The world is going through difficult times. Global economic crises have taken a profound toll on the overall financial health of the world. Only a few destinations could be declared promising for investing the hard-earned money.
At the backdrop of this gloomy outlook, there is one prime destination that still values your investment. This destination has the potential to milk the maximum profits for your investment.
Yes, we are talking about the United Arab Emirates.
Why the UAE?
Besides having a large economy, the UAE is constantly seeking to diversify its economy. Unlike other Middle Eastern countries, the UAE no longer relies on petroleum as its economy’s sole jugular vein. The diversification ported that the economy of the UAE is on the go.
Investor’s Favourite
Over 85% of the United Arab Emirates economy is dependent on petroleum proceeds. Nonetheless, in 2018, the UAE ranked 27th regarding its potential to garnish foreign direct investment (FDI).
More and more investment is dripping in, and this steady flow also sketches a prosperous picture for the future.
The piling up of FDI reserves emboldens the investors’ trust. These reserves also help investors execute business in a favorable ambiance.
Regime Change brought forth positive changes
The regime change in the UAE has also brought several changes in the law of the land. The once-held image of the UAE as a rogue and banal state has aptly been busted. Human rights are no longer volatile. The business environment is friendly, and the government introduces flexible incentives for the economy to boost.
UAE is a Prominent Tourist Hub
In the same vein, the razzle-dazzle of the UAE is an alluring note. It has become a prominent tourist hub. People around the globe are cherry-picking the UAE as their favorite business avenue and holiday destination. This steady flow from different corners of the world notches up the chances of the UAE being the next global tiger.
So, it is all set that the UAE will be the most comfortable option for putting in your investment. That said, it’s time to explore the potential industries that could double your profits by leaps and bounds.
Let’s start from the top five.
Real Estate Market
Thanks to gigantic development projects, the real estate market of the UAE is likely to expand up to 100% in the near future. According to the market forecast, the UAE real estate market will grow by more than 9% for the projected forecast period of 2022-2027.
The pandemic severely hit a few sectors of the UAE. Nonetheless, the recovery mode has created ample room to ride on the gravy train. This is all possible owing to the synergic economic reforms and overarching vaccination drive.
We can say that the real estate sector of the UAE has turned a new page. People are relocating to large homes with added outdoor amenities at the backdrop of the work-from-home phenomenon.
Government-sponsored measures such as 10-year golden visas and residency permits are also upbeat for real estate market sentiments.
Going by the recent report released by Dubai Land Department, the average house price in Dubai is likely to rise by 2.5%, contrasting with the 1.1% projection amid the throes of pandemics. In this scenario, if you invest in a 3 bedroom sustainable villa near Sharjah, you can expect great results.
Real estate is the new gold of the UAE. Whether you invest in major cities, sustainable cities or suburbs, you are likely to get the maximum returns of the monies you put in on landed houses, apartments, or commercial buildings. Ride the Middle Eastern gravy train at the earliest.
Construction Industry
The United Arab Emirates is in a transformation phase from dotted sandy shanty towns to glittery cities. This construction all around is pushing the transformation up to new heights.
According to an optimistic estimate, the UAE construction market will likely tick into the whopping 153 billion by the end of 2027.
Surprisingly, this is perhaps the only sector of the UAE that aptly absorbed the shocks and aftershocks of Covid-19.
In the same vein, the government of the UAE is paying particular attention to the construction sector as it plays a vital role in upliftment. Construction is also the cornerstone of development.
Of late, several construction projects are in the pipeline in the UAE. These projects run through various dimensions, including geotechnical (underground) structures, superstructures, commercial, residential, as well as generation and transmission-related infrastructure.
The best thing you can enjoy by investing in the construction sector of the UAE is patronage by the state. You work under the auspices of the UAE government, and several subsidies can be solicited in good faith.
The UAE has also embraced the Public-Private Partnership or PPP model, which welcomes the intake from the private sector. The $14 billion-sponsored ‘Ghadan 21’ accelerator program is a case in point.
Considering all the dynamics mentioned above and over 3,200 active construction projects, the UAE is a prime destination to invest in the construction industry. This sector has immense potential as well as almost zero saturation.
E-Commerce Solutions
Another excellent option to invest in the UAE is the e-commerce industry. “The total size of the UAE’s e-commerce industry is above $5bn, which is likely to cross the $8bn benchmark by the end of 2025”, EZDubai – an e-commerce hub located in Dubai, quotes.
Almost 75% of the UAE citizens have adopted partial or total online shopping modes. This lifestyle change is a bit too viable considering the humid terrain and rough hot weather of the UAE.
The coverage of e-commerce is also impressive, ranging from food and beverages to sophisticated media products.
Swift internet penetration rates and rising GDP per capita are the underlying reasons e-commerce is the next business beast in the UAE.
Moreover, the pandemic proved a blessing in disguise for the UAE’s e-commerce solutions. According to an online report by Sitecore, 89% of the UAE customers became digital converts during the pandemic.
The government of the UAE has also sensed the potential of e-commerce. Besides Dubai, another e-commerce duty-free zone named ‘Dubai CommerCity’ (DCC) has been established in Umm Ramool.
Technology is the future, and investing in the e-commerce solutions of the UAE is a recommended as well as viable option for investors and entrepreneurs. This sector will balloon up faster than your imagination. Have a try!
Hospitality Sector
The UAE proudly boasts about being the finest destination for tourism and travel, ultimately contributing to its hospitality sector. High-quality international chains, resorts, inns, and hotels are opening daily. According to some estimates, the hospitality sector alone represents a 4.8% contribution to the GDP.
Thanks to high-quality services, tourists’ stay has also stretched from 2.4 nights to 2.8 nights. Sensing the prosperous vibes, several businesses and entrepreneurs are rushing to the hospitality market of the UAE.
Celebration is the national culture of the UAE. Each year has multiple celebrations, starting from the new year and ending with milestone-based or national-cum-international events.
This means there is no shortage of tourists in the UAE region. To boot, the multi-cultural and strategic features of the UAE pave a rosy path for a thriving hospitality sector of the UAE.
Suppose you possess a golden heart deep into your bosom, have a handsome investment in your coffers, and also have a burning desire to enthral in the rich culture of the UAE. In that case, the hospitality sector is waiting for you. Join now!
Consultancy Services
The Consultancy sector of the UAE is roaring back. It has rebounded by 20% from just a year ago. No matter how hard this sector experienced during the pandemic, it will likely make up for the losses thanks to its lucrative potential once it attains the zenith of the hustle and bustle.
With significant gains, the $580m UAE consultancy market will expand by 15%.
As development is on the go, the consultancy walks side by side. The UAE urgently needs competent consultancy forms to entertain the needs of manufacturing, telecom, energy, media, technology, et al.
Better consultancy can do marvels, and the UAE government believes in it. The UAE supports consultancy firms through a range of incentives and subsidies.
If you possess the stamina to erect a sophisticated consultancy firm, this is the high time. There are multiple genres; you could pick any of them according to your predisposition.
Final Verdict
Our veterans have rolled out all the top five industries for investment in the UAE. All the above-listed sectors have immense potential for absorption, growth, and profits.
The only thing you need to do is to cherry-pick the right choice and start milking the UAE milch cow.
