Second city investments: dubai
Known for its tax free jobs and numerous developments, Dubai is a wonderful place to work and live. But is the image of it being a perfect place for producing property portfolios justified, or is it just a mirage in the sun?
Burj Al Arab - photo by impressions - èµ°çš„å°象
Fast Facts
Country: United Arab Emirates
Population: 2,261,995
Area: 1,287.4 km²
Currency: AED Dirham
Official Language: Arabic
Telephone Code: +971
Setting the Scene
Located in the Arabian Desert, on the Coast of the Persian Gulf, Dubai is a city and also one of the seven emirates of the United Arab Emirates.
Dubai shares borders with Abu Dhabi in the south, Sharjah in the northeast, and the Sultanate of Oman in the southeast.
It is the most populous and well known city in the country famous for its sports events and numerous real estate projects.
Dubai has a diverse and multicultural society, but despite the rich textures of various religions and nationalities (largely Indian and Pakistani - with a quarter of the population originating from Iran), Dubai remains a relatively peaceful city with very few examples of ethnic tension.
Major Industries
Aware of their ever decreasing oil supply, Dubai has taken steps to diversify their economy, which has been boosted by their trade, manufacturing and finance industries.
Dubai is now one of the most dynamic; emerging market economies on the planet and only 6% of its US$ 37 billion GDP (as of 2005) is from petroleum and gas.
Dubai is one of the largest re-exporting centres in the Middle East and with a free zone for every type of trade - the usual red-tape is waived and easy access to regional markets is encouraged - the area continues to develop as a hive of business activity.
In addition to this, businesses and investors are being lured by the strategic location, excellent infrastructure, low logistical and operational costs, international outlook and liberal economic policies.
Dubai Lifestyle
The climate in Dubai can be very hot, but generally the temperatures are pleasant for most of the year. This cosmopolitan city has a great atmosphere and is virtually a crime free zone, where the residents - many of which are expatriates - are warm, friendly and welcoming.
Getting around Dubai is fairly easy with numerous taxis to choose from, all relatively cheap whether you pay the meter fare or barter a price with the driver.
There is a great selection of restaurants offering cuisine from all around the globe, although many establishments outside of hotel and club premises are not permitted to serve alcohol. There is much to do when the sun sets in Dubai with many Bars, clubs and discos open till the early hours of the morning.
Traditional souks (market places) or modern shopping complexes will satisfy the hard-core shopaholic with the added incentive of it all being tax-free. There is also a myriad of activities to choose from including: world class golf courses, indoor skiing, water theme parks and of course the beach.
Leading Lights
A number of celebrities are lending their names and faces to various developments and projects in Dubai.
Some big named stars, such as Brad Pitt, are going a stage further by actually getting involved with certain constructions. Pitt is assisting in the design of an environmentally friendly five-star resort in conjunction with a Los Angeles architecture company.
Along with his wife Angelina Jolie, Pitt is also rumoured to have bought into a luxury island development, just off the coastline of Dubai, called ‘The World.' The famous couple will have some well known faces as neighbours, as other star names apparently buying into the project include Rod Stewart and David and Victoria Beckham.
Other celebs to endorse or buy into Dubai developments include sporting legends Tiger Woods, Boris Becker and Greg Norman, as well as fashion guru Giorgio Armani and billionaire businessman Richard Branson.
Capital Comparison
Abu Dhabi may not be the most populous city in the UAE, or as well known as Dubai, but it is still the capital. More impressively, it is one of the world's largest producers of oil.
The capital city is home to the ruler of the Emirate of Abu Dhabi who is also the president of the United Arab Emirates. Formerly, this city relied heavily on its oil supply to bolster the economy, but in recent years Abu Dhabi, similar to Dubai, has started to diversify and invest in areas such as tourism.
Dubai has led the way by developing its own infrastructure, recreational attractions and tourism trade, the area now offers something for everyone, resident, visitor, businessman or investor.
Property Insight
There is more than a $100 billion currently going into construction projects, such as the artificial Palm islands, which is the biggest land reclamation project in the world. This construction will feature not only residential and commercial developments, but also a whole host of activities including: resorts, spas, theme parks, shopping malls, marinas and miles of beautiful beaches.
Conclusion
Although located in the Middle-East, Dubai has the feel of a western city with tax benefits. A wonderful climate and a booming business background make this miracle in the desert, an investor's dream.
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