1. REAL ESTATE
Currently real estate is hitting all-time highs, in some cases passing more than USD $1 billion per day in transactions. Investors are flooding in from all over the globe, chasing a vibrant property market with rental Return on Investments (ROI’s) that are simply impossible in other countries. In fact, currently the largest group of property investors are working professionals already in the Emirates, most of whom are choosing to mortgage a property to live in instead of renting long term in a sharply rising rental market.
2040 Urban Master plan
The property boom shows no signs of slowing down, with numerous projects being relaunched all with the goal of making Dubai the best place in the world to live and work. A great example of a mega project in the UAE would be the Palm Jebel Ali that is twice the size of the hugely popular Palm Jumeriah and aims to house circa 250,000 residents by 2040. The project was officially relaunched earlier this year and investors have jumped at the opportunity and if the original palm is anything to go off, the project once completed will be one of the most sort after residential locations in the world.
However, the 2040 Urban Master plan includes so much more, with massive new projects across the city. Completely new infrastructure and improvements to existing infrastructure have already begun, all with hopes of turning Dubai into an even better “ultra-modern metropolis” than it already is.
2. JOB MARKET
Some of largest fortune 500 companies have their regional headquarters here in the region and professionals are targeting the Gulf based roles over the equivalent European / North American roles in ever increasing numbers.
High paying jobs and zero income taxes attract some of the best talent to the UAE from around the world. This is true especially for young professionals, who are currently struggling with stagnant job markets and minimal salaries in their home countries.
3. COMPANY FORMATION / RELOCATION
Company relocation for small, medium, and even large corporations is incredibly popular. Many business owners are choosing to relocate their operations to the Emirates or open a branch of their business to capitalise on the local market. The UAE, and especially Dubai has a very “open to business” mindset, and business owners are reaping the benefits of this by relocating to the UAE.
There are numerous free zones in the UAE that offer simple and affordable company setup solutions, even the mainland now has the option to own your business as a 100% foreign investor. Despite the introduction of 9% corporate tax on profits above 375,000 AED annually, the market is booming with foreign companies establishing a presence in the Gulf. Investors find that the low taxes, teamed with the vibrant job market, allow them to grow and scale their businesses much faster, ultimately leading to more profit, more growth and a better working life for themselves and their workers.
The UAE is also a very popular place for first time business owners. Low startup costs and tax waivers make the UAE one of the best places in the world to open your first business. Again, the thriving market offers much more collaboration and business opportunities than other jurisdictions, leaving startups with a significantly higher chance of success.
4. SAFETY / QUALITY OF LIFE
The safety and quality of life in the Emirates is no doubt a worthy mention. Dubai was voted one of the safest cities in the world and serious crime is significantly below average on a global scale. Warm weather, an abundance of beaches, parks, and activities, along with the safety and vibrant cultural mixing pot, all help to make Dubai a wonderful place to live.
5. EDUCATION
High quality education campuses from nurseries to universities are spread across the county, while offering British, American, and other curriculums. The UAE is also home to some of the top hospitals and medical clinics in the region, filled with top talented medical professionals from around the world.
6. LEISURE
Lastly, Dubai is home to some of the best hotels, restaurants, and attractions in the world. Increased disposable income coupled with the warm climate allow more time for relaxation and enjoyment with your friends and family, again making the Emirates even more attractive for people of all ages and backgrounds.
WHAT ARE THE CHALLENGES FOR FOREIGN INVESTORS IN THE UAE
Below are some things to keep in mind when considering to invest in the UAE:
- The laws and regulations – It is important to check the local laws before setting up your business in the UAE.
- Shari’ah law – The UAE follows Shari’ah law, which is different to the Common Law. It is always a good idea to do your research around this and how it may affect you and your family. If you are planning to live or invest in the UAE, the regulations around inheritance, relationships and how to conduct yourself in public are worth paying attention to.
- Strict anti-crime punishments – Not adhering to the laws set by the UAE government can lead to severe punishments or fines.
- Cost of living – The same as any modern city, the cost of living is always something that is on the rise, in particular rental prices in the current boom. This however could be seen positively if you are going to be investing in a property to later rent out.
- Weather – The summer months can be hot and quite difficult to get used to if you are relocating from a country with a cooler climate. The winter, spring, and autumn weather however is very pleasant with almost year-round sunshine.
CONCLUSION
The UAE has emerged as one of the top places in the world to invest, work and live in the post pandemic world, with signs pointing to even more improvements and investment opportunities in the future.
At Creation Business Consultants, our expert team can assist you from end to end on your UAE journey. We will make sure you get off to the right start and continue to prosper, enjoying the many benefits the UAE can offer.
Creation Business Consultants will guide you on the entire company registration process safeguarding a streamlined process. We provide a wide range of services to assist you in setting up your business in Dubai and the UAE. Once your UAE company is incorporated, we can support on all post company setup processes that will ensure your UAE business is operative as soon as possible and is compliant with regulations of doing business in the UAE.
For a free consultation with our corporate structuring and tax team, email us at [email protected] or call UAE +971 4 878 6240.
