Investment

Dubai’s economy is flourishing, but new businesses are choosing to migrate there because of the city’s reputation for safety, quality education, accessibility, tax structure, and modern healthcare systems (as demonstrated by the city’s swift response to the coronavirus outbreak).Many areas of the economy, including trading, export, import, logistics, financial services, hospitality, event management, tourism, construction, and so on, have transformed the United Arab Emirates into a global trading hub and ultimate investment destination. As a result, the United Arab Emirates is a popular choice for many entrepreneurs because of various factors. The top ten reasons to do business in Dubai are listed here: 1. Growing economy of DubaiDespite the pandemic, the UAE’s economy remained robust. In other words, tourism rebounded the fastest in the world.Despite the Covid-19 situation, the United Arab Emirates plans for a brighter future by aiming to double its economy by 2030. Entrepreneurs, Investors, and creative minds can also use the country’s state-of-the-art infrastructure, superior connectivity, highly developed incubators, accelerators, investors, various incentives, and recent legislative modifications. 2. Ideal LocationA suitable venue to conduct many economic activities, such as international trade (import and export), logistics, tourism (hospitality), and events (event management), Dubai’s strategic location allows for easy access to all three continents. Dubai is in the center of the 400-mile-long shoreline of the United Arab Emirates. Because it has sea and air access, Dubai is an ideal transit hub for products moving between East and West. 2.5 billion consumers in Gulf, Africa, Asia, and CIS nations may reach through Dubai. 3. Favorable Tax Structures and Regulatory for BusinessesInterestingly, many entrepreneurs choosing Dubai as their base of operations are ex-pats from high-tax cities and nations like the United States, the United Kingdom, Switzerland, and France. In Dubai, profits are tax-free, yet it is vital to understand the tax rules of every individual’s home country. People who favor self-regulation highlight Dubai’s regulatory environment as an additional reason to go there. Corporate and personal income taxes and withholding tax exemptions are available in the United Arab Emirates’ 38 free zones, established to encourage foreign investment.The UAE’s economy is considered one of the most liberal and diverse in the Middle East and North Africa. Most businesses in Dubai are exempt from taxes, except for branches of foreign banks, hotels, and oil and gas corporations headquartered in the United States.Dubai does not impose any of the following taxes:Personal income taxValue-added TaxCapital gains taxCorporate TaxWithholding Tax 4. A Safe Place to Live and WorkEntrepreneurs looking to launch a business in Dubai can find all they need in the city’s innovative design centers, startup hubs, and strategic collaborations. One of Dubai’s distinctive features is its emphasis on health and safety due to its status as one of the safest cities on Earth. Dubai is among the countries with the world’s lowest crime rates. While the world average is 6 to 8 crimes per 100,000 people, the number of severe crimes in the United States is only 0.5 to 1 per 100,000. Furthermore, the United Arab Emirates is one of the most stable countries. The United Arab Emirates has attracted many foreign investors and enterprises because of its high security and political stability. A safe environment is indeed necessary for a business to thrive. 5. Residency PermitA UAE provides Residency Visa if you open a business in Dubai or other Emirates in the UAE and your family members and expatriate staff. Having a UAE Residency Visa offers various advantages, including opening a current account in UAE banks, leasing an apartment for an extended period, and entering and exiting the UAE multiple times.Golden Permits, long-term residence visas that allow business owners and their staff to live and work in the UAE without the historical necessity of having a sponsor, were made available in 2019 to make relocation easier for businesses. In contrast to the past requirement that a company outside the free trade zone have a local partner with at least 51% ownership, these visas are awarded to qualified individuals and their families for 5 or 10 years, renew automatically, and offer 100% ownership of one’s business. The goal is to make the UAE more appealing to business people, particularly startups and business owners. 6. World-class Health CareHealthcare in Dubai is excellent, with top-notch facilities and highly qualified staff overseen by the Ministry of Health and Prevention. In addition to the government’s four hospitals, Dubai, Rashid, Latifa, and Hatta, more than 40 other hospitals in Dubai. Healthcare in Dubai provides healthcare accessible to all residents, and employers need to provide health coverage for their employees’ costs.Living a healthy lifestyle is impossible without finding something to do in Dubai. Fitness-conscious visitors and locals alike can enjoy the city’s pristine beaches, delicious cuisine, and bustling streets great for a stroll. Sports including skiing, polo, cricket, tennis, cycling, and camel riding are most popular. 7. Retain capital and profits in fullRemittances of capital and profits are not subject to any limitations in Dubai. However, many businesses prefer to keep their money in the United Arab Emirates because of its tax-free status. In addition, there is no foreign exchange restriction in the UAE, and the US dollar and the UAE Dirham have a steady exchange rate of US$1.00 to AED 3.678. 8. Transportation and InfrastructureThe Dubai International Airport (DXB) serves over 100 airlines and 260 destinations worldwide, making it one of its best public transportation systems. In addition, Dubai International Airport (DXB) is the world’s largest and fastest-growing passenger and cargo hub, according to the Airports Council International.You don’t have to be tense about finding an office, a retail shop, a manufacturing unit, or a warehouse in Dubai if you’re launching a business there. There has been a tremendous amount of new construction on a vast scale in recent decades in residential, tourism, industrial and commercial use. New highways, improved public transportation, and a new airport are all in the works. UAE’s infrastructure and transportation have been ranked among the best globally by the WEF Travel and Tourism Competitiveness Report. However, there was a significant gap between the quality of roads in the country and the quality of air travel, ports, and ground transportation. There are two kinds of ports: maritime and aviation.Dubai International Airport is the region’s largest airport and one of the region’s largest seaports (Jebel Ali Port). Importing and exporting items to and from Dubai may be done via sea, land, and air, so there’s no need to worry about the logistics of international shipments getting here or going there. 