Czech and foreign investors are discovering the magic of investing in the Emirates, and the location is building a stronger name for itself. In this article, we explain why that is. We have selected for you the 3 biggest advantages of the location that European countries do not offer.
Stability even during an invasion
While most developed countries are currently in chaos regarding the impact of the war conflict between the Russian Federation and Ukraine, the situation in the Emirates is calm. Despite the fact that the country is rich in oil, it has not suffered any negative impact due to its declining price.
Why is that?
Thanks to the government's long-standing efforts to diversify the economy, income from the oil industry currently accounts for only 30% of the country's GDP. The United Arab Emirates also offer a very favorable legislative environment for investors and entrepreneurs.
The Emirates target investors
When it comes to investments, the Emirates have one of the best legal systems in the world. It is favorable to investors and entrepreneurs and fully protects them.
Unlike many European countries, there are minimal business barriers and government interventions that would slow down the development of the economy or entrepreneurial plans. Dubai also hosts more than 20 duty-free zones. They allow foreigners to take their business profits without the need for taxation.
Easy visa? Yes!
The government correctly predicted a high number of foreign investors who would want to spend part of the year in the country. For this reason, it has simplified immigration policy as much as possible. If you are the owner of even a portion of real estate in the UAE, you and your immediate family are entitled to a residential visa.
Tourism in the Emirates is on the rise
The biggest opportunity in the United Arab Emirates is undoubtedly the rapid growth of the tourism industry. By 2022, the country was able to increase the share of this industry in GDP from its original 3.5% to 16.5%. It supports the construction of tourism infrastructure through state budget investments and simplifies legislative processes for developers.
For investors and entrepreneurs, this means an opportunity to participate in the construction and development of a new network of hotels, residential housing, offices, and other properties in the location.
The United Arab Emirates are among the busiest tourist areas in the world. This is associated with high occupancy rates of hotels and offices and, therefore, a high rental price. Real estate in Dubai can offer you up to a 10% annual rental return. Here is a comparison with real estate in London, which provides only slightly over 3% rental return. Such a situation really encourages investment.
How is inflation doing?
Fears that economic growth would cost investors a lot of money due to high inflation are not being realized. Inflation in the country is fully under control. In 2022, it reached only 4.4%, and a decrease to 3.5% is expected for 2023.
Therefore, the United Arab Emirates represent an investment oasis of stability in today's uncertain world. They provide investors with opportunities that no other country offers. Simply, quickly, and without unnecessary obstacles, with good prospects for the future.
Are you interested in investing in the UAE but need more information?