Tips for long-term investments


Dubai is considered the most developed and mobile region of the UAE. And there are many reasons for it.  It was here that the first free zone appeared that allowed foreigners to do business without attracting local residents to partnership, it was here that the tourism sector made so serious changes that it became prestigious to rest in Dubai, and the real estate market was maximally modernized here, one after another began to appear giant skyscrapers, luxury villas and other noteworthy objects.

Dubai is popular nowadays as an object of long-term investment.

Long-term investments often bring a stable income over a long period of time and provide the investor with financial security. Some consider this type of investment more preferable for capital gains than savings accounts.

Depending on the situation on the market, bank deposits can bring only 1-2.5% per annum. Thus, long-term investments in securities or in real estate bring more profit.

The growing real estate sector of the UAE attracts more and more investors from abroad. Due to the fact that by the end of 2018 the authorities will allow foreign investors to acquire assets in full ownership, it is expected that the amount of foreign direct investment in the country will grow.

Beginning investors are advised to diversify their portfolios by investing in diverse asset categories in order to minimize risks.

Such a strategy guarantees security so that in the event of unprecedented market conditions, the investor’s capital is distributed among the various segments and continues to grow.

Long-term investments, the management of which requires too much time, may prove to be unprofitable. Therefore, some investors choose managed investments, including in the hotel real estate. According to a recent report by Hub Report Knight Frank consulting company, Dubai – in comparison with other cities of international importance – is at the 1st place in the world “in the number of hotel rooms per capita.” There are 29.9 rooms per 1000 citizens of Dubai, which exceeds the figure of Paris, which has 17.6 rooms per 1000 citizens.

According to the report of Ernst & Young, in the first quarter of 2017, the occupancy rate of Dubai hotels remained the highest in the MENA region, about 87%.

Dubai Airport is considered the busiest in the world, and the development strategy of Dubai Tourism Strategy 2020 suggests that by 2020 the city will be annually visited by 20 million tourists.