The authorities of Abu Dhabi have the main objective of attracting the largest number of investors from around the world. Therefore, in Abu Dhabi there are a series of enclaves that have become favored by millionaires from other countries who find this region of the Middle East attractive. The conditions are set for this to be the case, as individuals do not pay taxes on income, interest, royalties, dividends, and more.
The possibilities are endless, and in the United Arab Emirates a company is exempt from paying taxes on profits if they are below 906,000 euros, and the VAT for legal entities is only 5 percent. Among the investment alternatives, properties are one of the most appealing, and foreigners can conduct their business only in special areas, which are available in Abu Dhabi and Dubai and allow them to obtain the Golden Visa of the United Arab Emirates.
The ideal regions for foreign investors in Abu Dhabi.
Given these conditions in Abu Dhabi, there are three ideal star regions for foreign investments. These are Al-Raha, Al Reef, and Masdar City. The first is considered the “dock city” and is a huge urban development that includes eleven areas distinct from the rest of the city, located along eleven kilometers of beach with a capacity for 120,000 residents.
This space also features residential areas, galleries, shopping centers, beaches for water sports enthusiasts, office buildings, hotels, cafes, museums, and terraces. Meanwhile, Masdar City is another favorite spot for lovers of sustainable architecture. This project is one of the most striking in the capital, which started as the promise of the world’s first sustainable city and currently houses 2,000 residents, expecting to be completed by 2030 with 50,000.
Al Reef, another paradise for investors in Abu Dhabi
Al Reef is one of the most sought-after areas, and specialists confirm that it has a return on investment for apartments that stands out above the rest. Here, the rental yield is 8.04 percent in the affordable housing category. This project is the perfect place for both families and singles because it offers many rental and sale housing options, schools, various services, and entertainment choices.
In the same vein, Al Samha can also be mentioned, which is another of the affordable villas in Abu Dhabi where a small increase of up to 3.95 percent in price per square meter has been recorded. This list also includes the already famous Saadiyat Island, where the sale prices of apartments and luxury villas increased by up to 13 percent in 2023.
Trusts, other important investment points in Abu Dhabi.
Among the preferred investment modes of foreigners, real estate investment trusts (REITs) have received a great reception in recent times. This modality allows investors to access a set of properties and developments in which they can be shareholders, without having to be the direct owner.
But beyond the opulent investments in the area, it is important to know that the residence permit of the United Arab Emirates also depends on the amount of investment. This can last two years if properties worth 750,000 dirhams are owned, with the condition that these assets cannot be resold. Permanence is assured for ten years if properties worth two million dirhams are owned.
