Blog

View by year: 2009

Pre-Conceived Ideas & Fears….Reasons to buy UAE Real Estate

Posted on 03/11/09

The UAE is one of many places to invest, and there are many alternative investments to consider when re-apportioning large amounts of money and diversifying investment portfolios. There also things to consider when making prudent decisions regarding investments. When considering if the UAE is a good place to invest in, separating pre-conceived ideas and fears from more factual premises can be helpful.

PRE-CONCEIVED IDEAS ABOUT THE U.A.E:

There are no cars, only camels for transportation

All Arabs are wandering nomads

The United Arab Emirates is politically unstable

Class structure and civil society is misguided and destined for turmoil

The UAE is too far away to invest and manage assets

COMMERCIAL REASONS TO INVEST IN THE U.A.E.:

A majority of U.S. Fortune 500 companies have a presence in the U.A.E.

The United Arab Emirates is an ally of the United States

The U.A.E. is a commercially orientated nation-state

Economic growth in the U.A.E. is attributable to its youth as a country in addition to its ambitious development goals

Asset influx and FDI into the UAE provide financial incentive to protect the nation-state thereby increasing its security

The difference between the first group of ideas and the second group is that the first includes cultural biases, stereotypes and non-commercial reasons not to invest in the U.A.E. These reasons are fallacious and invalid because they don't directly disclaim the potential of investments in addition to being factually incorrect statements.

A next step in determining whether or not to invest in the U.A.E. pertains to the alternatives available to investors. This is a more valid reason not to invest in U.A.E. real estate because not all investments are created equal, nor do all investments appeal to the investment strategy, risk tolerance, and individual comfort or preference of the investor. Addressing and acknowledging these reasons is key in understanding what and why real estate investors should invest in the U.A.E. real estate. Below are some reasons why alternative investments aren't necessarily better that residential or commercial property in the emirates of Dubai and/or Ajman.

Rental income and property appreciation double the chances of profit and the value of that profit

Property purchases through a trust outside the United States is not subject to property tax and/or capital gains tax if sold.

Real estate management and marketing firms can reasonably bridge the distance and language barriers

Since demand for property in the U.A.E. is currently higher than supply, the market is relatively stable

Pre-constructions properties offer pre-market prices with more investor protection

The same potential profit from equally risked investments globally may not be as lucrative

These are just a few of the reasons why pre-constructed and constructed property in the United Arab Emirates might be worth a second look. If investors really believe in due diligence, there are several valid reasons why UAE real estate is worth consideration.

Posted by A.W.Berry
(JavaScript must be enabled to view this email address)

About me: I am an American with a diverse heritage and have lived in several countries. My work experience and background centers around corporate, marketing and financial areas and my educational background includes a M.B.A. in Finance and Marketing in addition to a M.A. in Philosophy.

Sorry, you must first create an account to post comments, or you can login below.

Comments

There are no comments for this entry. Why don't you be the first to post a comment!