What Draws Foreign Investors to Dubai
There is no doubt that the Dubai economy is booming. Dubai is one of the most business-
friendly cities in the world, experiencing tremendous growth in the last two decades. That said,
many wonder what it is about Dubai that draws many foreign investors to bring their business
into the city.
One of the primary drivers of Dubai’s economy is its strong and expanding tourism industry.
Tourism is a powerful incentive to foreign investors who are looking at profitable real estate
ventures, and these investors come from all over the world, including the United States, Great
Britain, Egypt, and China. Investors in some of the most successful markets in the world are
showing increasing interest in Dubai’s economy, especially its property market. Dubai allows
investors to sell properties for profit or rent them out to permanent and seasonal tenants, leaving
a lot of room for diversified portfolios.
Dubai is constantly improving its infrastructure and financial security. The Emirates is currently
among the top 10 fastest-growing property markets in the world, making it a favorite destination
of both foreign and domestic investors. The Dubai Land Department’s (DLD) regulations
increasingly protect investors and consumers.
Projections show that the economy will grow from 3.8 percent to 4.5 percent in just a few years.
It is no wonder that Dubai is the most popular city in the world for high-net-worth individuals
seeking to buy their second home. Low-interest rates also help boost property profitability in
Dubai.
The DLD calculates that foreign investors make up about 20 percent of total real estate
purchases. All told, foreign investors put more than AED 151 billion into Dubai real estate in
2017. International buyers are also returning to the Palm Jumeirah, attracted by its competitive
pricing and Nakheel’s major capital developments there. Palm Jumeirah is quickly becoming
more popular with foreign buyers as its economy grows and developments progress. Once a
development is finished, prices are anticipated to increase. Presently, most Palm Jumeirah buyers
are second-home owners, buy-to-let owners, and end-users, although this is likely to change as
the area develops.
These are just a few reasons why Dubai continues to draw in investors from all over the world,
making the city one of the top choices for investment of all kinds. As the market continues to
expand, foreign buyers are even more likely to come to Dubai as they seek a solid, safe economy
yielding investor rewards.