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

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.

The Gulf state is not a monolith, but six flavours of the same dish and a seventh with its own recipe. One emirate builds cities, another builds silence. The choice is not a tourist quest but a strategic decision. The question of which emirate of the UAE is better to live in is not about beaches, but about the balance between income and rhythm, prices and comfort.

Dubai: a city for those who don’t slow down

Dubai doesn’t suggest – it dictates. It accepts the challenge, not reasoning. The city grew out of the desert like a start-up on steroids: skyscrapers, driverless transport, beaches like a picture from a cream advert.

Life in Dubai obeys the principle of “expensive but worth it”. The average rental rate for a one-bedroom in the centre is AED 7,000-9,000 per month. The Downtown, Marina, JVC districts are holding up demand, and office rentals in Business Bay have increased by 18% over the year. The UAE property market shows the most activity here.

For foreign professionals, the UAE is first and foremost Dubai. Microsoft, Amazon, Oracle corporations base their MENA offices here. The city attracts IT, marketing and architecture specialists. Moving to the country is most often due to work and business.

In which emirate of the UAE it is better to live for career growth and maximum access to infrastructure – Dubai gives the most obvious answer.

Abu Dhabi: less noise, more sense

Abu Dhabi is an equally powerful player, but a quieter speaker. If Dubai is the glossy cover, Abu Dhabi is the corporate report: serious, steady, reliable. Average income per capita is higher, infrastructure less chaotic.

Moving to the UAE with a family more often involves choosing the capital. Here are large schools, universities, hospitals with JCI-accreditation. In which emirate of the UAE is better to live for a quiet but prosperous life – Abu Dhabi confidently offers arguments.

Rental prices are 15-20% lower than in Dubai, while the quality of housing is often higher. Khalifa City and Al Reem Island remain top locations. And the labour market is concentrated around energy, public sector, medicine and education.

Sharjah: quieter you drive, longer you pay.

Sharjah remains a compromise. The rent is 1.5-2 times lower than in Dubai, but the office is an hour away by road. But taxes are still zero. In what region of the UAE is better to live with a limited budget, but close to the metropolis – Sharjah often wins on the price/location ratio.

The city is actively developing: new neighbourhoods like Aljada offer business class housing, but without the Dubai mark-up. Property prices: from AED 500,000 for a studio in a new building. The cost of living remains the most affordable in the central part of the country.

Ras Al Khaimah: investing in the horizon

Which UAE emirate is best to live in with an eye on the future – investors are increasingly pointing to Ras Al Khaimah. The region has built its business model on long-term attractiveness. Industry, hotels and ports are being developed here.

The UAE property market offers the most favourable conditions for investors here: taxation is minimal, land costs are low, and there is little competition. The segment of resort life attracts those who seek silence and nature. The Hajar Mountains are within an hour’s drive.

Expat life in this emirate is still limited. But a community of Europeans and Russian-speaking professionals has already formed. Another point has been added to the cities for relocation, which is steadily growing.

Fujairah: Back East

Fujairah, the only emirate on the Gulf of Oman, plays a special role. The port, the mountains, the strategic logistics. Life here is like no other. Reviews note tranquillity, stability and low costs.

Real estate: from 300,000 dirhams for one-bedroom flats in residential complexes near the coast. The cost of living is half that of Dubai, but the number of career and leisure options is minimal. Which UAE emirate is best to live in for remote work or retirement – Fujairah wins out over the rest.

What is important to consider when choosing an emirate

To choose which UAE emirate is best to live in, you need to compare key parameters.

A list to help you compare:

1. Cost of living: from $1,500 in Sharjah to $3,500 in Dubai (per person with rent).
2. Work opportunities: maximum in Dubai and Abu Dhabi; minimum in Fujairah.
3. Developed neighbourhoods: premium in Dubai Hills and Saadiyat Island; middle class in Al Majaz (Sharjah).
4. Taxes: business income tax – from 2023 9% (on revenue of AED 375,000 or more), no personal income tax in all regions.
5. Housing market: from AED 3,000 for a studio in Sharjah to AED 12,000 in Dubai (per month).
6. Infrastructure: best in Abu Dhabi and Dubai, average in Sharjah, limited in Fujairah.
7. Feedback: maximum satisfaction with comfort and safety – in Abu Dhabi; speed of life – in Dubai.

Choosing a particular emirate depends directly on your priorities – whether it’s your career, level of spending or the pursuit of a relaxed life. Each region in the country offers a special combination of conditions, creating a different style of everyday life.

How life is changing for expats in the UAE

Expat life in the UAE doesn’t look the same in every region. The differences are not only in prices and climate, but also in mentality, infrastructure and access to services. Which emirate is better to live in for a comfortable adaptation depends on expectations and habits.

Dubai provides the maximum multicultural environment. There are British, American and Indian schools, dozens of language centres, and a variety of leisure activities. Annual population growth at the expense of foreigners is about 4%. The level of comfort is comparable with Toronto and Singapore.

In Abu Dhabi, it is easier to integrate into the professional environment: many companies themselves accompany expats, issue residence permits, and rent accommodation for a year in advance.

Sharjah offers a quiet religious environment – alcohol is prohibited, nightlife is absent, but education is 30 per cent cheaper.

UAE cities to relocate to: who’s winning

Which UAE emirate is best to live in for specific tasks reflects not only the capital and metropolis. Different cities form their own advantages.

1. Al Ain (Abu Dhabi) – optimal for families with children, developed medical services, schools with rating above average.
2. Ajman – housing is cheaper than Sharjah, but infrastructure is inferior, which affects convenience.
3. Dibba (Fujairah) – interesting for remoters and nature lovers, the climate is milder, seasonal congestion is minimal.

Reviews confirm: with the right strategy, moving to the Emirates leads to an increase in income, comfort level and lower tax burden.

Where it is more profitable to own and rent

The country’s property market has become the core of the economy, with construction and housing transactions accounting for more than 30% of GDP. Dubai is leading the way: 2024 brought price growth of 17% in the premium sector and 11% in the average. Which UAE emirate is best to live in if the goal is to invest in property, Dubai still offers the best liquid properties.

Abu Dhabi is inferior in dynamics, but compensates with reliability: less price fluctuations, more long-term tenants.

Sharjah and Ras al-Khaimah are developing separate residential clusters, where investments per square metre are 25-30% cheaper, but payback periods are longer.

From 2023 there is a flat tax for companies with profits from AED 375,000 – 9%, individuals are not taxed. VAT remains at 5% nationwide. This tax climate attracts businessmen and investors who are ready to combine the comfort of living with commercial benefits.

Which UAE emirate is the best to live in: conclusions

Which UAE emirate is best to live in depends on your goals. Dubai will suit those who are building a career and are ready to pay for the pace. Abu Dhabi is the choice for stable decisions. Sharjah will balance budget and quality. Ras al-Khaimah is a springboard for investment. Fujairah is a rare example of seclusion.