Real estate sector hinges bets on tourism for windfall gains
The United Arab Emirates (UAE) is a unique world. Sunshine year-round, pristine sun-baked beaches, desert safaris and a host of breathtaking structures such as Burj Khalifa and Palm Jumeirah are some of the gorgeous assets UAE tempts tourists with as they search for a memorable sojourn.
And lured they are. The tourism industry of the UAE is surging ahead in leaps and bounds and shouldering a fast-developing economy that once relied on oil as its main source of income. And the UAE is expected to continue this steady growth well through the 2020 Dubai Expo.
Here are 3 reasons to invest in the UAE:
1. More space for the money
Within lies a great opportunity for real estate investment in a cosmopolitan market where prime property prices are still comparatively low.
2. Growing tourism, thus growing economy
Considering the total contribution of travel and tourism to the GDP — investment, income generation and induced spending — the World Travel & Tourism Council (WTTC) report said the sector added 8.4 percent of GDP (Arab Emirates dirham 117.4 billion) in 2013 and was expected to rise by 4.5 percent in 2014, and to then rise by 3.2 percent each year to 8.5 percent of GDP (AED 167.4 billion) in 2024.
3. Government recognition of growth
Catering to that massive hike in numbers would be no small feat, but the UAE and Dubai seem ready for the additional action.
“The government has stepped up pressure on the developers with regards to completion of promised ventures,” experts said.
“No would not be taken as an answer, and those failing to deliver could end up with strict punishments, like cancellation of licenses.”
Real estate investors don’t have to be UAE citizens to invest in free zones across the country. Though you have to be a Gulf Cooperation Council national if you want to own property in places other than free zones, you can always set up a business by leasing office or retail space on contract from other Emiratis.
You need to apply for a business license to open a business in Dubai. The license gives you the authority to sponsor a limited workforce. However, if you partner with a UAE national, your business can sponsor as many people as you like, provided they get approval from the government.