Top reasons to invest in Dubai

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Dubai: a world of opportunity

Dubai offers a wealth of opportunities for those seeking to invest. The Middle East, Africa and South Asia (MEASA) region is home to over three billion people, ever-increasing mobile connectivity and increasing levels of trade and investment. MEASA is demanding ever more widespread and sophisticated financial services, which represents an opportunity for innovative companies within the financial sector.

As trade and investment increase, there will also be a growing market for wholesale banking and capital markets. This underpins Dubai’s place on the map as the de facto hub between all of the major markets within the region, and that is why more than US$350 billion of trade flows through Dubai every year.

A large proportion of the population remains unbanked and the potential for fintech products is vast. With continued growth, wholesale banking and capital markets will become increasingly important and Dubai’s position as a global trade hub places it in pole position.

Dubai as a financial hub

Filling the time-zone gap between the leading financial centres of London and New York in the West, and Hong Kong and Tokyo in the East, DIFC stimulates trade and investment flows along the South-South economic corridor. The Centre will triple in size by 2024 and establish a world-class financial destination by deepening and broadening impact for constituents and global sectors, and investing in innovation.

Ensuring best in class regulatory and judicial framework, DIFC is made up of the Dubai Financial Services Authority (DFSA) and the legal bodies of Dubai Courts, the DIFC Courts and two arbitration centres, Dubai’s branch of the London Court of International Arbitration (DIFC LCIA), and the Dubai International Arbitration Centre (DIAC).

A vibrant banking and trade sector

DIFC hosts 17 of the world’s top 20 banks, seven of the top law firms and 13 of the world’s most prestigious wealth and asset management companies. It is the preferred regional hub for some of the world’s most reputable banking institutions, including Barclays, Citibank, HSBC and Standard Chartered, which collectively operate 85 branches in the city, while credit card giants Visa and MasterCard are also headquartered in Dubai.

Opportunities for fintech

This environment is fertile ground for fintech investments, which grew in number by 66% in the MENA region between 2014 and 2019. With its clear investments in AI and technology, Dubai is ideally positioned to benefit from the fintech explosion.

Dubai is a city where innovation is in the DNA, empowerment is the norm, dialogues are global and horizons expand every day.

Bank returns on equity in the MEASA region are 50% higher on average than in Europe and the USA and the average margin on core financial products is 33% higher than the global average. MEASA’s combined market has grown three times faster than developed markets over the past 20 years and has a projected growth of 4.6% annum over the next five years.

DIFC is also home to Dubai’s stock exchange, a buoyant insurance sector and derivatives equities and commodities platforms like Nasdaq Dubai, Dubai Financial Market and Dubai Mercantile Exchange.

At DMCC (Dubai Multi Commodities Centre), you will find commodities and derivatives platforms and exchanges including the Dubai Gold and Commodities Exchange, the Dubai Diamond Exchange and its Sharia compliant platform, DMCC Tradeflow.

Opportunities for investors and venture capitalists

Dubai is home to the highest number of investors and venture capitalists in the region. Crowdfunding platforms and lower-cost portfolio products have opened up investment, and are giving middle and lower-middle-income citizens the ability to become investors. Growth in the provision of credit, an increasing interest in private equity and a rise in venture capital are also helping to drive growth in the middle market. Dubai-based VCs are also contributing to the fintech surge: Wamda Capital, founded in 2014 and one of the most active VCs in the UAE, invested US$17.4 million in financial products comparison website YallaCompare, and has also launched a US$100 million fund named WamdaX; and BECO Capital has broadened its exposure to FinTech, investing US$3.5 million in insurance comparison site Bayzat.

Real estate in Dubai

Dubai’s property market has seen a massive construction boom that has attracted overseas investors. With its world-class infrastructure and impressive skylines, the city is an ideal place for real estate investment. Dubai offers a plethora of opportunities, whether for ready-to-move-in properties or long-term investments, in the residential, commercial, off-plan, industrial, and hospitality sectors. As Dubai’s real estate market continues to grow, it presents investors with an unprecedented opportunity for substantial returns.

World leading fintech innovation

As technology is transforming the way financial transactions are enabled and completed, Dubai is taking the lead in the region’s fintech sector with a wealth of start-ups setting up operations in the city. In the Middle East and North Africa alone, fintech start-ups have raised more than US$100 million in funding over the last decade.

With Dubai today recognised as one of the world’s top ten fintech hubs and number one in the region, the DIFC is spearheading the city’s innovation ecosystem, and is well placed to drive growth. One such initiative is a low cost Innovation License. Offered to technology enablers, it caters to firms that fall under FinTech, RegTech, InsureTech; and other SMEs interested in developing or testing new, novel or innovative products.

Surging e-commerce market

Dubai’s e-commerce sector is realising huge growth potential in Dubai, with the value expected to reach US$27.2 billion in 2020 in the UAE alone. A series of reforms and government measures to stimulate growth are set to drive UAE’s gross domestic product to pass the US$500 billion mark over the next few years.

Frequently asked questions

What are investment opporunities in Dubai?

Dubai offers many investment opportunities across various sectors, such as real estate, manufacturing, finance, and technology. The city’s strategic location, modern infrastructure, and business-friendly policies make it an attractive destination for investors.

Can Foreigners invest in dubai?

Dubai is a great place for foreigners to invest in. The government has favourable policies in place to welcome foreign investment, offering benefits like full ownership of businesses, low tax environment, easy business setup, access to talent and funding, etc.

Best Way to invest in dubai?

Investing in Dubai can be done through various ways. Once your business idea is finalised, we can help with setting up your business in Dubai after evaluating your requirements and by providing you the best options available. Investors can explore opportunities in real estate, either through buying properties or real estate investment trusts (REITs). Additionally, investors can explore opportunities in the finance, tourism, and technology sectors.

What investment and business is best in dubai?

Dubai offers diverse business opportunities. Real estate, hospitality, retail, finance, and technology are some of the sectors that are particularly attractive to investors.