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Top investment opportunities in Dubai

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Investing in Dubai is a compelling opportunity: with its strategic location, the city offers a business-friendly environment with world-class infrastructure and state-of-the-art facilities. Dubai is favoured with a diverse economy, spanning sectors like real estate, tourism, finance, and technology – all of which provide a broad spectrum for potential investments. Additionally, its forward-thinking policies, tax incentives and robust regulatory framework make it an attractive destination for investors

Things to consider

 

With its attractive tax-free structures and zero limitations on the repatriation of profits, Dubai has a strong track record for securing foreign direct investment. According to Dubai FDI, the emirate is considered the preferred global FDI destination for more than 70% of Fortune 500 companies and new economy entrepreneurs alike.

In terms of accessibility for foreign investors, overarching legislation is provided through UAE Federal Law No.19 of 2018 on Foreign Direct Investment (FDI Law), which effectively outlines foreign ownership and under which sectors it is permitted. Subsidiary to this legislation, Dubai comes with its own set of regulations and rights, which are further refined under any one of the emirate’s free zones, depending on how you invest and what structure you choose.

Capital markets

As Dubai’s position as a financial centre has continued to mature, so has its demand for a broader range of capital market products and services.

Nasdaq

One of the major steps taken by Dubai in developing its financial offering was Nasdaq Dubai opening an equity futures market in September 2016, which allowed investors to hedge, short-sell and leverage. In its first three months, it generated a massive 796% increase in open interest.

Today, Nasdaq Dubai is an international financial exchange with a comprehensive regulatory framework that enables companies to raise funds while giving easy access to investors. As part of its innovative strategy, Nasdaq Dubai’s product range allows companies to raise capital through shares, Sukuk and bonds, while exchange-traded funds, derivatives, exchange-traded commodities and Real Estate Investment Trusts (REITs), can also be listed and traded. Similarly to Dubai’s capital markets, access for investors can be issued through the Dubai Financial Market. If you are yet to gain an investor account, you can open one directly through the DFM, Nasdaq Dubai or with a licensed brokerage firm.

Private equity

After almost a decade of significant returns in the US, Europe and Asia leading up to the economic downturn in 2008, Dubai’s Private Equity industry has seen a period of consolidation leaving a select group of larger, stronger firms and while they may not be raising the same amounts as they were at their peaks, research suggests the major players are still averaging US$1 billion per year.

Private Equity funds are considered exempt in Dubai, meaning they can only be operated by professional investors with a minimum investment of US$50,000. In addition, they cannot be traded publicly and are limited to a maximum of 100 shareholders. At the time of registration, the owner will need to decide whether the fund will be managed as a partnership, trust or a company and can choose between being registered under the Department of Economic Development or the Dubai International Financial Centre, the latter being the preferred choice for foreign investors. All investment funds are regulated by the Dubai Financial Services Authority (DFSA).

Setting up a business in Dubai

In broad terms, companies are either registered as ‘onshore’ or within any one of the emirate’s economic free zones. As such, investing in an existing business will be under the terms and conditions of where the company is incorporated.

Find out all the information you need to check our business set up page.

Property

Options for investing in stock varies, depending on what you’re looking to buy and in what quantity.

Today, there is a wide range of online platforms such as Plus500 or eToro that give relatively straightforward access to a broad cross-section of global stocks in return for the industry-standard due diligence documentation. If you are a novice in financial investment, it is typically advised to utilise a professional broker who can oversee and manage your investment on your behalf. A list of registered brokers, along with their ranking can be checked by calling or whatsapp us directly!

Frequently asked questions

Dubai offers a diverse range of investment options across various sectors, including real estate, tourism, hospitality, finance, technology, and renewable energy. Investors can choose from residential and commercial properties, hotels and resorts, startups and tech ventures, as well as participate in government-backed initiatives like Dubai Expo 2020 and Dubai Industrial Strategy 2030.

Investing in Dubai offers several advantages, including strategic location, political stability, business-friendly regulations, world-class infrastructure, and a multicultural environment. Dubai’s strategic location between East and West facilitates trade and business activities, while its stable political climate and transparent legal system provide a secure investment environment. Moreover, the government’s commitment to innovation and sustainability creates opportunities for investors to capitalize on emerging industries and technologies.