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Following international tax standards and obligations, the United Arab Emirates imposes a 9% tax on company income, with two exceptions. In 2021, the United Arab Emirates became a member of an agreement on a minimum corporate tax of 15% on the income of major international corporations. 136 countries have signed this agreement and agreed that an international company pays taxes in the country where it operates. This is part of the policy to combat international tax evasion and misuse of international law. In the UAE, 90% of the population are foreigners: tourists, expats, workers, entrepreneurs, and investors. The reason why the UAE is so popular in the latter two categories was the absence of corporate taxes. They apply to any business, except for those engaged in the extraction and...

According to the Best Investment Migration Real Estate Index, the UAE is the best country in the rental income potential and cheap property prices per square meter. The new index was launched on February 8, 2022, and is the brainchild of the international consulting company Henley & Partners, engaged in state programs for granting citizenship for investment. With Deep Knowledge Analytics, a machine learning company, H&P has created a comprehensive index for those interested in obtaining citizenship in the country or buying a second home. The index uses over 300 sources to measure 30 parameters, including the market reputation, the quality of life, the country's GDP, the potential income from renting real estate, the associated property costs, etc. The UAE received 82 points on...

The area of Expo 2020 should become the foundation for the local market development in the years ahead. Experts expect the local market to grow exponentially when Expo 2020 is completed, and the venue, District 2020, will be converted into a modern multifunctional area open to expatriates, businesses, and investors. The district was built as a self-supporting community with a wide range of multifunctional residential and commercial properties, similar to a "city-in-a-city". It is known that at least 80% of the infrastructure will be reused. District 2020 will reopen to investors, businesses, workers, and expats in October 2022, 6 months after Expo 2020. Between 3% and 5% of the people who visited the exhibition want to visit District again in the future. The demand for short-term real...

The Agility Emerging Markets Logistics Index (AEML) predicts development prospects for emerging markets. It is compiled by Agility, which provides services for creating supply chains. Among the 50 countries in the index, the United Arab Emirates is the best country to start and run a business and the leader in technological development. Several other countries of the Persian Gulf and MENA regions are also on the leaderboard: Saudi Arabia (3rd place), Bahrain (5th place), Oman (6th place), Morocco (9th place), and Jordan (10th place). According to the level of technical development of the economy ("Technological readiness"), the UAE ranks first, followed by: Malaysia, China, Saudi Arabia, India, Thailand, Qatar, Indonesia, Chile, and the Philippines. "Technological readiness" considers...

By the third quarter of 2022, the Uptown Tower, the eleventh tallest skyscraper in Dubai, will be completed in DMCC. DMCC is the largest FEZ in the UAE. Financial Times marked this territory as «No. 1 Special Economic Zone in the World» from 2014 to 2018. DMCC is one of the key FEZs for the Middle East and the MENA region and a major commercial and technological hub. The Uptown Tower has reached a height of 329 meters, and its construction is to be completed by III Quarter 2022. As a result, the skyscraper will consist of 79 floors, and the total height of the building will reach 340 meters. This project will be the 11th tallest of all skyscrapers in Dubai. The building is located in Uptown Dubai in DMCC. This area is close to Jumeirah Lake Towers, Jumeirah Park, and...

Record mortgage lending volumes of $34 billion show that most buyers are looking for housing for their needs, not investments. The first mortgage payments, reduced by 5%, and low fixed interest rates are the main force attracting many ordinary property consumers to the emirate. Many of them purchase real estate in the country for the first time. The lowest mortgage interest rates reach 1.99%, and the most popular rate is 2.39%. For example, in 2019, the mortgage interest rate was 3.75%. In the fourth quarter of 2021, there was information about a possible increase in mortgage rates across the UAE if the US Federal Reserve decided to raise its interest rates and the UAE Central Bank followed suit. Last December, there was high annual growth in loans, as many ordinary consumers rushed to...

The total value of loans issued exceeded $34 billion. The mortgage lending market recorded 19,520 mortgage transactions in 2021, 26% higher than the previous record in 2017. The total value of these transactions exceeded $34 billion. Compared with 2020, there is an increase of 51% in volume and 46% in value. Borrowers issued many mortgage loans in the first quarter of 2021, most of them in January — 3,004 mortgage loans with a total value of $ 5.66 billion. The mortgage market was growing throughout the year and in the fourth quarter recorded 4,187 mortgages, 10% more than in the fourth quarter of 2020 and 21% more than in 2019. December 2021 broke the December 2020 record by 1.3% and December 2019 by 3.8%. In the last month of the year, there were 1,178 mortgages with a total...

After the rally in the luxury real estate market and the villa sector in 2021, buyers' interest should shift to more affordable housing. In any real estate sector, there is a price limit, with unattractive offers, buyers prefer to move on. There is also an offer that is always quickly consumed if it becomes the subject of attention. Houses are not built quickly. This is what happens in the luxury property and villas sector. A rapid reduction in supply only spurs price increases, and they are less satisfied with buyers. In this situation, it is natural that demand moves to other sectors. In this case, it is affordable housing — apartments. One of the main conclusions of 2021 was the failure of major narratives about the local real estate market. Both the narrative of oversupply...

