When speaking and writing about Dubai, the high investment appeal of the country is often mentioned. However, the complete information is provided rarely, and you can hear only about a specific real estate project, some particular type of business or some financial instrument. In our review, we will aim to put together the information on the various investment opportunities in Dubai.
First of all, we would split investment opportunities into 2 major groups – active and passive. Active investment opportunities are investments in various business types in the UAE. Here it is almost impossible to be limited to any particular business line, as Dubai is the fast-growing megalopolis, where any business idea, in case of its appropriateness and being competently implemented, has very good prospects. Besides, there are taxes on business in the UAE and there is a very convenient system of hiring employees, which makes it possible to attract employees from all over the world.
Active investments that are worth investing in in the UAE also include business in the UAE, which you open on the foundation of the presently existing business. This may be opening a subsidiary or a branch, transferring of a part of the production or moving any other business cycle to the UAE, etc.
The second group of investments involves passive investments. Such investments may include securities, real estate, precious metals, etc. Every group of investments, which are beneficial when investing in such in Dubai, has its own advantages and factors that should be taken into account.
Primarily, before taking a decision, you have to determine your goals and investment strategy. For instance, a property in Dubai can be a very profitable investment, but the recommended investment period is from several years.
Real estate in Dubai can generate 2 types of income from the invested money – value increase and the attractive rental income. At the present time, the average level of income derived from real estate rent is from 5 to 7% per annum. What is important is that both the income from value increase of the property and the rental income are exempted from taxation in the UAE.
If you live permanently in Dubai and invest in securities in the UAE and abroad, it is also extremely beneficial as there is no taxation on the income generated from investments in securities for those living in the UAE and being a tax resident of the country.
Another attractive segment, which is worth investing in Dubai, is precious metals and gemstones. In the UAE, unlike in most other countries, there is no VAT or any other tax imposed when buying and selling physical bullions and gemstones. The margin of the traders who buy and sell bullions and gemstones is minimal and is regulated at the legislative level.
As it can be seen from our short review, the UAE possesses a number of investment advantages for the numerous tasks. The UAE is the country which actively attracts investors from all over the world and offers comfortable living conditions and a reliable legislation that protects the interests of investors.