When it comes to the world’s most preferred investment destination, Dubai tops the list. The city has emerged as one of the most prosperous, glamorous, and business-friendly destinations in the world. With its global infrastructure, a huge population of ex-pats, and pro-business government policies, it is not too hard to see why investors are flocking to Dubai.
While the city has become famous for being one of the hottest tourist destinations in the world, the city continues to be one of the safest in the world in terms of the low rates of crime. Together with a stable political regime, it has become a safe haven for new business and investments.
One of the many reasons why Fortune 500 companies are moving to Dubai is because of its strategic location. Businesses have found that operating out of Dubai enables them to do business in the Indian Subcontinent, Africa, and obviously, the Middle East.
In this guide, we are going to speak with leading legal experts from a dubai law firm that handles new business incorporations. We are going to ask them to help us identify why and how Dubai has emerged as one of the most sought-after investor destinations in the world.
The Major Investment Hubs in Dubai in 2022
In this section, we are going to list down five industry niches that investors can look at in Dubai-
1. Real Estate-
Some of Dubai’s properties have been listed as being on the world’s most expensive list. For example, Business Bay, as well as Dubai Land, are premium real estate destinations that are growing drastically in value and appreciation. While Dubai, like any other part of the world, was hit by the pandemic, the property market in Dubai is slowly experiencing a rebound.
2. Travel and Tourism-
The city of Dubai enjoys the reputation of being a region where tourists spent over $30 Billion in one single day! This is more than Vegas, or Paris, or any other part of the world. Dubai’s travel and tourism industry is set for a major boom especially after the pandemic. To put things into perspective, the annual rate of growth in the region has been over 10% for the last five years!
3. Hotel and Hospitality-
Restaurants, resorts, hotels, guest houses, you name it, the city of Dubai sees high levels of occupancy across all of them. With millions of tourists, international businessmen, and ex-pat families coming to Dubai, the hotel and hospitality industry continues to grow and operate in double digits. Who wouldn’t want to stay a night at the world-famous, Burj Al Arab, right?
4. Green Energy-
While the Middle East has historically been associated with oil and gas, the region is slowly moving to greener and cleaner sources of energy. The government has realized that the abundance of solar energy can help it move away from traditional sources of energy. It is inviting businessmen with incentives to innovate on green energy generation in the city.
5. Agriculture Technology-
The arid nature of the region means that Dubai has to buy food items from different countries at a high price. In recent years, they have started investing and experimenting with hydroponics, aeroponics, and other vertical farming techniques. As an investment option, this area is set for major growth in the next coming years as Dubai looks at building sustainability in food.
Reasons Why Investors Prefer Dubai over other cities in the world
In this section, we are going to list down some major reasons why investors are moving their capital and resources from other parts of the world to Dubai-
- The No-Tax structure in Dubai is by far the biggest draw for investors when it comes to making investments. Zero income, corporate, or VAT means that they can enjoy and maximize profit margins without having to worry about the state’s interference.
- Dubai is one of the safest cities in the world. The low rates of crime mean that businesses need not worry about suffering from losses thanks to criminal elements. The government has a strict no-toleration policy on crimes and criminals.
- Dubai has created multiple Free Economic Zones that have been set up to ease the process for investors. For example, the incorporation and other paperwork can be completed within a short span. This means that no time is wasted in starting a business.
The Bottom Line
According to financial experts, Dubai is going to dominate the global economic markets in the next decade. With more and more ex-pats moving to the city, there will be no dearth of skilled corporate professionals that would be able to man new business set-ups. If you have any questions or would like us to clarify any of the points mentioned in the article, please let us know in the comments below.