The head of Evernest Holiday Homes Rental LCC and his accomplices deceived employees, tenants, and homeowners by fleeing with the money before Christmas. Evernest Holiday Homes is a real estate agency acting as an intermediary between homeowners in Dubai and tenants looking for vacation properties. At least, that is how they introduced themselves. The company worked according to the scheme used in Dubai in 2019. Evernest contacted homeowners in in prestigious city areas and offered to sublease their property at above-market rates. However, payment was not made immediately. Each person received four receipts to be cashed in the future. At the same time, tenants were selected and offered a year’s rent at below-market rates. But the rent had to be paid in advance. Taking advantage...

According to the Travelers' Choice Awards for 2022, TripAdvisor, an international platform for tourist travel. CNN reports that Dubai has received high ratings from users on all indicators of tourist attractiveness. Dubai has always been the world's key tourist destination and began to recover from the effects of the COVID-19 pandemic in 2021, which was the year before. Currently, tourism is driven by the high level of epidemiological safety in the UAE and the high vaccination rate. For the time being, it is enough to have simple entry regulations for tourists and to be vaccinated with one of the drugs approved by the UAE government. Since October 2021, Expo 2020 has influenced Dubai’s popularity. It will last until March 31. After Dubai, there are other Middle Eastern...

The latest report from the consulting agency indicates that the rental rates will continue to rise for residential and commercial properties slowly but steadily. Real estate sales prices and rental rates in Dubai have almost reached pre-pandemic levels. The number of transactions and their cost broke records in 2021. However, one must not forget the "low base effect", which can distort the market picture with high recovery rates. Haider Tuaima, head of the Real Estate Market Research Department at ValuStrat, pointed to positive changes in the VPI indicator (index of changes in the capital value of off-plan real estate and offices). In 2021, the index recorded a 67.3-point increase in rent in Dubai. This is impressive growth — quarterly by 6.7% and 18.9% for the year. But the...

As of the beginning of January 2022. Popular areas for those looking for apartments at affordable prices are: Jumeirah Village Circle (JVC); Al Nahda; Mirdif; Dubai Silicon Oasis; Akoya Oxygen. Affordable apartments are popular in Dubai South and Reem Dubai. Luxury apartments are the best in such neighborhoods as: Dubai Marina; Downtown Dubai; Jumeirah Beach Residence; Palm Jumeirah; Al Barsha. Zoom Property Insight reports that the apartment districts near Expo 2020 are increasingly attracting new demand. Especially Dubai South. The consulting agency ValuStrat points out that 2021 proved to be better than the predicted results, and 2022 should reinforce the trend of the general increase in property prices and rental rates. However, this increase will be more...

The data from the Dubai Land Department (DLD) indicates 173 transactions, and according to other data — 227 on the first working Friday of January. As a result of the new labor week system, 1,766 transactions for $1.97 billion were concluded in the first 7 days of 2022. The new working week lasts four and a half days. The second half of Friday, Saturday, and Sunday are days off. According to the DLD data, out of 173 registered transactions, 12 were for land plots and 161 for apartments and villas. The areas with record land sale prices are: Marsa Dubai — about $100 million; Al Thanya Fifth — $7.62 million; Palm Jumeirah — $4.62 million. Jebel Ali First leads in deals, followed by Palm Jumeirah and Warsan First. Palm Jumeirah and Marsa Dubai are among...

The Dubai Land Department (DLD) report released in early January indicates a 65% increase in transactions and a 71% increase in value compared to 2020. In 2021, 52,415 investors made 72,207 real estate investments for $40.29 billion in the emirate. Thus, compared to 2020, the number of investments increased by 73.7% and the number of investors by 65.6%. This represents a significant annual increase in new investors in the emirate compared to previous years. There are several reasons for Dubai's attractiveness to foreigners, both economic and social, but the main one is high epidemiological security. Among other international real estate market leaders, Dubai is distinguished by low morbidity rates, a high level of vaccination, and minimal quarantine restrictions for residents and...

Prices for villas in Palm Jumeirah are only 1.5% of the record figures of 2014. The annual average price increase of 17% has been unprecedented since 2014. According to ValuStrat Price Index (VPI), an index of changes in the capital value of freehold real estate and offices, villas increased by 2.5%, while apartments increased by about 1%. According to the Dubai Land Department (DLD), in 2021, there were 84,772 real estate transactions for about $82 billion. Economic incentives to encourage foreign investors, the successful fight against COVID-19, and EXPO 2020, which began on October 1, 2021, played an important part. ValuStrat reports that the apartments in the emirate have shown growth between 0.9% and 8.8%. However, in some areas, such as Jumeirah Village and Dubai Sports City,...