Information

ABOUT DUBAI 

History

Despite evidence of human settlements in the region dating back several thousand years, the United Arab Emirates, and specifically Dubai, has a rather short history.

In 1833, some 800 members of the Bani Yas tribe, led by the Maktoum family, left neighbouring Abu Dhabi and settled alongside Dubai Creek, claiming the area as their own. The Creek was a natural harbour and as a result the Maktoums soon turned the area into an established centre for fishing and pearling, and sea trade.

Unfortunately, the early nineteenth century was marked by tribal feuds and the threat of piracy across the region. After a series of bloody maritime skirmishes, warring Sheikhs signed an 1853 treaty with the United Kingdom, agreeing to a "perpetual maritime truce", and forming the Trucial Sheikhdoms. The treaty was further strengthened in 1892 whereby the British promised to protect the ‘Trucial Coast' from all aggression by sea and to help in case of land attack.

The British maintained a permanent base in the area for the next 70 years, fostering stability and assisting the Trucial Sheikhs with the formation of the Trucial States Council. By 1968, two years after the discovery of oil in the region, the UK announced its decision to withdraw from the Trucial States. Finally, in 1971, the UK ended the treaty relationships with the Trucial Sheikhdoms, and on December 2nd 1971, the United Arab Emirates was born. The UAE originally comprised six sheikhdoms or emirates - Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain and Fujairah - with the seventh and final sheikhdom, Ras Al Khaimah, joining in early 1972.

Throughout the late 1960s and 1970s, a steady influx of oil revenue enabled an ambitious programme of infrastructural development. The late H.H. Sheikh Rashid bin Saeed Al Maktoum, Ruler of Dubai from 1958-1990, implemented a series of initiatives aimed at turning the small trading post into a world-class city. The pace of development was fast, with schools, hospitals, roads and a modern telecommunications network built in record time. Dubai International Airport was expanded and a runway extension which could accommodate any type of aircraft was built. The largest manmade harbour in the world was constructed at Jebel Ali Port, which was also designated a free zone in order to facilitate trade.

Sheikh Rashid's formula for development was becoming evident to everyone - visionary leadership, high-quality infrastructure, an expatriate-friendly environment, zero tax on personal and corporate income and low import duties. The result was that Dubai quickly became a business hub for a region which comprises Africa, Eastern Europe, the Middle East and Asia.

 DUBAI 1990

In the 1980s and early 1990s, Dubai made a strategic decision. Avoiding over-reliance on diminishing oil fields, the emirate began to diversify heavily into tourism. Numerous luxury hotels and leisure developments have paid huge dividends for Dubai, attracting millions of visitors every year, and paving the way for the world-renowned city we see today.

Dubai today

Perfectly situated at the trading crossroads of East and West, Dubai has fully established itself as a world-class destination for business and leisure. The emirate's breathtaking pace of development has promoted an almost insatiable demand for commercial and residential property, prompting a change in the law to allow foreign-nationals to own property. As a result, Dubai is home to some of the world's most ambitious building projects. Three Palm islands, The World, Dubai Waterfront and Burj Dubai - the world's tallest building - are just some of the many major developments that are currently under construction.

This spectacular expansion is just one of the factors that make Dubai a uniquely exciting and attractive place to invest, live and work. It boasts an idyllic location alongside the clear blue waters of the Arabian Gulf, uninterrupted sunshine, a truly cosmopolitan atmosphere, plus excellent education and healthcare facilities. Tourists and residents alike can take advantage of the world's most luxurious hotels, spectacular shopping malls, countless gourmet restaurants, dazzling nightlife and a year-round calendar of top class sport, entertainment and cultural events.

Dubai Lifestyle

Golf
Golf is big business in Dubai, and you will never be far from a world-class golf course. Three of the most famous courses are:
Emirates Golf Club: the venue for the annual Dubai Desert Classic, a major stop on the Professional Golf Association tour. It is also home to the Dubai Ladies Masters, and the Club features a course designed by Nick Faldo.
Dubai Creek Golf & Yacht Club: located in an idyllic Creekside position, and voted one of the world's ‘Top 100 Must-Play Golf Courses'.
The Montgomerie Dubai: developed in association with Colin Montgomerie and Desmond Muirhead, this course boasts the largest single green in the world.

Tennis
The Dubai Tennis Championships are part of the ATP tennis tournament, and feature both Men's and Women's Open. Located in the Aviation Club Tennis Centre and Dubai Tennis Stadium, the event has been held annually in late February or early March since 1993.

Horse racing
The Dubai World Cup is the world's richest horse race with a total purse of US$21.25 million. The finale of the Dubai Racing Club season, this thoroughbred horse race has been held annually, in late March, at the city's Nad Al Sheba race course since 1996.

