• Year round sunshine
• Tax-free environment
• Cosmopolitan community
• One of the world's highest standards of living
• Low inflation
• One of the safest cities in the world
• Low cost of living
• Stable currency
• Peaceful co-existence of ethnic groups

DUBAI MEANS BUSINESS

As a leading regional commercial hub with a state-of-the-art infrastructure and a world-class business environment, Dubai provides investors with a unique and comprehensive value-added platform that makes Dubai the logical place to do business.

THE MOST PRO BUSINESS ATTITUDE

• Robust economic clusters including technology and internet hub, media hub, finance hub and healthcare hub

• Dubai believes that “if its good for business, its good for Dubai

• Sophisticated fast track business initiatives (business set up in 20 minutes in free zones)

• 139 of the G500 MNCs in Dubai, 9 out of top 10 present in Dubai

• World class free zones

THE BEST REGULATORY ENVIRONMENT

• No Corporate Tax

• No Income Tax

• 100% Ownership in Free Zones

• No foreign exchange controls, trade barriers or quotas

• No restrictions on capital repatriation

• Strong investor incentives and protections

• Easy access to key decision makers

RELATIVELY LOW COST WORK ENVIRONMENT

• Access to low cost regional talent

• State of the art telecommunications

• Competitive energy costs

• Competitive real estate costs

• Competitive import duties (4% with many exemptions)

• Less expensive than Singapore, Hong Kong, Cairo and Bahrain

THE BEST CONNECTED LOCATION IN THE REGION

• Ultra modern airport handling 13.5 million visitors in 2001 connecting to over 140 destinations

• Emirates Airlines consistently ranks among top 5 airlines in world

• Over 630,000 tons of air cargo handled in 2001

• 125 shipping lines with 47 million tons of cargo visited Dubai’s world class ports in 2001

CONSISTENTLY STRONG ECONOMIC OUTLOOK

• GDP/Capita over $20,000 among highest in the year

• 10 year GDP Growth 8%

• Diversified economy - oil only contributes 10% to GDP

• Stable currency – pegged to US$ at AED3.67:US$

• Very low inflation (less than 2.5% from 1991 – 2000)

• Non-oil GDP growth of 9.6% per annum from 1990 – 2000

• Only 1.7% of active population unemployed

EASY ACCESS TO REGIONAL MARKETS

• Total region population of 1.8 billion ($1.5 trillion of combined GDP)

• Access to huge talent pool of 13.8 million skilled degreed candidates

• World-class land, sea, air cargo infrastructure

STRONG FOREIGN TRADE

• Third most important re-export center in the world (after Hong Kong and Singapore)

• Member of WTO

• Trade makes 16.4% of GDP compared to 14.5% for Singapore

• 9.2% growth in non-oil trade between 1989 and 1999

THRIVING TOURIST DESTINATION

• 11.6% of Dubai GDP invested in tourism

• Hotels rank amongst top in world

• Over 2.8 million tourists visited Dubai in 2000

• World class restaurants, beaches and tourist attractions

• Internationally renowned sports facilities including golf, tennis, water sports, horse riding, dune driving and sand skiing.

COSMOPOLITAN WORK ENVIRONMENT

• Over 185 nationalities

• More than 75% of UAE population expatriate

• Strong work ethic

• World-class international schools

• Excellent facilities for leisure, sports shopping and healthcare

• Progressive, tolerant and multicultural society

ISLAND OF CALM IN A TURBULENT REGION

• Stable economy with relatively low volatility

• Continuous political stability since its inception in 1971

• Ranked 23rd in 2002 Index of Economic Freedoms

LIBERAL INDIAN LAWS ON OVERSEAS INVESTMENT IN IMMOVABLE PROPERTY

The Reserve Bank of India had announced a Liberalized Remittance Scheme (the Scheme) in February 2004 as a step towards further simplification and liberalization of the foreign exchange facilities available to resident individuals. As per the Scheme, resident individuals may remit up to USD 100,000 per financial year for any permitted capital and current account transactions. The Scheme was operationalised vide A.P. (DIR Series) Circular No. 64 dated February 4, 2004. The Reserve Bank of India has received feedback on the Scheme from Authorised Dealer banks and the Foreign Exchange Dealers Association of India and based on the discussions, clarifications on various operational issues of the Scheme are being given below :
Q1. Provide an illustrative list of capital account transactions permitted under the scheme?
The remittance under the Scheme is available to the resident individuals for any permitted current or capital account transactions or a combination of both. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India. However, it was clarified that remittance from India for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

For more information please follow the link http://rbi.org.in/scripts/FAQView.aspx?Id=66 

BUYING A PROPERTY

• Property available for purchase are as indicated on the Availability list

• Booking / Reservation on payment of AED 10,000 - AED 20,000 (non refundable)

• Balance of deposit to be paid in 7 days.

