Dubai Property Investments

Dubai is unusual in that its population is comprised mainly of expatriates, with UAE nationals (Emiratis) constituting the minority. A quarter of the population reportedly trace their origins to neighbouring Iran. Dubai is also home to some 100,000 British and other western expatriates. The UAE government does not allow any form of naturalization or permanent residence to expatriates. However, foreigners are permitted to purchase and own property without a local partner or sponsor.

There are an increasing number of freehold villas and apartments in many parts of Dubai such as The Greens, Dubai Marina, Dubai Silicon Oasis, etc. Ownership is either permanent or on a 99 year lease depending on which area—freehold areas were announced in the press in July 2006. Ownership or lease of a completed residence allows the owner to apply for a residency visa on a three year renewable basis.

Property and real estate

Oil reserves in Dubai are less than one-twentieth those of Abu Dhabi, and oil income represents a small proportion of the emirate's income. Today, Dubai is an important tourist destination and port, but also increasingly developing as a hub for service industries such as IT and finance, with the new Dubai International Financial Centre (DIFC). Transport links are bolstered by its rapidly-expanding Emirates Airline, founded by the government in 1985 and still state-owned; based at Dubai International Airport, it carried over 12 million passengers in fiscal year 2005.

The government's decision to diversify from a trade-based but oil-reliant economy to one that is service and tourism-oriented has made real estate more valuable, resulting in the current property boom. Construction on a large scale has turned Dubai into one of the fastest growing cities in the world, equalled only by the large Chinese cities.

The property boom is largely driven by Mega-Projects - Inland projects include Dubai Marina, The Burj Dubai Complex, Dubai Waterfront, Business Bay and Dubailand.

The aspirations of the ruling sheikh are reflected by the ultra-modern architecture of the city; home to iconic skyscrapers such as Emirates Towers, which are the 12th and 24th tallest buildings in the world, and the Burj al-Arab located on its very own island in the Persian Gulf and currently the tallest hotel in the world.

Emaar Properties is currently constructing what will become the world's tallest structure, the Burj Dubai. The final height of the skyscraper is a closely guarded secret - an indication of the developer's resolve to attain the title of the world's tallest building and its intention to hold on to it for as long as possible - but estimates so far point to a height upwards of 810m. Burj Dubai is expected to be completed in 2008. Burj Dubai's neighbour is another behemoth under construction: the world's largest shopping mall - the Dubai Mall.

Also under construction is what is planned to become Dubai's new Central Business District, named Business Bay. The project, when completed, will feature a phenomenal 500 skyscrapers built around an artificial extension of the existing Dubai Creek.

In February 2005, the construction of Dubai Waterfront was announced, it will be 2½ times the size of Washington D.C., roughly seven times the size of the island of Manhattan. Dubai Waterfront will be a mix of canals and islands full of hotels and residential areas that will add 800 km (500 miles) of man-made waterfront. It will also contain Al Burj, another one of the tallest buildings in the world.

Dubai has also launched Dubiotech. This is a new park to be targeted at Biotech companies working in pharma, medical fields, genetic research and even biodefense. The aim of this park is to foster the growth of this sector in Dubai and to utilize the region's talent in addressing this rapidly growing sector.

The International Media Production Zone is a project targeted at creating a hub for printers, publishers, media production companies, and related industry segments. Launched in 2003, the project is scheduled to be completed in 2006.

A new project was announced on May 1, 2006 by the authorities. It is named Bawadi and will consist of a 27 billion US-dollar investment intended to increase Dubai's number of hotel rooms by 29,000, doubling it from the current figure offers now. The largest complex will be called Asia, Asia and will be the largest hotel in the world with more than 6,500 rooms.

The first villa freehold properties that were occupied by non-UAE nationals were The Meadows, The Springs, and The Lakes (high-end neighbourhoods designed by Emaar Properties, collectively called Emirates Hills).

Expatriates of various nationalities have been pouring capital into Dubai in the past several years, greatly contributing to the city's prosperity. Iranian expatriates alone are estimated to have invested up to US$200 Billion in Dubai

Construction

Since 2000, Dubai's municipality has initiated a plethora of construction phases and plans across the entire city of Dubai, predominantly in the Mina Seyahi area, located further from Jumeirah, towards Jebel Ali. In many areas, it is not easy to see Dubai's sky without at least one crane in your view; Industry experts cautiously estimate that 15% to 25% of the world's cranes are in Dubai. Construction in Dubai and the UAE in general is a much faster process than in any Western country.

One of the main reasons for the boom in construction in Dubai is its drive to diversify the economy. The Dubai government does not want to depend on its oil reserves which are largely believed to become exhausted by 2010 and, as such, has diversified its economy to attract revenues in the form of expanding commercial and corporate activity. Tourism is also being promoted at a staggering rate with the construction of Dubailand and other projects that include the making of mammoth shopping malls, theme parks, resorts, stadiums and various other tourist attractions.

Another reason for the construction boom is the recent reversal of a law in 2002 that allows non-nationals of the UAE to own property (not land) in Dubai (albeit freehold and 99 year leases are actually sold to people with ownership still remaining with private companies). In Dubai, demand is currently outstripping supply by a significant margin and is showing no signs of slowing in the near future. Rents have skyrocketed with the recent inflow of professionals and companies from around the world who are attracted by Dubai's no-tax benefits although rises have been capped to 15% per annum up to 2006 under a directive from Sheikh Mohammad. Legislation in this area is still developing as the property market for foreigners is relatively new.

Cultural and Artistic Developments

Dubai is quickly aspiring to enrich its cultural scene with the $13.6 billion development of the Dubai Cultural Village. This development will include art museums and performing arts centers as well as libraries, schools for music and dance, rare book stores and open spaces for recreation.

• Dubai has a growing number of stages including the Royal Hall at the Dubai Pearl, and the Dubai Community Theatre. The Madinat Theatre is also one of the most significant and luxurious theaters in the region, hosting many West-End productions.

• The Dubai film festival is an annual film festival that attracts the stars from all over the world. Dubai is also developing the Dubai Studio City which aims to be a center for artistic production on the screen.

• Dubai is currently building an island opera house which has been designed by Zaha Hadid.

• An art museum and a general museum are currently being built.

• In 1998, Finance Minister, Sheikh Hamdan bin Rashid al Maktoum, backed the launch of the international Dubai Business Channel which was to be the first English language international TV channel to be based in the Middle East. Its editor, Afshin Rattansi, wrote about the undertaking in his book, "The Dream of the Decade".