9. Corporations with a global reachMicrosoft, HP, Oracle, Nokia, Sony, and Boeing are just some of the world’s most well-known multinational corporations with regional offices in Dubai. In addition, Procter & Gamble, Adidas, and BBC World have regional offices in Dubai. Moreover, numerous internationally famous colleges have campuses in Dubai, such as the American University, Wollongong University, Michigan State University, London School of Economics, Rochester Institute of Technology, London School of Business, and Hult International Business School. 10. Living standardsFinally, the excellent quality of life and living conditions that one may enjoy in Dubai are another reason to choose the Emirate as a company location. Among the 160 countries studied, the UAE came first in the Middle East and North Africa for overall quality of life and 15th globally. Furthermore, the United Nations has recently placed the United Arab Emirates as the 14th happiest country. Therefore, you can be more productive and inspired by the pleasant environment while enjoying an excellent quality of life and living standards.As a result, Dubai has become one of the world’s most important cities. Businesses worldwide are interested in doing business in Dubai because of the government’s strong support for small and medium-sized enterprises (SMEs). Additionally, Dubai’s Smart City 2021 initiative is changing the city, revolutionizing government service delivery, encouraging private sector partnerships, and increasing happiness. In addition to drawing worldwide attention, Expo 2020 Dubai is expected to boost domestic travel, which grew during Covid. The United Arab Emirates’ position as a global melting pot is admirable, with 180 nationalities in the UAE. The Bottom LineWhile Dubai’s position as the world’s one favorite spot is undeniable, it will only get stronger in the future. More and more people are flocking to do business, work, and live in Dubai for all these reasons. Nearly 90% of Dubai’s population comprises expatriates from 200 countries worldwide. Primarily, they’re drawn to the Emirate by its commercial and investment opportunities.   

Over the past few years, we witnessed healthy growth in the industrial real estate sector—warehouses, distribution centers, flex spaces, and other industrial buildings with storage facilities in Dubai. Year-over-year (YOY) rent growth has been positive and the availability rate has continued to decline.Property prices in the UAE will continue to grow in 2023, driven by supportive economic restructurings and an effective vaccination program that has brought hastened improvement from the coronavirus stricken slowdown last year.Over the next 10 years, Environmental, Social, and Governance (ESG) standards will have an impact on investor property investment and purchasing decisions in the GCC, according to a report by Mashreq, the Dubai lender controlled by Al Ghurair.According to CRC data, with 88% growth, the warehouse sector embellishes with the highest increase in commercial leasing in Q1 2022 over Q1 2021. The overall number of leasing transactions is up 7%. This is due to the increase in the stock that equals the demand for bigger storage spaces. The businesses in Dubai have no choice but to seek bigger warehouses for their expansions.Industrial Properties in the UAE will attract more investor demand, while the residential market will also see substantial growth. On the other hand, quality warehouses for the e-commerce industry continue to fuel demand considering the Middle East one of the most competitive markets for online shopping.This has proven to be a significant reason for the demand for warehouses, distribution sites, and fulfillment centers that support the fastest delivery shipping systems. Newly build facilities for warehouse rents, constructed to international standard, primarily located in free zones, ranged from AED 35 per sq. ft. per year during 2020.A number of small and medium enterprises are now seeking annual lease contracts and yearly rental escalation in comparison to three or five-year terms for their industrial units due to the constrained business environment during 2020.Along with that, many multinational occupiers are gradually finding asset-light models, thus presenting more excellent opportunities to participate in the industrial market through sale and leaseback structures, among others.Key TakeawaysThe requirement for storage and fulfillment centers has increased thus boosting the demand for warehouses in the region. Many retailers have swiftly adopted the digitalization and online sales trends after they posed challenges of lower spending and fewer shoppers in brick and mortar.The main drivers for these regional and global occupiers entering or expanding more in the UAE are the country’s efficient management of Covid-19, vigorous infrastructure, and ease of doing business. The rise in online sales in the past months has also played a vital role in businesses investing more and expanding to cater to sales trends.According to CRC, they recorded an increase of 32% in registered tenant leads as compared to the same period the previous year. The staggering 128% increase in demand for warehouses is also an indication of how the companies showed interest in industrial properties. The top reason for the demand for commercial properties is because the business that downsized during the pandemic started to get back to bigger office spaces. Changes in purchase patterns during the pandemic also pushed companies to expand their warehouses to meet the demand.Get in touch with CRC for your commercial or industrial property requirements in the country and receive professional help for buying, selling, leasing, or investing. CRC is the leader in Commercial and Industrial properties in the UAE.   

