Dubai – investment hotspot for 2007

Dubai has seen rapid development over the past 30 years, with the technological, financial and tourism industries going from strength to strength, prompting wave upon wave of investors to flood in
Dubai is now firmly positioned as an international economic power, its cosmopolitan atmosphere, nil rate of taxation and political stability continuing to entice a large number of Western companies to outsource their business.

Synonymous with a more luxurious lifestyle, Dubai is actively seeking to grow its international property market and offers great deals to prospective investors, alongside a host of attractive incentives.

Many British expatriates are relocating to Dubai, whether through the purchase of a second home or because of the appealing career prospects the state offers. Compared to other developed countries the cost of living is incredibly cheap and crime is virtually non-existent.

Dubai International Airport boasts more than 86 airlines with links to over 100 cities worldwide, and the Dubai World Central International Airport due for completion in the latter half of 2007 will further increase property prices as additional airlines move in.

Why buy in Dubai?

It seems that there has never been a better time to invest in property in Dubai with foreign investment in the country increasing dramatically in recent years.

Once a sandy desert, the Dubai skyline is now dotted with wonderful buildings of all shapes and sizes, creating a skyline fast on its way to rival that of New York’s.

Dubai's mission is to be the Hong Kong, Monaco and Orlando of the Middle East, the financial hub and the tourism and leisure destination that will outstrip anywhere else.

Its geographical position in the world, where East meets West, means that it has access to a huge market covering Middle East, India, Pakistan, Central and Western Europe, Africa, and the Russian Federation
Dubai has many natural advantages for UK investors – including direct flights of less than 7 hours, relative safety and security, tax free shopping, no tax on income or capital, and of course the sunshine!

Rhiannon Williamson, the director of independent property publication Amberlamb, said that luxury property was still in sufficient demand in the emirate that investors would continue to develop it and would not need to look to affordable options.

“Dubai is in a position to support a mature, well rounded property market which will be of longer term interest to investors rather than shorter term interest for speculators.”

Other Factors driving this continued demand include:

• Government backing for large scale tourism-related projects

• Restrictions on foreign-owned property being lifted

• Freehold ownership being legally instituted shortly

• A high standard of living in a stable economic climate, all year round sunshine

• A residency visa available to buyers when a property is purchased

Take a tax break

The aforementioned tax breaks alongside a favourable exchange rate are two of the main reasons that investors plump for Dubai. There are no personal taxes, no property taxes and no tax on capital gains so you really get the most from your assets. There is also a governmental focus to crack down on money laundering giving investors an added sense of security.
Citizens of the Gulf Co-operation Council (GCC) countries – Saudi Arabia, Kuwait, Bahrain, Qatar and the Sultanate of Oman – and Britons do not need to acquire visas to enter the UAE, however unfortunately you will be denied entry if your passport shows any sign of travel to Israel. Expats can move freely among GCC countries.

Appealing to Arabs and Westerners alike, the Dubai International Financial Centre (DIFC) was created to fill a gap in the market for international Shariah banking, fund management and life assurance and boasts Deutsche Bank, HSBC and Standard Chartered Bank as some of its residents.

There are a number of markets and exchanges which may be of interest to overseas investors. These include the seven-year-old Dubai Stock Market, the Dubai Gold and Commodities Exchange (est. Nov 2005), The Dubai Mercantile Exchange, and the Dubai International Financial Exchange (Sept 2005). The latter is the first truly international stock exchange located between Western Europe and East Asia and lists securities from a number of different countries.

Encouragingly for expats, English ranks on a par with Arabic as the main business language and there are a wealth of lawyers, foreign banks and financial advisors who are more than willing to help overseas investors with their investment choices, whatever these may be.