No doubt that the best way of saving and increasing your capital is by investing it abroad. Foreigners from all corners of the world choose Dubai as the most beneficial and stable place.
They are especially interested in such popular neighborhoods as Business Bay, Downtown Dubai, Dubai Marina, and others. Multi-bedroom and studio apartments in Business Bay are among the top options to invest in and get a high investment return.
In this article, we will find what the most profitable ways of investing in Business Bay and Dubai as a whole are.
- 1 1 option. Investing in real estate in Business Bay in Dubai
- 2 2 option. Open a savings account in Dubai
- 3 Option 3. Open a business in Dubai
- 4 The advantages of doing business in Dubai
- 5 Real estate agency
1 option. Investing in real estate in Business Bay in Dubai
People with high incomes consider the purchase of real estate in Dubai a profitable investment. As a rule, they do not intend to stay for permanent residence but focus on renting it out.
Why is it profitable to buy real estate in Dubai?
There is a myth that real estate in Business Bay in Dubai is extremely expensive. Of course, such housing options really exist and they are in high demand. However, affordable apartments are also available.
The price of apartments in cozy green areas starts at $ 150,000. At the same time, the complexes have everything you need for life: parking spaces, swimming pools, gyms, restaurants, and areas for children.
If you take out an installment payment on an apartment in a new building, you can be sure that you will not overpay for a single dirham. The payment plan can even look like this: 5% at the time of booking, 35% during construction, 40% at handover, and 20% within two years of handover. There are many variations.
- By buying a property for $205,000, you get the right to obtain an investor visa – an analog of a residence permit. It gives the owner a lot of advantages:
- visa-free entry to neighboring countries;
- opening savings accounts in local banks;
- obtaining a driver’s license valid in 50 countries;
- accelerated procedure for obtaining a Schengen visa and a U.S. visa.
- Absence of taxes connected with real estate purchase. Still, there are some payments but they are discussed beforehand and obligatory for every buyer.
- The popularity of Dubai among travelers will steadily grow. The work in this direction is conducted by state structures – for example, the Department of Tourism and Commercial Marketing.
- The average yield from real estate in Dubai is 7-15% per annum. The payback period for property in Dubai is 10-15 years. All figures are published by the financial group “BCS World Investment”. The most profitable objects for investment are in the areas of Business Bay, Dubai Marina, Downtown Dubai, and Palm Jumeirah.
2 option. Open a savings account in Dubai
If you have obtained a residence permit already, you have the right to open accounts at local banks. Non-residents have a different situation – the service is not available to everyone and at an inflated price. By the way, owning property in Dubai greatly simplifies communication with any local bank. Even if you have a resident visa expired or absent altogether, you can still open an account on an expedited procedure. The national average rate is 1% per annum and depends on the amount of the deposit.
How to open a savings account in Dubai
First of all, it is worth getting a residency visa – the analog of a residence permit. With it, you can choose absolutely any bank in the city and get access to all services – online banking, debit and credit cards, and checkbook.
Option 3. Open a business in Dubai
Many world-renowned companies have already relocated their business to Dubai. Among them are Microsoft, Nokia, Sony, Boeing, Shell, Procter & Gamble, Adidas, and BBC World.
How to open a business in Dubai
Under UAE law, foreign investors can open a business in the main territory of Dubai or in a free economic zone – FEZ. Any companies are registered and licensed, fully owned by the foreigner, and can have an account in UAE banks. The difference is that a mainland company can operate anywhere without restrictions. Whereas a FEZ company has the right to operate either within the free zone or outside the country.
The advantages of doing business in Dubai
- Complete absence of taxes. The exception is 5% VAT if you provide services within the UAE. You do not pay any interest in activities you do outside the country.
- Advantageous location. Dubai is at the crossroads of the Middle East, Europe, and Africa. The borders are open to all countries of the world. The city hosts numerous exhibitions and events that bring together businessmen from all over the world.
- Stable currency. The dirham is pegged to the U.S. dollar and has not changed course for more than 30 years.
- 89% of the population of Dubai are immigrants, so it is easy to adapt and find your target audience.
- The government is interested in attracting foreign entrepreneurs, so you can get all the documents done in just a couple of weeks.
In recent years, Dubai has been developing at a crazy rate. In 2020, it ranked 27th among the best cities in the world according to the Global Cities Index. This year, the emirate has reached 22nd place, overtaking Madrid, Rome, Buenos Aires, and Tokyo. This suggests that now is the best time to start investing in Dubai.
Real estate agency
Business Bay is one of the most developed and sought-after areas of Dubai. The very name of the community speaks volumes about its main purpose: business life is booming here. But investing in Dubai real estate for permanent residence or for rent is just as popular. The community successfully neighbors both commercial and residential properties. To find the best housing option it is advisable to address the real estate agency https://www.axcapital.ae/. In the catalog, you can find current real estate listings of different formats: from studios to apartments.