Dubai’s new visa rule will promote long-term investment
Without a doubt, one of the most exciting pieces of news in the past few weeks was the announcement that investors into the UAE market and certain categories of skilled professionals will be granted 10-year residence visas, and that all mainland companies will now be able to have 100 per cent foreign ownership. As someone whose work involves, to no small extent, inviting new investments into Dubai’s property market, I could not be more thrilled. This is a wonderful new development for the city.
Dubai has always been one of the most investor-friendly cities in the Middle East, especially in the real estate sector. I have known people in the UK and the US who have considered the possibility of investing in Dubai, and I have always endorsed that idea based on four main points.
Firstly, despite the many up and downs that the market has faced, Dubai continues to see a growing roster of fantastic real estate projects that are reshaping the landscape of the city in a literal and metaphorical sense. Expo 2020 and the expected influx of visitors is a driving factor, but it is also a commitment to maintaining the city’s position as a top global destination for residents and visitors alike.
The second key point is that Dubai delivers on the promises it makes. The Burj Khalifa, Palm Jumeirah, Mohammed Bin Rashid City – all of these were ambitious and, some might say, far-fetched ideas that Dubai has brought to life one at a time. Even now, the foundations of Mohammed Bin Rashid City are solidifying as the first phase of the project starts to deliver and we already find ourselves looking at phase two.
Third, and perhaps most important when it comes to investment, is the fact that Dubai offers returns that far outstrip those of other cosmopolitan cities around the world, such as London, New York or Hong Kong.
The fourth point is that Dubai’s regulations and policies have been designed to make things easier for investors, minimizing the paperwork and process involved and the introduction of VAT notwithstanding, providing a tax-free haven. This new announcement only adds to that point, and possibly creates a fifth point for me to emphasis.
Investors have been focused primarily on short-term gains in Dubai, funneling money into the economy and watching their capital grow only to take the money out and re-invest it elsewhere at an opportune moment. We should now see a shift toward more long-term investments with an aim to consolidating an investor’s local portfolio.
The ability to fully own and operate a company in the UAE without the need for an Emirati partner will further strengthen investment not just into the general market but also into commercial properties. I imagine there will be a surge in homegrown businesses and startups in the near future, making the economy more competitive and ultimately, more profitable.
- Dubai luxury homes set for a rebound July 31, 2018
- Dubai’s new visa rule will promote long-term investment July 7, 2018
- Dubai best globally for infrastructure: Knight Frank March 22, 2018
- AED 204 billion of real estate transactions in 9 months November 18, 2017
- Dubai Land Department reveals the top 10 nationalities that invested in Dubai’s real estate market over the past 18 months October 4, 2017
- Is this how Dubai will look in 2030? August 2, 2017
- Damac, Amlak offer second home financing July 25, 2017
- UAE is the second safest country in the world July 23, 2017