June 18, 2024

UAE Income Investment: Trends and Policies


Financial Independence is of the utmost importance in individuals’ lives. Accomplishing financial goals has become crucial for anybody in today’s  scenario. To become financially independent in the UAE, one can invest money, but it requires awareness for investment. Income from investments such as real estate and stock sales are the major sources among the non-oil sectors in the UAE. The UAE’s real estate industry, or property investment market, is rapidly expanding, and it is a critical component of the UAE’s economy. The property investment market in the UAE incorporates office buildings, residential houses, hotels and retail sectors.

The market scenario

The commercial real estate industry deserves attention since it has been impacted by changes in the economy. In contrast, Abu Dhabi’s figures were 1.01% and 1.05%, respectively. Demand for office space has remained high, and grade A rentals in Dubai and Abu Dhabi both saw increases of 4% and 7%, respectively.

Statistics indicate that productivity has been slowing down in Dubai and Abu Dhabi from 2014 to 2015, growing just by 1.02% in Dubai and 1,004 in Abu Dhabi. Residential supply is also extremely crucial. In 2015, rent performance was significantly better than sales performance. Prices are also important to note; each square metre costs about 16,000 AED. Similarly, two-bedroom apartments are now 4% more expensive to rent.

Noteworthy is the retail supply, which, according to statistics, has been growing significantly in the first city and has 3,107 sq.m. of gross leasable area (GLA) available. The information that is currently available suggests that rents have stayed consistent, and most businesses have employed strategies like discounting to remain profitable.

Recent real estate developments in the UAE, like the increase in demand for office spaces, and the rising trend in rentals, indicate the optimism of market attitudes. Other significant events include the UAE cabinet’s acceptance of a new housing strategy and Dubai’s introduction of title deeds for fractional property ownership.

The UAE is known for its larger-than-life real estate developments and the property investment industry in the UAE is massive. Behind this massive industry, there are innumerable property dealers who have contributed to making the industry reach a significant level. One such powerhouse is Capital 3PM.

Industry Elements

Capital 3PM offers secured, asset-backed fixed income concepts to institutions, high-net-worth individuals, and sophisticated investors. The company provides its clients with a suite of fixed-income loan notes. It has developed a distribution network that incorporates both the retail and institutional space. The capital raising of the company includes both debt and equity. Capital 3PM, broadly the UAE and UK’s most prolific asset managers, advises on raising capital in the overseas capital markets. Moreover, it offers a suite of non-market affiliated opportunities and Fixed Income to Private Clients. The company has made investments in Dubai in 2003, student housing in the UK in 2008, and storage and distribution for Amazon in 2013. With a strict due diligence process, Capital 3PM has only approved 4 of the over 1,000 goods that make up our present array of offerings.

Company products have a 100% track record of paying out both the coupon and the principle at maturity. Capital 3PM also secured few exceptional awards from leading business-tech magazines such as International Business Magazine. The magazine awarded Capital 3PM with the ‘Best Ethical Fixed Income Investment in the UAE for 2022’. The company is worthy of being entitled so as it’s always on the urge to aid the investors with the best investments. For the last 18 years, the company has been catering to and supporting its clients with the best equity raising mandates. The company has a track record of 100% success in delivering the clients’ fixed capital raising objectives. The company always perceives potential opportunities for fixed income investors looking for income. The fixed income products of the company are designed with one core objective in mind: to preserve and develop investors’ capital and security.

Future Prospects of the Market

During the projection period, 2022–2027, the residential real estate market in the UAE is anticipated to grow at a CAGR of more than 8%. Experts predict that residential real estate prices in the UAE will continue to rise in 2022, supported by positive economic reforms. A project launched in Dubai will boost the market. The city is humming with ongoing new construction and is prepared for the expanding population, whether they be apartments or villas. In 2022 and the years to come, a tremendous number of new apartment complexes, villas, and townhouses will be built. All of them will be in accordance with Sheikh Mohammed bin Rashid’s 2040 Urban Master Plan, which intends to reshape the emirate and make it more sustainable and connected.

Blog By Tasleem Majumder



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