13 07 2020

Investments in the UAE in 2020

Investments in the UAE in 2020

The United Arab Emirates is a country with a stable and developing economy. The presence of high demand for completely different types of activities, as well as the availability of good solvency of the population, ensure the flow of foreign investment at the largest level in the region. State loyalty and support, investment protection, a stable political system and the absence of corruption reduce risks and ensure high return on invested capital.

 Among the main types of investments in the UAE:

    1. Investment in real estate (commercial and residential);

Different Emirates have their own restrictions on the ownership of real estate or land. However, for many companies in the UAE, this opportunity arises, and they are allowed to own apartments and other premises in the allotted territories. The acquisition of commercial real estate is very common and profitable because every year the demand for office space increases due to the growth of expats and the expansion of the local market. Offices are in demand not only by companies, but also by freelancers.

Investing in residential real estate is also profitable. Demand for residential real estate in good areas with developed infrastructure is growing along with an increase of living standards and solvency of the population.

    2. Investments in UAE companies operating in the UAE;

In many economic sectors in the UAE, there is a 49% cap on capital ownership. 51% of the company's share should belong to a local sponsor.

Many investors prefer to invest in business and companies in more than 40 different Free Economic Zones. Free economic zones have been specially created to increase the inflow of foreign capital. There are differences in the licenses issued, and many economic zones develop certain sectors of the economy - medicine, energy or technology. Some Zones specialize in a certain type of activity and provide their investors with no taxes and customs duties, as well as 100% ownership of a foreign company.

Land and real estate are leased for a specified period with the right of ownership of land up to 99 years. Some Free Zones provide the opportunity to purchase real estate.

    3. Investments in UAE companies operating outside the Free Economic Zones of the UAE;

The main advantage of companies that have opened in the UAE outside the FEZ is the ability to conduct business throughout the United Arab Emirates. Also, the main difference from companies in the Free Economic Zones is the presence of a local sponsor and limited ownership of the company. However, it is worth noting that investments in companies outside the SEZ are often more profitable, because there are more opportunities for doing business with large local companies, providing services to state-owned companies and authorities, receiving state support and establishing productive ties with local businessmen.

    4. Investments in innovation and technical development;

Innovative development is the basis of economic development in the modern world.

The United Arab Emirates has rightfully earned its place in the world ranking. As the center of innovation and technology in the Persian region, the UAE annually receives the brightest minds from around the world. Many businessmen fly to the UAE to develop their startups. Investors and venture funds actively invest in innovative projects, as the state actively supports the development of technology and provides an opportunity for ingenious developers, scientists and specialists!

With the right investment in business or real estate in the United Arab Emirates, you will undoubtedly receive a return on your investment in a hurry!