Motorsport
The UAE Desert Challenge is the penultimate round of the FIA Cross Country Rally World Cup and the FIM Cross Country Rallies World Championship. The event attracts world-famous drivers and riders such as Stephane Peterhansel and Marc Coma for a six day rally through some of the Empty Quarter's most demanding dunes.

Sailing
Dubai's association with the sea dates back hundreds of years, so it is no surprise that the city hosts many important nautical events. A variety of different types of competition occur all year round, including Traditional Rowing, Wooden Powerboating, the UAE Jetski Race, Dragonboating and Traditional Dhow Sailing amongst others. Most notably, Dubai International Marine Club has hosted the final round of the UIM Class 1 World Offshore Powerboat Championship since 1992. Dubai is also home to the Dubai International Boat Show, an eagerly-anticipated event which attracts many thousands of people each year.

Leisure
Whether you are looking for an active day out or some much needed relaxation, Dubai offers it in abundance.

Activities
Dubai is the ideal place for an active person, with perfect temperatures for eight months of the year allowing plenty of outdoor activities.
Spending time on or under-water is a common pastime, and you will find plenty of sailing clubs in the emirate. Jetskiing, kitesurfing, wakeboarding, surfboarding and waterskiing are also on offer, and a number of scuba diving clubs offer courses and trips off Dubai's west coast or the east coast's Indian Ocean.

With millions of hectares of desert, there is a large off-road fraternity in Dubai. Take your pick from quad bikes, dune buggies, dirt bikes, 4x4 or SUV and head out into the dunes for an exhilarating day of desert bashing, followed by a BBQ and camp-out under the stars. The Hajar mountain range on the outskirts of the emirate also provides a welcome change of scenery, with jagged peaks jutting up from the rust-red dunes.

Dubai also has numerous swimming, running and cycling clubs, horse riding and polo facilities, cricket, rugby and football grounds, and volleyball, basketball, squash and tennis courts.

Relaxation
With miles of pristine white beaches, there are plenty of places where you can chill out for the day. There are several public beaches in Dubai, some of which are restricted to families or women only on certain days of the week. Most of the sea side hotels have beach clubs which you can access for a reasonable fee, to enjoy facilities such as chilled pools and waiter service. Dubai also has a surplus of spas, where you can revive your senses and rejuvenate your body in five-star surroundings.

Shopping
Shopping is the national pastime of Dubai and this is reflected in the many incredible and ornate shopping malls which dot the landscape. Familiar high-street and designer brands can be found all across the city, as can numerous innovative and creative boutiques. An annual month-long Shopping Festival is held in spring each year, attracting up to 3.5 million visitors who flock to Dubai's malls for incredible offers and discounts. Dubai is also well-known for its love of fine jewellery, and the traditional Gold Souk and modern Gold & Diamond Park are both excellent sources of gold, platinum and precious stones at keen prices.

Dining
Dubai is loved by connoisseurs of fine dining, and is home to many award-winning restaurants and Michelin-starred chefs. Gordon Ramsay opened ‘Verre' in the Hilton Dubai Creek back in 2001, which has garnered Restaurant of the Year and Sommelier of the Year on numerous occasions by TimeOut and prominent food critics. Marco Pierre White recently opened a gourmet bistro in partnership with jockey Frankie Dettori, and Gary Rhodes has also put his name to a new restaurant. Independent restaurants are also excellent - often unlicenced, but offering a kaleidoscope of global cuisine to suit all budgets. 

FOREIGN PURCHASE REQUIREMENTS

May 2002 was a momentous date for the Dubai economy, as this was when Property Laws were relaxed, allowing foreign nationals to purchase property in the emirate for the first time. The first few developments in Dubai sold relatively well, as they were priced extremely low due to the cautious nature of this brand new market.

Fast-forward six years and Dubai is one of the foremost places, internationally, to invest in property. A booming economy in conjunction with low penetration has fuelled the property market and prices are extremely buoyant. No corporate or income tax has made Dubai an attractive place to work, and 800 new residents arrive each day in the emirate looking for somewhere to live.

With approximately US$90 billion invested in property developments - either completed or in the development stages - buying property in Dubai has never been hotter. Buyers can choose from towering city or luxurious marina apartments to spacious beach front villas or exclusive gated communities.

As a foreign purchaser, there are now no legal restrictions for buying property in Dubai. Mortgages are available for residents and non-residents alike, and you do not need to intend to live in Dubai once you have purchased the property. Residence visas are available, however, if you do intend to live or spend a significant amount of time in the emirate.

