Sophia Turner
Investments in dubai for foreigners
Currently, Dubai has become one of the most prosperous cities in the Arabian Peninsula for investors. Not only residents of this city but also many foreigners have turned to investing in Dubai. In recent years, thanks to the rulers and leaders of Saudi Arabia, business transaction conditions in Dubai have become much easier for foreigners. This has been a win-win deal, benefiting both the internal economy and foreign investors.
One of the reasons foreigners are drawn to investments in Dubai is the 0% corporate income tax rate. Moreover, unlike other countries where you may not have the ability to own 100% of your business, Dubai offers a completely different scenario. In addition to these advantages, Dubai’s long-term visa is another feature that has made investments in Dubai even more appealing to foreigners. Fortunately, after your career ends, you can retire in this city, with support from the government.
Starting a Business in Dubai by Foreigners
A common question that arises for most people is whether foreigners can start their own business in Dubai. Our answer to this question is “Yes.” However, it’s important to note that there are certain restrictions based on the type of business and your nationality. Sometimes, you may even need a third party to collaborate with you in establishing the company, in which case 51% of the company’s ownership will be allocated to them.
How to invest
The foreign investment law in Dubai was enacted in 2018 as UAE Federal Law No. 19. This law was revised in 2020 to specify all the industries and businesses in which foreigners are allowed to invest.
The first aspect of investments in Dubai pertains to the conditions for investing in residential properties. Investments of this type must be located in designated zones and comply with leasehold or freehold ownership terms. Leasehold refers to properties available under long-term lease agreements, while freehold allows full ownership.
These rules and regulations are not overly complex; you simply need to adhere to the conditions for leasehold or freehold ownership and then proceed with the purchase. Most properties covered under these regulations are located near the city center. Given the significant construction developments in recent decades, the availability of such properties has increased, making investments in Dubai easier.
All Conditions for Investments in Dubai for Foreigners
Now that you know the process of investing in Dubai, let’s take a look at the conditions. Before proceeding, you must ensure you meet the eligibility criteria; otherwise, you will not qualify for Dubai’s 5-year visa.
Individuals can apply for this visa if they own a property valued at a minimum of AED 5 million. For entrepreneurs, having a project of equivalent value is sufficient. Additionally, applicants must demonstrate their ability to invest and prove they possess the necessary financial resources.
Types of investment for foreigners
If you are planning investments in Dubai and are considered a foreigner, this section will introduce you to the best methods.
1- Real Estate
Considering the stunning buildings, extraordinary projects, and magnificent skyscrapers, it is evident that Dubai is excelling in the real estate sector. As a result, one of the best investment opportunities for you will be in real estate. However, do not rush; before taking action, ensure you are aware of the area’s growth potential and the current state of construction. A key indicator to consider for investments in Dubai is the proximity to tourist and sightseeing areas. These locations often perform exceptionally well in terms of development and growth.
2- Stock Market
Another investment option in Dubai is the stock market. In fact, this is the second option most people think about. One of the ways to invest in the stock market is through equity funds. Other types of funds include:
- Value and Growth Funds
- Fixed Income Funds
- Equity Funds
- Shariah-Compliant Funds
- Non-Shariah-Compliant Funds
- Active Funds
- Sector Funds
Depending on your financial goals, you can choose one or more of these funds.
3- Gold
One of the reasons why investing in gold is considered one of the best investment opportunities in Dubai is the city’s reputation as the “Golden Land.” This precious metal is highly sought after in all countries and is regarded as a safe asset. There are several ways to invest in gold in Dubai. One option is buying and selling it, essentially trading it in financial markets like Forex. Another approach is purchasing it with a long-term perspective. In both cases, having sufficient knowledge in this field is crucial to achieving profitable and successful investments.
4. Healthcare
In addition to advancements in various technologies and industries, healthcare deserves special mention. Dubai is recognized as one of the leading medical hubs in the Middle East. Based on forecasts and population growth, the healthcare sector in Dubai is expected to contribute significantly to increasing life expectancy in the city. Experts estimate this figure to reach 79.4 years.
