Among other opportunities, Dubai and the UAE are known as leading investment hubs among locals and foreign investors. In 2021, the country recorded an annual growth rate of 6.2% despite other countries experiencing economic declines. Business and investor-friendly policies have contributed greatly to this performance and reputation.
This year, Dubai also ranked first in attracting foreign direct investments (FDI), reaching 492 FDI projects in the first half of the year – an 80.2% increase versus the same period last year.
Why exactly are people choosing to invest here? This blog will dive into some of those reasons, alongside a few of the best Dubai investment opportunities and how you can get started.
Why invest in Dubai?
- A central hub with access to global financial centers
When flying, Dubai is accessible to almost 70% of the world’s population. It also has time zone overlaps with London, New York, Hong Kong, Tokyo, and other nations – so your investments will always be moving. Dubai is a city where success never sleeps.
- An ideal tax environment
Tax incentives have always been a significant advantage for investors in Dubai, as the UAE is mostly tax free. There are no personal or corporate taxes, and investment interest is not taxed either. Real estate is one of the only investment types that require taxes, which are minimal. Residential properties often have a 5% municipality tax, while commercial properties require a 10% tax.
- Appealing business policies
Like tax incentives, many flock to Dubai & the UAE for their pro-business stances. The country boasts over 30 free zones for companies of all forms, regulations that make business setup easy, and a free-market philosophy that serves the needs of investors wherever they are. Lower cost opportunities are also growing so that middle-income citizens can start their investment journeys.
What are the best investment opportunities in Dubai?
- Real Estate:
Dubai recently reached a 12-year high in property volume and sale value, while the UAE is projected to record an up to 40% demand increase. Thus, investing in a Dubai property will take advantage of this upward trend and provide a source of passive income. Anyone in the UAE has a legal right to own real estate, and there are designated areas within Dubai where expats or nationals outside the UAE can fully own a property.
The UAE e-commerce market alone is expected to reach $9.2 billion in 2026, while Dubai’s modernity and openness to technology makes it a great space for all its possibilities. Ventures in digital banking, artificial intelligence, blockchain, and many more are welcome in the growing tech hub.
Dubai is also positioning itself to become a global cryptocurrency leader. Despite its volatility, the city is setting up regulations to enable its success while also mitigating possible risks. The UAE aims to grow the amount of cryptocurrency businesses throughout the 2020s, so it’s a wise bet to make an early entry into the industry.
- Tourism & Hospitality:
Dubai is a world-famous destination, flocked for shopping, culture, food, and other tourist places. Whether it’s restaurants, hotels, transport services, or retail, investors have a wide variety of travel and tourism business options that they can easily set up.
Participating in the Dubai stock market is also a smart choice. The UAE is in the middle of a stock market boom. Promising IPOs in healthcare, infrastructure, and education are available for investors willing to take a risk on the market. Stock investments can be made via the Dubai Financial Market which recorded a 133% net profit increase this year, and NASDAQ Dubai which connects investors to international exchange.
How can I start investing in Dubai?
Business advisory firms like Creative Zone can help you with your investment journey. We’ll work with you in surveying the Dubai business landscape and finding the strongest opportunity based on your goals and investment appetite. Our consultants will handle the documents, applications, and everything else you need, so you can focus on earning profits right away. Get in touch with us and let’s begin.