Starting a business in the UAE is fairly easy, making it one of the most desired cities for entrepreneurs and investors interested in a startup. The local government encourages both investment and startups in many ways, and in the past year has even rolled out long-term visas for investment.However, like anything there are both advantages and disadvantages to take into consideration and it’s important to do thorough research and seek professional advice with big financial decisions.In this blog, we have listed some of the pros and cons to consider when opening a start up in Dubai. ProsMultiple set up optionsIn the UAE, there are 3 options for business set up, these include, mainland, offshore or freezone. Each option holds its own features and benefits and it is important to fully understand each, in order to make the right decision for you and your business. Depending on your type of business will determine the option that best suits. For example, a mainland company structure will offer you the freedom to operate your business in any part of the emirate. Whereas, a freezone will allow you to benefit from a tax free environment and 100% ownership of your business. Whatever the case may be, you will be sure to find an option that fits both your needs and requirements. Growing economyIt’s no secret that Dubai is host to a very healthy economy and provides opportunities for both businesses and individuals to thrive, grow and develop. Not only Dubai, but the UAE as a whole offers both comprehensive and transparent business procedures as well as a stable political situation and an abundance of resources. Which makes this an ideal location for operating a business. Diverse industries The opportunity to develop a successful company here is available through many different industries. Whether its manufacturing, hospitality, retail or services, with the right business structure your company has the potential to thrive.ConsTrade limitationsAlthough there are many benefits that come with setting up a business in a freezone, if you choose this option you will experience trade limitations, meaning that you will be restricted to performing all business operations within the confines of your free zone only. Although, depending on your type of business, it is possible to obtain an agreement with a distributor in order to operate in mainland areas. Confusing set-up proceduresIf you are unfamiliar with the UAE’s laws and procedures, setting up a business may feel like a difficult and confusing task. There are multiple consulting companies that can assist you to ensure your business set up is a quick and easy process, we would recommend enlisting the help of one of these companies, if you are new to Dubai and the world of business.Do you already own a business in Dubai and are looking for Commercial space to rent or buy? Get in touch with one of our agents today.   

Dubai is one of the world’s most enticing expat locations. The warm weather, high standard of living, and low crime rate are just a few of the reasons why it has been dubbed one of the best cities in the world to live in. Plus, Dubai’s economy just keeps on growing, making the wealthy city a number one choice for those looking to enhance their career.The economic success of Dubai has even prompted many expats, business owners and retirees to buy properties instead of renting. This is a useful investment strategy which helps achieve some capital gains over time as their Dubai properties increase in value.However, as always, there are some risks associated with buying a property in a foreign country. Below we’ll share some information about buying property in Dubai and the risks associated with it. Is it easy to buy property in Dubai?Over the past 20 years, the United Arab Emirates (UAE) has become much more welcoming to forign investment. A variety of platforms have even been launched which are designed to encourage foreigners to invest in the country through starting a business or buying property. The government have also been particularly proactive when it comes to assisting retirees, they even launched a programme in 2020 called Retire In Dubai. Benefits if buying a property in Dubai Below are some of the benefits that come with purchasing a property in Dubai:Safe and stable country Dubai has recently been named the safest city in the world (for women in particular) which makes it a great location to invest in a property for you, your family or your business.Reasonably priced real estateI know what you’re thinking, the UAE is one of the wealthiest nations in the world, right? Right! But surprisingly, it is still possible to find reasonably priced properties in Dubai, as opposed to other popular cities like Los Angeles. Excellent rental yieldsOne of the reasons Dubai is so popular with retirees, is the fact that rental yields can be extremely high. Investors have been known to achieve as much as 12% rental yield from property investments.Long term capital growth The UAE economy is anticipated to keep on growing through to 2030 which means property prices are likely to increase. Although it is important to check the current condition of the market with a financial advisor before investing.  