. Establishing a business or buying a home or a plot of land in Dubai is a popular choice. Despite the global economic downturn, Dubai still offers a lot of potentially lucrative opportunities for the canny investor.

What makes Dubai so attractive?

Investment is encouraged in Dubai and most of its development is focussed on attracting visitors and encouraging trade. There is no Corporation tax and no Income tax, and there are plenty of other incentives for businesses to trade here. Plus, Dubai is an amazing place to live and work.  From the state of the art infrastructure to the international sports facilities, it aims to be the biggest and the best at everything.

The tourist industry in Dubai is massive and flights to Dubai are always busy. Every year millions of visitors enjoy the first class accommodation and entertainments, the safe environment, and the hot weather. The list of visitor attractions is endless: from the world’s tallest tower to enormous aquariums and water parks, to luxury shopping malls and 4×4 driving in the desert. Dubai’s prestigious international sporting events include the Desert Classic golf tournament, the Rugby Sevens, Dubai Open Tennis tournament and the Dubai World Cup horse race meeting.

Foreign investment and ownership laws

Foreigners have only been allowed to buy property in Dubai since 2002 and can only obtain the freehold of property in certain designated areas. Now is a good time to think about investing in Dubai because the government of the UAE is drafting a new law to protect foreign investors and thereby make it even more attractive. Dubai is already encouraging foreign businesses by having established Free Zones such as the Dubai Sports City or Jebel Ali Free Zone. Here foreign investors can buy freehold land for development or to sell on at a profit.

Property developments in Dubai

The most popular investment opportunity in Dubai is in property and many people have already made a good return by doing this. There are many different types of property available, from luxury flats in high rise towers by the seafront to sprawling villas within beautifully landscaped estates. Dubai constantly has exciting new housing developments in the pipeline and investors often buy off-plan in the hope of selling on for a profit at a later date.

Dubai Investment trends

Renting accommodation to visitors is a growing trend as hotels are expensive and self catering apartments are more affordable for both business visitors and holidaymakers. With the range of scheduled and charter flights to Dubai on offer, it’s easy to reach too.  Many property owners are making a good income on their investment in this way, and the most profitable areas at the moment are in the Jumeirah Beach Residence area and at Palm Shoreline on the Jumeirah Palm Island. New developments around Dubai Marina are likely to be just as popular.