The international citizen website, Sheikh Mohammed, the ruler of Dubai has many plans for the region. The emirate had pulled many financial investments to develop its international financial services industry. The ruler had plans to extend the development to revamp laws and create a very friendly business environment. Since foreign investors are not allowed to own a property, income from land and property which was built up by Dubai’s former ruler Sheikh Rashid Bin Said Al-Maktoum, are keeping the land’s income more secured because investors are paying them good amount of money for the lease of the place.
Also, the sale of oil and gas provide much of the fuel for this government-led expansion offering an estimated $5bn in yearly income. However, it should be remembered that Sheikh Mohammed Bin Rashid, who is the Prince of the Al-Maktoum family or the ruling authority of Dubai, is keen on making changes to the region to make it a international confluence of business aspects and for that he is directed towards the issues to make Dubai a commercial city of international standards as he is able to understand the potential of the region.
Sheikh Mohammed Bin Rashid’s main interest in the matter is chiefly economical because the production of oil is slowly reseeding for the past couple of decades and thus it is important to diversify the business of the region. However, it is important for Dubai to develop an individual legislation as in present the city is mostly depended on Abu Dhabi in terms of legislation. Thus it would be interesting to note that Dubai has to make Abu Dhabi rapidly grant the new legislation (Lowtax Library).
Laws and policies concerning ownership and investment in real estate Freehold is a concept that generally means possession and the most superior form of private property ownership. It could be mentioned that the advantage of a freeholder over a private property ownership is that the former can be termed as the unconditional possessor or holder of the building or land or property in concerned. The right to occupy, use and enjoy his property is entitled to the freeholder for a long term or until he sold it to other people or transferred to a new owner.
Eventually, the freeholder’s heirs are entitled to inherit the title upon the death of the original holder of the title. (PropDubai). The real estate are allowed to be purchased by foreigners only in the so-called freehold areas and in other areas a leasehold right of use applies for a limited period (PropDubai). However it should be stated that international standards are maintained for practices related to commerce and trade in the region. Apart from that the UAE has enlisted itself as a GATT or General Agreement on Tariffs and Trade signatory.
This has been done keeping in mind the aspects of the highly potential economic market of Dubai. In the process 3 major federal laws were put into use. These laws were enacted keeping in view of the property rights in terms of intellectual and industrial rights. These 3 most important acts under federal laws are Law number 44, 40 and 37 and all of them are in alignment of the 1992 enactment of the Federal Laws (Lowtax Library). It should be noted in this context that real estates like Dubai Silicon Oasis and Dubai Investments Park are on sale and the chief targets are the foreigners.
However, these real estates are handed out in long term leases and this is a very encouraging factor for the foreign investors. Though it should be noted that in some projects involvements of foreigners in very long termed leasing system, like 99 years, are not allowed by the government. In this context of the foreigners are regarded and in a different way and there are some specifications in terms of these real estate properties. Under such parameters property rights are not allowed to the holder of unregistered lease but only property rights are given.
In this context inheritance is possible under unregistered lease. Furthermore any dispute would be looked after by Rents Committee, between the tenant and the landlord, if the said property is an unregistered one. (PropDubai ) Most of the investors in Dubai are confident in putting their money on business opportunities because they believe that costs of living, lands, and rents are much cheaper compared to other nations. Plus the quality of life is better.
It can be well stated that as a city Dubai is a real potential to attract investments in terms of both regional and foreign ventures. It should also be mentioned that from the mid eighties this city is presenting a formidable track record in terms of opportunities and has recorded a huge amount of enormous growth in terms of economy within the said period. It is often mentioned in this context by several esteemed business personalities that this city is a highly rewarding location where investing is highly fruitful.
It is also mentioned that this city has a low cost of living and at the same time holds a great background in relation to health care and education. From the aesthetic point of view Dubai is a very beautiful place for business with splendid natural sceneries and furthermore the traffic in this city is quite low. Furthermore, property in Dubai is cheap on an international level though foreign ownership is at still in the process, Dubai is creating an international property market and introducing the freehold and are given a good deal to encourage them to lead the way.
One of the most lucrative advantages of Dubai is its structure of taxation in terms of business and commerce. Professionals and workers, both skilled and unskilled, are lured to this city due to its tax free status on income. As a result these people can enjoy a better living standard as the salaries are valued at a higher utility and at the same time they can spare the additional advantage for better households. The point of view of investors are no a similar ground in this respect of lenient tax structure.
The property returns are found to be on a stable ground with a per year acceleration of 10% to about 15% for the last few years and is expected to be the same at least up to the next couple of years. It is also calculated that within the next 2 years the total amount of cumulative financial investments would be on a high note and it is assumed that the margin of growth would be around 100% of the existing growth. (Marr)