An Investors Guide To Dubai

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Dubai is the 2nd largest of the seven Arab emirates that comprise the United Arab Emirates - the others are Abu Dhabi, which is the the capital city, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.

Facing the Persian Gulf, the city of Dubai stretches across the Dubai Creek, a natural inlet which parts the city into the Deira and Bur Dubai districts.

By the turn of the 20th century Dubai was a sufficiently prosperous port which attracted settlers from Iran, India and Baluchistan, while the souk on Deira side was said to be the largest on the coast, with some 350 shops.

The facilities for trade and free enterprise were enough to make Dubai a natural haven for merchants who left Lingah, on the Persian coast, after the introduction of high customs? Settlers were mostly of distant Arab origin and Sunni, unlike most Persians, and naturally looked across to the Arab shore of the Gulf finally making their homes in Dubai.

They were mostly Persians, and naturally looked across to the Arab shore of the Gulf finally settling in Dubai. They continued to trade with Lingah, however, as do many of the dhows in Dubai Creek today, and they named their district Bastakiya, after the Bastak region in southern Persia.

Oil was discovered in Dubai some forty years ago. But it has not relied on this alone and has reinvested into creating a modern infrastructure and amenities and developing as a strong trading centre and tourist destination.

The United Arab Emirates as a whole has an open economy with high income per head and a sizable annual trade surplus. It has a sub-tropical climate with average temperatures ranging from about 24 degrees in January to 41 degrees in mid summer.

An explosion of exotic property developments in Dubai was signalled by a 2002 Royal decree permitting foreigners to own property. Previously only UAE nationals were allowed the privilege. However, the problem remained that there was no federal laws recognising freehold tenure.

Property laws are still developing but currently there remains some fuzziness about the value of Dubai freeholds (which come with a residency permit) whose value relies partly on the international trading credentials and good name of the country rather than enforceable law.

Even so the Dubai building boom has attracted investors from across the world, partly due to its tax incentives - but also because of the climate and its luxury lifestyle.

Since 2002 property prices have been increasing by rates as high as 25 per cent per annum. However, prices remain low by UK standards. Meanwhile rents are predicted to continue to rise at the same rate as property prices - although fly to let investors should note that there are no eviction laws in Dubai.


About the Author:
A focus on investment property Dubai is one of many dedicated country focus sections that can be found on Fly2let.net, the free unbiased resource for overseas property investors. For UK buy to let investments visit Residentiallandlord.co.uk.



Article Originally Published On: http://www.articlesnatch.com


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