• Thereafter the 1st installment in 30days.

Contracts & Solicitors

Two separate original contract copies are sent to the client for signature after the reservation and both need to be returned to the property developer for countersigning. One original contract copy will be certified by the property developer and returned back to the client.

A high percentage of clients do not use solicitors when signing contracts as they are non-negotiable. Should you wish to find a solicitor, an internet search is a good way to go.

Completion & Beyond

• Utilities & Services: Utilities are the responsibility of the client. Currently DEWA (Dubai Electricity & Water Authority) have a monopoly on utility services. Costs vary dramatically between winter and summer and whether people have balcony doors open or closed etc. An average cost for power and water per month would be approx AED 800.

• White Goods: White goods (ie.kitchen / electrical appliances) are project specific. Fridge and cooker are normally provided as well as designer kitchen and bathroom. The sale contracts give details of the white goods, if any, included in the price.

PAYMENT TERMS

Property Developers have numerous developments currently under construction or at pre-construction stage. Each individual development has a set structure with regard to its payment stages.

Example of Payment Terms
DEPOSIT 10% On signing the reservation form
1st Installment 10% Within 30 days from signing of reservation form
2nd Installment 15% Within 120 days from signing of reservation form
3rd Installment 15% On completion of 20th Floor structure
4th Installment 15% On completion of 40th Floor structure
5th Installment 15% On completion of 60th Floor structure
6th Installment 10% On completion of the Structure
7th Installment 10% On completion date

Bulk Purchase

A “Bulk” purchase is defined by anyone purchasing 4 or more apartments in the same project at the same time or apartments / units for a value exceeding AED 10 million. In such a situation Property Developers may consider nominal discounts.

COSTS INVOLVED IN BUYING/ RENTING PROPERTY

Q. Are there any other costs involved when purchasing an apartment(s)?

A. Land Registry fee of 1.5% - 2 % payable upon completion.

Service Charge payable annually. As it is freehold ownership, the apartment owners will have a say on who the management company is, therefore the management company will always charge competitive rates.

Solicitors are not usually used as the contracts are easy to understand & non-negotiable.

TAX-FREE capital growth and rental income in Dubai.
 

Q. What are the fees for the tenant if renting the apartment?

A. There is a tax payable annually on rent of 5% of rental value. It is normally added on to the DEWA (Dubai Electric & Water Authority) bill and is paid by the tenant only. This tax does not apply if the apartment is not being rented out.

Q. What are the inheritance laws in Dubai?

A. Please consult a specialist for any questions regarding inheritance or tax implications in Dubai.

FINANCE OPTIONS

There are several banks in the UAE that offer Mortgage financing for Properties’s customers.

Illustrations

EXPATRIATES (UAE RESIDENCE)

Salaried : Minimum AED 8,000 depending on the financial background

Self-Employed : Minimum AED 20,000

Age : 21 - 60 Years*

Loan Amount : AED 250,000 - AED 5,000,000 per property maximum of 3 apartments

Loan Tenor : 20 Years (Max.)

Loan to Value : With salary Transfer to the Bank 90% without Salary Transfer 85% Self Employed 75%

Interest : From 6.5% for 50% loan to value To 9.0% for 90% loan to value

Processing Fee : From 0.75%

* Payment to be completed by age 60 years.

Banks such as Mashreq, ADCB, UNB, National Bank of Abu Dhabi, Arab Bank, Amlak, Badr Al Islami are offering mortgage lending. Financing can be up to 90% and for up to 20 years depending on status & eligibility.

Mortgage for Non-UAE residents is also available subject to status - Details can be obtained from the Banks or from our team

Commercial Units

Commercial loans for property is only available to companies buying property (not individuals) and only to companies in the UAE.

Below are the basic points:

• Business should have been operating 3 years although they will look at others on exceptional basis
   

• Min Loan AED 500K
   

• Max Loan AED 20 Million
   

• Loan Tenor - 15 years for 100% UAE owned business, 10 years for fully/part expatriate owned
   

• The aforementioned points are just an outline as each is treated on a case by case basis.