Why Invest In Dubai

• Best regulatory environment - an ultimate financial hub where there are

1. No corporate or individual taxes
2. No foreign exchange controls,trade barriers or quotas
3. No restrictions on capital repatriation; and
4. 100 per cent ownership in free zones.

• Strategic location - with its strategic location in the Arabian and Persian Gulfs, the metropolis has become an active trading destination in the GCC with modern land, sea, and air cargo infrastructure, and world-class free zones.

• Free Trade Zones in Dubai-Currently there are 8 active free zones in Dubai. They are:

1) Jebel Ali Free Zone
2) Dubai Airport Free Zone
3) Dubai Internet City
4) Dubai Media City
5) Dubai Gold and Diamond Park
6) Dubai Cars and Automotive Zone (DUCAMZ)
7) Dubai Knowledge Village and
8) Dubai Metal & Commodities Zone (DMCC)

Strong economic outlook - it has consistently strong economic outlook; with its economy based on trade, manufacturing, finance, IT, tourism and real estate, Dubai has become the financial capital of the region. Dubai's real gross domestic product (GDP) surged to AED 198 billion in 2007. The emirate is predicted to sustain an average.

• labor force - it has access to huge talent pool of highly-skilled but low-cost labor; host to work force of diverse nationalities.
  
  
• Investors haven - export sector has an annual average growth rate of 28 per cent; Dubai's imports also increased by 15.5 per cent in 2005 to 2006.

• Stable currency - the dirham remains stable in the international exchange; the currency is trading against the US dollar at around 3.67 and against the Euro at around 5.75.    

• Tourist destination - Dubai's skyline is now recognized all over the world, with some of its skyscrapers winning fame in competitions abroad; home to the world's tallest tower, the Burj Dubai and awe-inspiring Palm Trilogy (Palm Jumeirah, Palm Deira and Palm Jebel Ali) with major landmarks still underway; host to international social and sporting events. Dubai had 7.5 million visitors in 2007, gaining an income of around USD 3 billion.  
  
  
• Real estate & property industry up - thegrowth rate of 11 per cent for the next eight years value of registered real estate transactions in the first quarter of 2008 was AED 3.7 billion; the value of land sold since 2008 went up to more than AED 44 billion, with a growth rate of 144 per cent. Most properties in Dubai are offered as freehold.
  
  
• Sound political climate- Dubai's government is based on the framework of a constitutional monarchy, and has been ruled by the Al Maktoum family since 1833; the leadership has played a vital role in the economic development of the emirate.
  
  
• World-class work environment - characterized with the amenities of modern lifestyle featured with themed leisure areas, elegant malls, luxurious hotels and residences; international schools and universities, specialist clinics and hospitals, etc. As the emirate population growth surges, the government will be spending about AED52.5 billion for new roads, bridges and a metro network over the next five years.
  
  
• Dubai mortgage rates are around 8.5 per cent and have yet to adjust to the recent US rate cuts, which they have to do because of the dollar peg to the dirham. Just a couple of years ago local mortgage rates of seven per cent were available. Therefore the downward pressure on the cost of home finance is clear, and if the local mortgage market follows Hong Kong and becomes more competitive, then interest rates could go much lower, making it significantly cheaper to buy than rent. Real interest rates are already negative due to high local inflation.
  
  
• Rental yields in the Dubai market of 7-10 per cent are abnormally high by international standards. Rents are unlikely to fall in a booming market, so it is more likely that rising capital values will gradually pressure yields down towards global levels. There is no reason why rental yields should be higher in a booming city like Dubai than in a city where the economic outlook is poorer. 
  
  
• Dubai house prices are still low in absolute terms in comparison to other global cities with similar salary levels. The HSBC survey of house prices in comparison to per capita GDP put Dubai and Abu Dhabi near the bottom. This is a historic anomaly that will be eliminated by price rises.
  
  
• Free Hold- Six years ago, when Dubai freehold began, it was a market without any formal legislation and regulatory infrastructure. Now it has world-class laws, a state-of-the-art land registry and a strongly-led regulatory authority. Hope has been replaced by experience.
  
  
• Absence of investment alternatives -Indeed, the absence of investment alternatives is a major theme for 2008. Global stock markets have had their worst January in history. Recent US interest rate cuts leave deposits paying 2.8 per cent. This makes Dubai real estate look attractive as an alternative. Where else offers such a return? 
  
  
• Undeveloped  markets- Dubai still has some undeveloped market niches in real estate, such as holiday lets and fractional ownership, which are big and even dominant market phenomena in many beach resorts around the world. This source of higher rental yield on property has therefore yet to be fully tapped.
  
  
• The Dubai Government has been the most proactive developer in the emirate, and its recent legislation and regulatory initiatives suggest that this support is not only likely to continue, but will respond appropriately to any adverse market developments.