The UAE- an Investors Paradise

There are not a lot of countries in the world that offer so many investment possibilities as the United Arab Emirates (UAE). The UAE is renowned internationally for its exceptional performance in diverse areas. Excellent performance is a phrase commonly by advertisement companies to boost sales of goods and services. When the phrase excellent performance is used to describe the UAE’s development, it actually devalues the quality of professionalism that exists in the country when considering it has thrived from a desert-destination into an international leading country.

The UAE is amongst the top countries in relation to international economic competitiveness, education, health, infrastructure, security, human capital, economic growth as well as women empowerment and government efficiency. It is not a coincidence that one-quarter of the world’s leading companies have opted to set up a regional base in the UAE.

The 2015 World Happiness Report, conducted by United Nations has revealed that the UAE ranks in the 20^th position internationally, higher than other GCC countries, Singapore, the UK as well as Japan. The UAE has always believed that people, who originate from different ethnicities, nationalities, religions and backgrounds, can in fact live together in peace and harmony as friends, colleagues and neighbors.

At present, expatriates originating from more than 200 countries have made the UAE their home. These expats do not only offer their expert knowledge and skills to the UAE economy, but also boost it culturally and socially. In 2014, the U.N. International Organization for Peace, Care and Relief positioned the UAE 1^st globally for being a country where diverse nationalities coexist peacefully.

Additionally, the World Justice Project ranked the UAE 1st in the region concerning security and public order and 27th internationally. This indicates that the UAE is considered a safe country with very low criminality rates in comparison to other countries.

Even though prices of oil dropped significantly, 2014 was the UAE’s strongest economic year since it was established. The real GDP and nominal GDP reached 4.6% and AED 1.47 trillion respectively in 2014.

Economic Diversification

It is a fact that the UAE has successfully diversified its economy to the point that it benefits for having the most diversified economy throughout the Middle East region. The IMD World Competitiveness Centre Index ranked the UAE 26th in the world, ahead from other competitive countries such as Hong Kong, New Zealand, Russia as well as Norway and Australia. The International Monetary Fund (IMF) confirms the above evaluation, by stating that the UAE’s discipline in terms of budget as well as its diverse economy have allowed the country surpass and withstand lower oil generated profits.

The UAE is a destination that encourages innovative ideas and private enterprise no matter how radical they are.

In most sectors, the UAE is ranked above its competitors. The tourism sector marked an increase of 20% during the second financial quarter of 2015, thus hotel occupancy was also boosted. Those who visit the UAE for the first time are always in awe with the surplus of entertainment, dining, leisure as shopping options available, and revisit the country repeatedly.  During the first three months of 2015, tourist spending increased by 5%.

During the first few months of 2015, the passenger traffic rate of Dubai International Airport increased by 6.5%.  It is estimated that by 2020, Al Maktoum International Airport and Dubai International Airport will cater to approximately one-hundred thousand passengers due to the Expo2020. Similarly, Abu Dhabi International Airport caters to 15% more passengers every year.

Victory

Due to their success, the Emirates, Etihad Airways and Qatar Airways are being accused by other less competitive airlines of accepting state subsidies. The UAE national airlines are denying these accusations vigorously.

The UAE’s property market attracts investors because of its zero percent Capital Gains Tax. Furthermore, all property in the UAE is registered. Christie’s Luxury Defined 2015 report revealed that luxury properties are in high demand. The report showed that foreigners in Dubai made three-quarters of all luxury property sales.  Dubai attracts foreign property investors because it is considered as a safe haven.

The UAE’s financial sector grew by 15% in 2014. According to recent news, the financial and banking services sectors are hiring more employees. The UAE Central Bank announced that there is a surplus of liquidity in banks and it is anticipated that credit growth will remain strong and healthy. In 2014, the banking sector’s collective assets amounted to US $631.47 billion.

Based on CBRE’s revelations, Dubai was ranked second, after London, as the most important shopping destination on an international level. Other leading retail destinations, such as Singapore and New York, were ranked after Dubai. It is estimated that Dubai’s retail sector has grown by approximately 33% over the last few years.

Additionally, the procedure needed to set up a business within the UAE is simple and fast, where registration of a company takes less than 8 days. Companies, which choose to set up in one of the 27 Free Zones in the UAE, enjoy tax exemptions as well as complete foreign ownership.

Dubai is home to twenty business-orientated free zones. Some of Dubai’s free zones also offer easy access to ports. Dubai’s most recent free zone is Dubai Design District, which obviously lures international brands and designers. It is anticipated that Dubai’s new Matajircom free zone, which will be the world’s first e-commerce centre, will open very soon. Dubai is an expert in combining similar business-orientated companies in the same area like Dubai Heritage Village, Healthcare City, Dubai Internet City, Media City, Knowledge Village and Smart Village.

UAE is a country that promotes innovative ideas and entrepreneurship, no matter how radical they are. Several examples of the UAE’s innovative drive include Abu Dhabi’s Louvre, a revolutionary domed building that weighs about 7000 tons and hosts museums and art galleries. Another example is Marina 101 tower in Dubai, a 33-floor building, home to residential apartments and the Hard Rock Hotel.

The UAE government’s priority has always been the less fortunate. In 2014, the UAE was nominated by the Organization for Economic Cooperation and Development (OECD) as the World’s Charity Capital because the country donated 1.5% of its GDP to charity and other humanitarian causes.

The UAE continues to flourish and grow because it never seizes to strive for higher targets and improve. The Franklin Templeton Global Investor Sentiment Survey published a new poll, whereby 11500 investors from more than 20 countries took part. The poll ranked the UAE the 2^nd country internationally where investors are sure they will meet their business goals during 2015.