Is it safe to buy a property in Dubai?No matter where you are in the world, buying a property is a significant financial decision, so caution is always advised. We recommend consulting with experienced financial and property experts to ensure you have the most up to date information relevant to your location and circumstances. Although generally speaking, it is relatively safe to buy a property in Dubai. However, the laws are slightly different in Dubai as opposed to other countries, which means running into a legal issue when buying or selling a property may lead to difficulties. To avoid these types of situations, it is important to always be diligent in your negotiations and consult with a lawyer to oversee any legal transactions. The Cost of investing in Real Estate in Dubai The price of properties in Dubai have fluctuated over the years. However, the current price of Townhouses & Villas for sale in Dubai range from 1.5M to 16M and Apartments from 280K to 2.9M.Top Villa communities include: Palm Jumeirah Jumeirah Island Jumeirah Golf EstatesEmirates LivingTop Apartment communities include: City WalkPalm Jumeirah Dubai Festival City Dubai Creek Harbour Additional FeesAlthough the initial Sale price may be within budget, it’s important to note that there are some additional costs associated with buying a property in Dubai and these include Government, Mortgage and Agency fees.  The Risks There are many success stories that have come from investing in property in Dubai. However, there can be some risks involved which you should be aware of, these include:Real Estate scams Although Rare, some expats have fallen victim to scams from those posing as real estate agents. You can avoid this by performing background checks and hiring a good legal team to manage your transactions. Choosing the wrong neighbourhoodAlthough many parts of Dubai are extremely nice, there are some communities that lack relevant amenities that buyers, renters or businesses will prefer. Avoid this by making sure you have conducted relevant research into the right neighbourhood to fit your circumstances. Choosing an area with lower rental yieldsReceiving excellent rental yield is one of the best reasons to invest in property in Dubai. It’s possible to gain 7% for a villa and as much as 12% on an apartment. Although, this isn’t true for some parts of the city so make sure you do your research to learn the parts of the city that are best for this. The UAE economy may decline Like any economy, there is always a risk of decline, however the UAE government is aware of any risks for the future and are taking action to promote sectors that will ensure their economy continues to grow.  Overall, there are both benefits and risks involved with investing in property in Dubai. The surest way to succeed is to ensure you complete in depth research and work with trusted professionals.If you are interested in purchasing a commercial property in Dubai or Abu Dhabi, get in touch with one of our trusted agents today. They can help you every step of the way, ensuring a smooth, stress-free process and guaranteed professional support.  

Financing a commercial property through a loan can be challenging, with most people, therefore, opting to pay for their property in cash or through other financing options. With that being said, a commercial loan is possible and is a completely legitimate way of purchasing your property. Before deciding to apply, there are some aspects of this type of loan that individuals should know. Commercial loan rates are highly variableWhilst interest rates on commercial properties are generally higher than that of a typical loan, they are also highly dependent on the client’s personal circumstances as well as the property that they wish to secure a loan on. Individuals should also be aware that there can be hefty prepayment penalties if you are in a circumstance to repay your commercial property loan before its completed term. As such careful thought should be made about creating reasonable timeframes for your loan repayment, factoring in both high-interest rates and prepayment penalties.Certain factors that can come into play include the property developer, the age of the property, as well as whether the property is going to be used as an investment or if it’s for the client’s company. The loan to value rate should also be taken into consideration, as for commercial properties, they can be very low, with most banks generally requiring a 40% down payment. Study the market Before deciding on purchasing a commercial property, individuals should study the market carefully. Firstly, you should understand what type of property you want. The commercial property encompasses a wide range of building and property types, including office space, warehouses, retail units, or even purpose built properties such as schools or hospitals. Potential buyers should carefully consider the reasons for choosing a commercial property. Will you be the end user or are you planning on using the property as an investment opportunity. It is important to also research different locations and compare average prices. This can be done by looking at commercial real estate market reports or by discussing them with a commercial property specialist. Before starting any finance application, you should determine what you are willing to pay and how much you are willing or able to part with in terms of loan repayments. This may also help decide what type of property and areas are available for you to purchase into. Find a broker experienced with commercial real estateA broker experienced in commercial real estate will help their client evaluate their different options, help them make an informed decision about what they should purchase as well as applying for a pre-approval on your behalf with the bank. Not only would an experienced broker ensure a faster application process with the bank, but will have much greater negotiating and bargaining power when it comes to discussing the terms of the loan. Inform the bank of your choice Once you have secured pre-approval with your mortgage broker,  and decided on a property, the bank will then perform a valuation of the property and decide if it is worth the price you have agreed. Provided the bank approves, you will then get an offer letter to accept the loan and you can proceed with purchasing your commercial property. If you have any other questions or queries about getting a commercial loan, then contact one of our expert advisors, who will be able to talk you through the entire process and make it as smooth and seamless as possible.