Dubai to remain safe haven

Non-oil sector accounts for 96 per cent of GDP as tourism, transport, trade, logistics, retail, and construction powering Dubai growth.

Dubai will continue to thrive as one of the world's most sought-after safe havens for high-net worth families and their investments on the back of its growing status as a world-leading financial services centre and tourism hot spot, according to latest forecasts and studies.
A report by Deloitte said as oil prices fall and neighbouring economies suffer, Dubai has made great strides in diversifying away from reliance on petrochemicals.
"Tourism, investment and inward expatriates are widely encouraged, both from other GCC countries as well as further afield. The cosmopolitan and highly skilled workforce serves to further enhance the attractiveness of Dubai as a destination for tourism, investment and family offices, which will continue for some time to come," the report said.
Analysts at Deloitte observed that "as local families look to the future, a successful and entrepreneurial cohort of 'next generation' family business owners will be instrumental in the continued advancement of the economy."
As a safe haven for individuals from the rest of the GCC and other Middle Eastern countries, while providing an alternative jurisdiction for the world's wealthy high-net worth families and their investments, Dubai provides everything an ultra-wealthy investor may desire, including year-round sunshine, world-class shopping facilities, international sporting events and cosmopolitan lifestyle, analysts said.
According to Wealth-X and Sotheby's International Realty, ultra high-net-worth individuals (HNWIs) are spending millions of dirhams on Dubai's luxury properties because it offers excellent value for their money.
A survey by Emirates Investment Bank shows HNWIs in the UAE (89 per cent), Qatar (83 per cent) and Oman (75 per cent) are the most optimistic among the GCC countries about the prospects of their economies.
A study by a leading property consultant shows that Dubai has become the hot-spot for world's wealthy property investors as the second most attractive real estate investment market in the world for high net-worth individuals after London.
As economists point out, Dubai thrives on its economic diversification. Non-oil sector accounts for 96 per cent of GDP as tourism, transport, trade, logistics, retail, and construction powering Dubai growth.
One of the main attractions of Dubai as an investment destination is the Dubai International Financial Centre (DIFC), which is an early proponent of the concept of the Single Family Office (SFO), and the first jurisdiction in the Middle East to define a family office in legal terms, according to Deloitte report.
"Legislation relating to SFOs which recognises the unique requirements of family offices and their limited public liability has been in place since 2008. Based in the DIFC means family offices can benefit from the robust legal and regulatory framework, and highly qualified and experienced professionals," said the report titled "Introducing Dubai: A destination for private and corporate wealth." The DIFC rule of law has a common law framework; it also has its own courts as well as a Wills & Probate Registry for non-Muslims. "The DIFC has strict anti-money laundering rules to ensure that it is a real contender on the international financial scene," said Walid Chiniara, Partner and Deloitte Private Leader in the Middle East.
"Efforts are being made in government to amend and update some of the other commercial and private legislation in the rest of the country, so as to attract more foreign investment into the UAE, which it is hoped will increase exponentially in the run-up to Dubai's hosting of Expo in 2020," he added.
"As host city of Expo 2020, Dubai anticipates it will attract 25 million visitors, the vast majority of whom will, unusually for this sort of event, be from overseas," said Chiniara.
- issacjohn@khaleejtimes.com

• Dubai

Issac John

issacjohn@khaleejtimes.com