The pros of investing in commercial property abroad: the global market

The rapid development of the United Arab Emirates makes the country promising for financial investments of the business elite and investors. A residence permit in the UAE when buying property is one of the most convenient ways to acquire resident status, which provides the right to live, conduct business and enjoy the benefits of the tax system.

Residency in the UAE provides access to a prestigious jurisdiction, a stable economy and security. The exemption from personal income tax, the opportunity to organise international business and the secured infrastructure make the Emirates one of the best investment destinations. Let us consider all the rules, mandatory criteria and important details of residence permit application.

How to obtain a residence permit in the UAE

A residence permit in the UAE when buying a property is an affordable and convenient way to obtain the right to legal residence. The Emirates provides several possibilities for obtaining residency based on the amount of investment, type of property and visa validity period. Let’s look at three key ways of obtaining the right of residence in the UAE, their conditions and advantages.

Classic residence permit in the UAE for the purchase of property

A property investment of AED750,000 (~$204,000) or more qualifies for standard residency status for two years, renewable. A basic option chosen by investors interested in flexibility with minimal renewal requirements.

Basic Conditions:

• minimum investment threshold;
• full payment for the property (mortgage only with a down payment of 50% or more);
• property may be residential or commercial;
• residency period – 2 years, renewal is possible if the property is still owned.

The process of residence permit registration involves personal participation of the applicant at all key stages. The application can be submitted to the General Directorate of Residence and Foreign Affairs (GDRFA) or with the support of agencies specialising in immigration.

The benefits of standard residency include the ability to live in the UAE and use banking services, but this visa does not entitle you to work without a separate labour permit.

UAE resident visa for property for 10 years

For buyers interested in a long-term stay in the country, there is a UAE Golden Visa for property. It is issued for 10 years. This option offers more advantages compared to the standard visa.

Key Terms:

• minimum cost of the object – 2 000 000 AED (~545 000 $);
• possibility to apply for a housing loan (unlike a short-term residence permit);
• the right to rent out accommodation without losing residency status;
• possibility to obtain a residence permit in the UAE for a family (spouses, children, parents).

The option is convenient for investors who consider the purchase of real estate not only as an opportunity to obtain residency status, but also as a source of passive income. UAE Golden Visa holders are not obliged to stay in the country all year round, it is enough to visit the Emirates once every six months.

Peculiarities of residence permit in Dubai in case of purchasing a flat

The capital is considered the financial and investment centre of the region, making investment in Dubai real estate attractive.

Key points that are important to consider:

• the price of the flat must meet the minimum conditions for residence permit – from 750,000 AED;
• Dubai market offers ready-made properties and projects under construction, visa application is possible only after completion of construction;
• a residence permit entitles you to run a business, but not to official employment without a separate permit;
• Dubai’s peculiarity is the rapid appreciation of property prices, which makes buying a home a profitable investment.

To apply for a visa, you must be approved by the Dubai Land Department and go through the GDRFA registration process.

How to apply for a residence permit in the UAE for a family when buying a property

A depositor who has obtained a UAE residence permit when buying a property can legalise the residence of close relatives. This is relevant for standard short-term visas and for the Golden Visa.

Basic Conditions:

• Ability to sponsor spouse, children, parents;
• The applicant’s income must meet the requirements to support a family;
• is granted resident status for the same period of time as that of the principal visa holder.

This option is particularly popular with entrepreneurs who consider the Emirates as a place of permanent residence.

Which properties to choose to obtain a residence permit in the UAE

The choice of investment object for UAE residence permit when buying a property depends on the purpose of investment: personal residence, renting or commercial use. It is important to take into account liquidity, potential growth in value and convenience of residency registration.

Apartments in modern residential neighbourhoods

Offer developed infrastructure, convenient layouts and high rental demand.

Best neighbourhoods:

1. Dubai Marina – premium high-rises, sea views, yacht clubs.
2. Downtown Dubai is the city centre, close to the Burj Khalifa.
3. Business Bay – developed business infrastructure, office centres.

The minimum cost is 750,000 AED ($204,000).

Villas in gated communities

The choice for family living and long term investment. The villas provide space, comfort and privacy.

Popular neighbourhoods:

1. Palm Jumeirah – villas with private beaches.
2. Arabian Ranches is a neighbourhood for families with international schools.
3. Emirates Hills – luxury mansions overlooking golf courses.

For UAE Gold Visa, the investment amount should be from AED 2,000,000 ($545,000).

Commercial property

Investing in offices, retail space and hotel property yields returns of 10-12% per annum.

Prospective sites:

1. Offices in Business Bay and DIFC – sought after by international companies.
2. Shopping areas in Dubai Mall, Mall of the Emirates – high footfall.
3. Hotel apartments in Palm Jumeirah are a steady stream of tenants.

Conclusion

Registration of residence permit in the UAE when buying real estate is a reliable way to obtain residency status in a country with a developed economy and favourable offers for investors. Three main schemes for obtaining residency allow you to choose the most suitable option, taking into account your budget and goals.

Investing in UAE property is still a stable and reliable investment. Moreover, it not only ensures the right to live, but also guarantees a stable income. Given the rapid development of the region, such investments are becoming even more attractive to investors.

