Dubai boasts a thriving economy that includes a booming tourist industry, attracting interest and investment from around the world As a highly industrialised federation, the UAE boasts one of the most developed economies on the planet, reflected in its GDP per capita, ranking 5th in the world and 3rd in the Middle East, after Qatar and Kuwait. Just like in Dubai, property prices and rental values are set to soar in many of the other emirates, driven by dramatically increasing land costs. In Abu Dhabi this year, they have already risen by 75%, according to HSBC Middle East. Strong capital appreciation of an average 20-40% p.a. (depending upon emirate) is expected to continue for some years to come, in line with the UAE’s ongoing economic success and insatiable demand for new properties. This, combined with rental yields of 6-10% p.a. is a recipe of success for astute investors. Today’s sophisticated investor expects to witness rapid and substantial price increases as property demand and construction costs continue to spiral ever upwards. The growth rate forecast for the UAE economy over the coming years is 13%, according to the Abu Dhabi Chamber of Commerce and Industry. The emirates have been liberalising their policies, encouraging foreign individuals and companies to invest and take part in this exciting growth process for many years. The absence of taxes and a relatively low cost of living are clear incentives for investors, and draws many foreign companies to establish activities in the Emirates’ free zones and industrial cities. Top quality construction and facilities including state-of-the-art shopping and recreational complexes continue to draw discerning investors, homebuyers and holidaymakers alike. Expatriate workers represent some 75% of the population. They seek high quality accommodation on which to spend their tax-free earnings, with obvious positive effects upon the market. Infrastructure programmes are constantly underway maintaining the quality of all UAE services to the highest of international levels. The importance of tourism has grown rapidly, with luxury facilities, great weather and easy access attracting foreign visitors and accounting for 0.5% of total tourist demand worldwide.
Foresight, excellence in planning and the unique ability to understand investors needs made the United Arab Emirates within the Top 15 best direct destinations for foreign investments.
The government of UAE has taken many steps to create an open market environment that’s convenient for foreign investors. The UAE is a member of the World Trade Organization (WTO), the Gulf Cooperation Council (GCC), and a signatory to the Great Arab Free Trade Agreement (GAFTA). Investment Treaties with 38 countries and Double Taxation Agreement with 49 countries. The UAE also signed an agreement with OECD to harmonize taxation issues for investors. The pathways for long term investors are highly accessible and been ranked “Low or Moderate” Risk factor. UAE has proven to be “STABLE” & a promising place to do business.
Hosting Expo 2020 in Dubai is likely to boost the attractiveness of the UAE as a base for overseas companies wishing to invest in the Middle East. Expo 2020 is expected to create over 250,000 jobs, especially in sectors such as construction, hospitality and aviation. By itself, this represents a sizeable economic impact. But beyond the direct effect, more jobs means more people, more families living in the UAE. And all these people need to live somewhere, eat out in restaurants, send their kids to school, and go see the doctor when they don’t feel well, and so on. This is what is called the multiplier effect. As a result, Expo 2020 will boost Dubai’s GDP both in the years leading up to the Expo and after it closes its doors. For all of your Ontime Business Setup needs visit us today and one of our friendly Customer Service Agents would be more than happy to assist you further. Alternatively you can contact our VIP Call Centre Today on 600 57 0007.