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WHY DUBAI
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LOCATION
FACTORS
In 2021, Dubai recorded nearly 16 million tourist arrivals, ranking it fourth among the world's most popular cities, just behind Bangkok, Paris and London, and ahead of cities such as Singapore, New York, Tokyo and Istanbul, despite their larger populations and deeper historical roots. Dubai also experienced the highest annual growth rate of any city in the top ten, underlining its appeal as a global travel destination. In addition to its thriving tourism industry, Dubai has become a vibrant cosmopolitan hub in recent years. The city's appeal to multimillionaires from around the world has been pronounced, a trend that predates the influx of Russian investors. This is due to a number of advantages that the UAE in general, and Dubai in particular, enjoy over other global cities, including excellent weather conditions and superb infrastructure.
- The tax regime in the UAE favours the wealthy, with no income, withholding, capital gains, inheritance or wealth taxes. Corporate tax is low at 9%, while sales and value-added taxes are modest at 5%.
- The country's commercial law is very similar to English law, and its courts operate with speed and efficiency, particularly in contract law. The UAE is ranked ninth ninth in the world by the World Bank, ahead of Germany, Austria and Switzerland.
- Trusts based on the English model, as well as foundations, are enshrined in corporate law and offer discretion.
- Dubai's Land Department regulations provide extensive protection to investors against property developers. For instance, in off-plan property transactions, all payments are first deposited into a trust account, from which only construction firms, wages, and materials can be paid.
- A robust banking sector guarantees access to the capital market and credit. There is a high degree of capital mobility.
- An efficient administration and legislative framework can swiftly adapt to new challenges. In the category of "Government Efficiency," the UAE ranks third globally in the 2022 World Competitiveness Ranking.
- Four international airports in close proximity with direct flights to B-cities in Europe and the USA on a daily basis, facilitated by five national carriers including Emirates, Etihad, FlyDubai, Air Arabia and WizzAir Abu Dhabi.
- The country has an excellent road network, ranked in the world's top 10, ahead of Germany.
- Jebel Ali, one of the world's largest container ports, ensures low-cost freight transport, and Etihad Rails will connect regional economic centres efficiently and cost-effectively in the future.
- The country's healthcare system is outstanding, with branches of the best hospital service providers from the USA and Europe in the private sector. The Cleveland Clinic in Abu Dhabi is considered the best hospital in the country, while its "parent" hospital in the USA ranks fourth among the best hospitals in the USA in 2022.
- With a projected per capita GDP of $77,272 in 2022 by the International Monetary Fund, the UAE ranks among the most highly developed countries in the world (7th globally) - ahead of the USA, Germany, and Austria, and two places behind Switzerland. Furthermore, the UAE's economy shows the best trend, with the World Bank projecting projecting high economic growth of nearly 6 % for 2022, compared to the Eurozone and the USA.
- The population is growing with a demography that ensures future sustainability.
- The country has a stable currency with a fixed exchange rate to the US dollar, and low low corruption. The UAE's sovereign wealth fund is the fourth largest in the worldand the country has a balanced budget. The International Monetary Fund projects an annual budget surplus from 2022 to 2027 of 2.7 % to 7.6 % p.a.
- There is a high availability of natural resources and low-cost energy, with an unsubsidised kWh costing around 4 cents to the end consumer, compared to 40 cents in Germany.
- The UAE is also moving towards economic diversification with a focus on high-tech industries, high-value services, and renewable energy. The contribution of fossil fuels to Dubai's budget was only 3% in 2019 and 11.5% for the entire UAE in 2020 (compared to more than 60% in the 1980s). In addition, the UAE has commited to net-zero greenhouse gas emissions by 2050. Since 2019, new buildings have been subject to binding energy standards, and Dubai host the United Nations Climate Change Conference in 2023.
- The United Arab Emirates (UAE) boasts a remarkable absence of violent crimes and street crime, in addition to its strict protection of individual rights. According to Nombeo's Crime Index, the UAE is considered the second-safest country in the world.
- The country also caters to the highest standards of lifestyle, encompassing all facets that enhance the quality of life such as leisure activities, gastronomy, luxury shopping, education, and cultural offerings. In fact, Dubai has clinched the top spot for "Lifestyle" in the 2022 "Global Lifestyle Review" by Knight Frank.
- The UAE's small geographical area is home to diverse cultures that have retained their unique identities in specific neighbourhoods.
- In addition, recent legal reforms have led to greater social liberalisation, which will be discussed later.
- The UAE maintains a barely visible and largely unarmed police force.
- The region boasts abundant sunshine, sea, and a pleasant climate, except during the summer months. In addition to the desert, there are mountains in the north and the Indian Ocean with many diving opportunities reachable within two hours by car.
- There are no major earthquakes or other natural disasters.
- Situated at the crossroads of "East and West," two-thirds of the world's population can be reached within eight hours by plane.
- The UAE maintains a policy of political neutrality.
- While maintaining close economic ties with Western countries, the UAE does not align itself with any particular bloc.
- The country boasts developed natural resources and energy reserves, ensuring that it is not affected by energy, resource, or inflation crises.
- In fact, the UAE is one of the highest per capita energy consumers in the world, and is currently expanding its use of renewable energy and nuclear power, ensuring sufficient energy supplies in the future.
- The UAE also holds a leading position in international trade, with a balanced trade balance.
- Maintains strong defense forces that adhere to NATO standards.
- The UAE has a highly investor- and landlord-friendly real estate law, with clear property rights, registered land ownership, transparent and non-appealable rent adjustments, and no tenant squatting.
- In the Henley & Partners New Global Real Estate Index, the UAE ranks first globally, aggregating factors such as quality of life, economic factors, and real estate data.
- The Jones Lang Lasalle Global Real Estate Transparency Index of 2022 identifies the UAE as a "Top Global Improver".
- According to the Global Real Estate Bubble Index of 2022, compiled by UBS Bank, the risk of a real estate bubble is very low in the UAE, with Dubai being the second least risky city in the world. Real estate in the UAE is not considered overvalued. In contrast, UBS identifies cities in Germany and Switzerland as highly susceptible to real estate bubble risks.
OPTIMAL INDICATORS
As the number of affluent and wealthy individuals residing in a city increases, this naturally has a disproportionately positive impact on the real estate market. The luxury real estate market in prime locations offers particular global stability and potential for value appreciation. Secondary locations, on the other hand, offer high rental yields and long-term potential for value appreciation, as the city continues to grow.
German Partners provide transparency in this complex market and offer comprehensive guidance.
RESIDENCE & CITIZENSHIP