The Emirates is no longer associated only with luxury holidays and skyscrapers. The country is impressing with its pace of development and large-scale projects, rapidly establishing itself as one of the world’s most dynamic business hubs. The unique combination of high living comfort, efficient infrastructure and ambitious government policy creates an exceptional environment for entrepreneurs. What exactly are the practical advantages of starting and developing a business in the UAE that make it so attractive? Let’s understand the specific advantages of the jurisdiction.

Dubai: a business oasis in the desert

A city where skyscrapers compete for attention not with nature, but with investment portfolios. The pros of doing business in the Emirates take on density right here.

Dubai provides:

• instant access to markets in Asia, Europe, Africa;
• developed logistics through Jebel Ali, the largest port in the Middle East;
• business infrastructure network: from co-working centres to technology incubators.

Business in Dubai is not limited to luxury – it lives in concrete terms. Export-oriented companies here earn an average of 17 per cent more than in comparable regions, thanks to low costs and the absence of hidden taxes.

Whether to open a business in the UAE: pros and cons

The cost of mistakes in choosing a jurisdiction directly affects the viability of a company. In the Emirates, businesses do not make promises, but concrete processes – fast, regulated and result-oriented. Here, comfort is not promised – it is created normatively. Business in the UAE demonstrates its advantages through real mechanisms, not theoretical conveniences:

1. Startup speed. Free Zone FZ-LLC form is registered in 48 hours. Licence – another 24 hours.
2. Transparent tax environment. No income tax up to 375,000 AED (≈100,000 USD), 9% rate – above this amount.
3. Flexibility of Free Zones. More than 45 free economic zones allow you to choose the conditions by type of activity, visa quota, access to foreign markets.

Example: the DMCC is an area that serves over 22,000 companies specialising in trading, technology, cryptocurrency. This is where 200+ new businesses are registered per month.

Minuses of doing business in the UAE

Behind the facade of tax incentives and business forums are details that are easy to miss. The mistaken perception of the Emirates as a universal comfort zone quickly collides with reality. Entrepreneurship in the Emirates is affirming, but only if you are prepared to consider the other side of the coin.

The minuses of business in the UAE affect:

• high cost of business (opening a company in DMCC – from 11,000 USD);
• The need to consider the culture of negotiation, especially in B2B (high context, preference for personal contacts);
• difficult adaptation to the climate – in summer temperatures reach 50°C, which increases energy costs and reduces the effectiveness of outdoor advertising.

The conditions are not critical, but require adaptation and calculation. Ignoring these factors increases risks and inhibits development, especially in the first 12 months of launch.

Visa, staff and communications

UAE visa for a business owner is issued for up to 10 years (Golden Visa). Personnel require separate sponsorship and quotas. Managing a team requires precise calculation – mistakes are costly.

Employees from the Philippines, India, Egypt and Lebanon form the core of recruitment. The average salary of an office specialist – from 2500 AED (≈680 USD), manager – from 10 000 AED.

The language of communication is English. Arabic is symbolic, important in legal documents and negotiations with government agencies.

Marketing and profit without illusions

Without advertising, commercial projects in the Emirates are sinking in the golden sand. In a highly competitive environment, the one who invests in digital wins.

Advertising in Google and Meta gives up to 6x ROI if properly adjusted to local specifics. For the offline segment, billboards in areas with a high density of expats are effective.

Business profits in property, logistics and e-commerce can reach 25-40% per annum, especially when entering the Saudi and Qatari markets through exports to the United Arab Emirates.

Exports to UAE

The pros of doing business in the UAE are enhanced by the export factor. Demand for quality products, technology and services continues to grow.

Exports to the UAE are showing momentum, with foreign trade exceeding AED 1.1 trillion in 2023. The main destinations are food products, construction materials, IT solutions and pharmaceuticals.

Entering the GCC market opens the door for exporters to the GCC, a region with a total GDP of over $2 trillion. Registering a company within the country facilitates certification of goods and participation in tenders.

Market and revenue: what a growth strategy works with

The pros of business in the UAE are revealed through income and flexibility. The average income of small companies in logistics is 1.2-1.5 million AED per year, and in retail – 800,000 AED.

The market is not oversaturated but requires adaptation to local preferences. Template import of ideas does not work – adaptation wins here.

Survival formula: localised product + digital strategy + good PR packaging. Case: a cosmetics brand from South Korea entered the UAE market in 2022, increasing sales by 300% through a TikTok campaign and collaboration with local Influencers.

Evaluate the pros of doing business in UAE and make a decision!

As our review shows, the Emirates offers significant advantages for entrepreneurs: fast company registration in free zones (e.g. FZ-LLC in a matter of days), a transparent tax environment with a threshold for zero corporate tax rate (up to ~100,000 USD), and Dubai’s strategic position with access to markets in Asia, Europe and Africa, backed by excellent logistics via Jebel Ali port. Opportunities for growth through exports to GCC countries and high profit potential in sought-after niches such as logistics, real estate or e-commerce are real here, especially with a sound digital marketing strategy.

However, it is important to approach the decision without illusions. Consider significant start-up costs (opening a company in popular areas like DMCC requires significant investment), high competition requiring product customisation and sophisticated marketing, and the need to understand local business practices and adapt to climatic conditions that affect operating costs.