Please note, freehold is not available; 99-year renewable leasehold is currently the only form of purchase allowed in Dubai.

FINANCE OPTIONS

Both local and international banks now allow mortgages on Dubai property. The amount of loan-to-value available typically ranges from around 70-80% for foreign nationals, although loans of 95% are available on some properties.

Loan terms are between 10-25 years, with most residents being offered a 15 year mortgage term. Mortgages are not available to those over the age of 70. Loans in the UAE are predominantly repayment mortgages, although as the market matures new players are introducing interest-only mortgages.

Not all banks will lend on all developers. When selecting a mortgage provider it is critical that you find out which developments they will lend on, or vice versa. International banks tend to be the most restrictive in this sense, and also tend to charge a higher rate of interest. As always, it pays to shop around.

Expected costs
There are no government taxes related to property purchase. Instead, a series of ‘fees' are levied, based as a percentage of the purchase price or lending amount. These are subject to change but are currently as follows:

Transfer fee    - from 1% to 7% dependent on seller
Purchase registration   - 1.5% of purchase price
Mortgage registration  - 0.25% of lending
Bank arrangement fee  - 1% of lending
Mortgage placement fee  - 0.50% of lending
Valuation fees    - differ from bank to bank

International mortgage currencies
Depending on your mortgage broker, you can choose to have your mortgage in the following currencies:

Sterling
Euros
US dollars
Canadian dollars
Yen
Singapore dollars
Swiss franc
Australian dollars
New Zealand dollars

Required documentation
Please note that this is not an exhaustive list and is subject to change without notice.

Employed
Last 3 months payslips
P60 for the last two years
Employers reference letter stating role and salary
Last 6 months bank statements

Self Employed
Accountant's certificate
Last 6 months bank statements
Latest self assessment tax return

International lenders
Lloyds TSB
HSBC
Barclays

Local banks
Emirates Bank
National Bank of Dubai
ADCB
Commercial Bank of Dubai
Dubai Islamic Bank
First Gulf Bank
Mashreqbank

Local financial institutions
Tamweel
Amlak Finance

INVESTMENT INFORMATION

Property prices
With property prices in Dubai at an all time high, many investors are concerned that prices have either peaked, or are so high that they will allow little room for further capital growth.

It is true that the Dubai property market has witnessed considerable growth and speculation since 2002. However, many industry experts believe that this growth trend is likely to continue for several reasons.

Firstly, supply and demand. The demand for property in Dubai exceeds the current supply by a considerable margin, which pushes up prices. Many developments which were scheduled for completion in 2007 and 2008 have been delayed, which compounds the pressure on existing housing.

Inflation is also a key driver. Prices are rising in general across the emirate, and property is no exception. Construction costs are rocketing, land prices are appreciating, and salaries are escalating. All these issues have a direct effect on off-plan property prices, and as a result increase the asking price of finished developments.

Confidence in the market - which has been bullish for some time - is also rising. Major projects are starting to come on stream and these visible, tangible developments are boosting market buoyancy. Furthermore, introduction of market regulations such as the Escrow law has reassured the external investment market, attracting more global players. Also, financial rules have been relaxed, meaning mortgages are easier to obtain. Until recently, there were only a handful of mortgage companies in the country, and the sector was dominated by local banks. Today, international financial institutions are lining up to take advantage of the lucrative business opportunities available in the region. This opens up the housing market up to a whole new audience, adding further pressure to the supply chain.

New projects are being released on a weekly basis, creating an additional buzz in an already excitable market. The UAE is widely regarded as the best place to invest in the Middle East, and Brand Dubai continues apace, generating huge interest in the emirate from across the globe.

These reasons alone are more than sufficient to allow the prediction of further price increases. But when you look at Dubai prices in a global context, it is clear that there is still plenty of upward room for manoeuvre.

A luxury property in Hong Kong's affluent Peak district commanded US$7,100 per square foot in December 2007, setting a new record price for Asian residential real estate. A comparable "super-prime" property in London's Chelsea Square recently fetched US$6,000 per square foot.

A recent CBRE Hamptons report shows that prime residential property in London costs about US$2,400 per square foot, and in New York commands around US$2,000 per square foot. Tokyo and Hong Kong sit a little behind at US$1,800 and US$1,600 respectively.

So where does Dubai fit in? Currently, the average price of property in Dubai is about US$435 - US$465 per square foot, whilst prime property in Dubai is hovering around the US$820 mark.

Accordingly, even though Dubai is no London, New York or even Hong Kong, there is still tremendous scope for property prices to surge even higher than current levels. As one of the fastest growing regions in the world, which benefits from high liquidity and a booming economy, the Dubai property market is undoubtedly expected to gain further ground in the medium term.