Why Invest in Dubai?

Dubai has visitors from across the globe coming here for business, exhibitions, conferences, shopping and entertainment or on their annual family holiday. Known for its diversity and being the melting pot of cultures in the Middle East, the Emirate has amongst the best tourism infrastructure in the world, and is seeing tourism numbers growing at over year on year at over 10%.

  • Dubai has the most diversified economy in the GCC with very little dependence on oil and a surge in tourism, trade, real estate and financial services.
  • Economic growth of 3% in 2011, 4.5% GDP growth in 2012 and 5% growth in 2013 shows recovery from the slump in 2009.
  • Tourism, trade, transportation and logistics account for 60% of Dubai’s economy in 2012.
  • Post – Arab Spring Dubai and UAE seen as a safe and stable investment and tourist destination.
  • Dubai Financial Market (DFM) General Index surging by 22.77 % in the Q1 2013
  • UAE corporate earnings grow by 100 %in 2012 over 2011
  • Dubai has emerged as a trading center for gold and precious metals, diamonds, precious stones, energy (fuel trading and natural gas) and other industrial goods.
  • Direct exports of Dubai in 2012 have reached 70 billion Dhs (an increase of 24% – in 2011).
  • The World Travel and Tourism Council (WTTC) estimates 7.2 % growth annually till 2015 and have forecasted the number of tourist arrivals to increase to 14 million.

Source: Press and Market Reports, HBB Research

  • Dubai International Airport, Terminal 3 exclusively for Emirates Airline on an area of over 1500 square km. Capacity is set to grow to 42 mn annually.
  • Dubai’s credentials as the place to do business has been given a firm push with a new ranking naming it the third “most dynamic” city in the world, just after San Francisco and London and ahead of Chinese metropolises, Shanghai and Wuhan. In all, the pros and cons of 111 business hubs were filtered through in a new study — the City Momentum Index — put out by the real estate consultancy Jones Lang LaSalle.
  • Dubai also figures in the list of “elite cities” in the Index, based on the fact that they — San Francisco, London, New York, Hong Kong, Singapore, Los Angeles and Tokyo apart from Dubai — accounted for a quarter of direct commercial real estate investments in the period 2012-13.
  • Dubai ranks highest in the Middle East in terms of quality of life, followed by Abu Dhabi, according to a 2012 Mercer Survey. Out of the 221 cities rated worldwide, Dubai ranks 73 for Quality of Living and 34 for City Infrastructure. Abu Dhabi is rated 78 and 72 respectively. Dubai beats Geneva (47), Miami (48), San Francisco (55), Barcelona (57), Rome (72) and Kuala Lampur (77).
  • Dubai is becoming a services hub and in particular a financial services hub, there is going to be an increase in the number of foreign professionals who are flocking there to work and with a high pay and tax free status.
  • Dubai offers higher than average rental yields to the long-term investor. Whereas overseas, property owners average around a 4% yield on their investments, in Dubai one can expect 7% returns.
  • Dubai is the second most attractive real estate investment market in the world for high net-worth individuals (HNWI). Wealthy investors only choose London ahead of Dubai, according to Cluttons in its International Private Capital Survey 2013/14.
  • Average residential prices in Dubai have risen by about 30 percent in the past year, aided in part by cheaper debt financing and those looking to avoid escalating rents.