The aim of investors is to have a high rate of return from their investments. In this sense, investors must identify if Dubai is a place where foreign investors would expect a good economy, a stable currency, a stable government, a high potential of growth and high rate of return. This paper aims to discuss the different foreign investment opportunities in Dubai. Several topics would be discussed in the paper relating to the foreign investments in Dubai, its real estate position and transactions related to bank.
The author would be discussing a background on the geography, political environment, economy and the business environment in Dubai. The reasons why Dubai is a good place to invest in would also be discussed in detail. Particular businesses such as the real estate would be analyzed in this paper. Economic Concepts such as the rate of return, opportunity costs and risks would be also discussed in this part. Laws regarding foreign investments in the emirate are also included in this paper.
However, the foreign investments in discussion would focus on the real estate of Dubai. It can well be stated that a strategic location to create linkages with other countries, modern Dubai is a rich place to invest since it’s an oil-producing country and dominated its economy through petroleum industry. The location of Dubai is to be found in a position that can be regarded as an important strategic point in terms of economy.
Dubai can be enumerated as a vital linkage between the states of Europe and the countries of the Far East. At the same time Dubai is situated in the interim position between the Middle East and the continent of Africa. These two advantages in terms of location make Dubai a real spot for the investments and marketable consumptions thus exhales a potential to circulate billions of dollars. It is served by many shipping lines counting to 170 and 86 airlines that could be easily accessed by over 100 cities worldwide (Lowtax Library).
Most of the labour force is comprised of Asians coming into the island since there are many businesses and working opportunities. With regards to Dubai’s business environment, companies that are entering the industry will not be deducted by any corporate or personal taxes but exceptions to this are for oil producing companies and branches of foreign banks. However, foreign companies are not permitted to own or acquire their own land, they only have to rent or lease for business purposes.
In this paper, we will discuss the understanding of Dubai’s investment and identify other market imperfection, liquidity, different forms of risks, and corporate lending and project finance that has an impact and influence in the local market of Dubai. Moreover, we shall address the discussion through a question to easily identify the business activities in Dubai. GEOGRAPHY OF DUBAI The emirate of Dubai has been a topic in discussion in an internet website, Lowtax. net.
According to the website, the emirate is a major part of the Dubai emirates which is composed of rolling sand dunes below Hajar Mountains in the east. It was stated that the land area of Dubai is equivalent to 5 per cent of the emirate’s total area which is equal to 3,885 square kilometres. The emirate is known for the number of tourists visiting and also for the future businesses that the government of Dubai is planning in the future. Jebel Ali, Hatta Fort Hotel, Dubai International Airport and Dubai Harbour are among the establishments and structures that the government is proud of.
To further illustrate, Jebel Ali is estimated to be a home of a huge man-made port. The place is considered as the largest free-trade zone in Arabia. Hatta Fort Hotel is known for its extensive parkland which is good for tourists who want to explore nearby ‘wadis’ and mountains. The emirate is also proud of The Dubai International Airport which is known as the second largest airport in terms of the number of daily transit passengers. The harbour in Dubai is second only to Seattle and ranked 15 in terms of container throughput.
The government is planning to build the world’s largest mall in Dubai and is also looking forward for the opening of Jebel Ali International Airport. According to history, Dubai is described as a small port clustered in the mouth of the creek. It is said that the Bani Yas Tribe had inhabited the emirate in the 18th century. The fishing village had been transformed into a prosperous port and had attracted several settlers from other countries such as Iran, India, Baluchistan in the turn of the 20th century. Based on the website, Lowtax.
net, Deira side was thought to be as the largest on the coast. The website, lowtax,net had identified that facilities for trade and free enterprise had made Dubai a natural haven for merchants. Cosmopolitan atmosphere had been adapted in the emirate and thus, this had become the key to attract other foreigners. Population ratio in the 1930s show that nearly a quarter of the 20,000 population is foreign, including 2000 Persians and 1,000 Baluchis, Indians, communities from Bahrain, Kuwait are some of the other foreigners included in the ratio.
In the 1960s, it is estimated that the population had increased tenfold with a value of more than one million. Based on the report from the website Dubailife, the population of the emirate in the year 2006 is 1,321,453. From the total population 75% is male and 25% females. The author of the article in the Dubailife website explained that the reason for the difference in the gender population is that it reflects the increased pace of construction and economic activities, where a big number of unskilled labourers are brought inside the emirate.