With a history of once lagging behind the rapid development of other world trade centers, the cosmopolitan city of Dubai in the United Arab Emirates (UAE) currently enjoys an unprecedented development explosion fueled by anticipation of Expo 2020 and the government’s newly enacted changes in policies designed to attract visionary thinking entrepreneurs from a diverse array of business backgrounds, countries and cultures.
In the past, petroleum propelled the economy of the emirate; today its real estate. In 2006 the government of the emirate made it legal for foreigners to own property and a flood of investors flocked to the opportunity. Volatility in the market place and excessive speculation contributed to the real estate prices plummeting in 2008. Under-funded investors involved in the practice of “flipping” properties immediately upon purchase lead to the collapse. Dubai has added stability to the marketplace by enacting new rules that prevent the sale of a property until 40 percent of the mortgage has been paid.
Although real estate values fell as much as 90 percent in some locations, Dubai survived the global financial crisis with a loan from its rich neighbor and the real estate market has rebounded with renewed vigor. Tourism is booming creating a demand for more hotel and convention accommodations. Corporations responding to the tax-free haven require industrial storage, shipping facilities and office space. Not only is the real estate sector recovering from the 2008 meltdown, Dubai as host of World Expo 2020 expects 25 million visitors to the event that is predicted to contribute as must as $40 billion to the economy and create 277,000 new jobs.
Over the past 10 years Dubai has experienced incredible growth throughout all sectors of its economy as the government works to introduce dramatic changes in regulations that aid in the formation of both small and large businesses. Today the vigorous Dubai economy enjoys a competitive edge boasting a combination of environmental, market and cost advantages that create an ideal investment climate for both local and expatriate businesses.
Dubai’s development is still in its early days; the “City Of The Future” is youthful and vigorous offering an enviable per capita income, steady economic growth, financial stability and a diverse social environment. Dubai doesn’t care where or how you made your money, they just want you to invest it in the emirate. They are not concerned with the source of investment capital as long as it keeps flowing in to the country’s coffers. To encourage the flow of funds, Dubai converted its self into a tax-free zone where investors pay no levies or taxes of any kind. That’s right! Pay absolutely no taxes. With the emirate not asking questions as to the source of funds, billions and billions of dollars are being pumped into the Dubai economy.
Dubai is the Arabian Gulf’s main multi-purpose business center, at the forefront of the world’s dynamic and emerging real estate markets. Internationally known as the richest city in the world, Dubai presents a broad spectrum of the finest in prestige properties. The real estate market in the emirate is growing at an explosive and unprecedented rate. From luxury villas to penthouse condos, stellar office buildings and 5 star hotel/shopping complexes, real estate investors are responding to market incentives that promote investment and development.
The World Property Channel reports, “Dubai's prime residential property is forecast to record the world's highest growth in prices in 2014, according to Knight Frank's global forecast. In 2013, Dubai posted the largest increase in luxury property prices, growing by 20 percent. In the third quarter, consulting firm Cluttons reported a 53 percent yearly increase in Dubai's residential prices, as confidence grows in the real estate sector.”
To encourage foreign investment the UAE lifted restrictive trade barriers and foreign exchange controls related to foreign investment. Real estate market research forecasts the present growth and development trend will continue unabated for decades; returning a solid return on investment.
A major investor and developer in 7 of Dubai’s most ambitious real estate projects, India born billionaire businessman Tej Kohli is bullish on Dubai’s future. Mr. Kohli noted, “I started the Ozone Group in 2008 as a company that would help investors make maximum profits from the investment opportunities in Dubai and Abu Dhabi. After five years of rigorous business Ozone Real Estate is capable of offering all real-estate related services, the most popular being investment, sales and marketing management and property development. The company continues to expand with interests in commercial and residential property across the UAE, but refuses to compromise on the need for quality developments that will make life convenient and comfortable for the community. We are currently looking to expand our presence in Dubai, and we have our eyes on other equally prestigious markets around the world.”
Continuing a practice established with his many other international business interests, Mr Kohli is always seeking new business opportunities in regions of dramatic potential; Dubai offers such an opportunity.