In any business venture investors obviously expect a high return of investment (ROI) and in order to achieve this, identification of the political, economical, and currency environments of the proposed site of investment should first be made. It is only proper for foreign investors to expect a stable government with a good economy and stable currency promoting a high potential for growth from the place where they are expected to invest in giving rise to a high rate of ROI.
This paper will study the foreign investment opportunities available in Dubai, focusing mainly on the real estate environment and Dubai’s banking industry. The paper will also provide a brief background on the country’s geography, its political environment (see Appendix 1), along with its business and economic stratum. For further understanding, economic concepts like rate of return, opportunity costs and risks including regulations pertaining to foreign investments in the emirate will also be included in the paper.
However, as was previously mentioned the paper will focus mainly on the real estate industry and its profit potential for foreign investors. This paper will also discuss Dubai’s investment and attempt to identify market imperfections, liquidity, risks involved and corporate lending and project financing so that an understanding of the market and market process will occur and realization of the impact and influence of such factors in the local industry of Dubai.
This discussion will be addressed through a question that will identify business activities in Dubai. It can be noted that the real property industry within Dubai’s region is already at a highly developed stage, and as such it may have lured investors away from Dubai. It is a fact that many Dubai citizens are already full time investors in their own right and are satisfied with their coverage to UAE property, regardless many foreign finances for real property development have revealed prominent attention in Dubai.
These investment resources are fond of lengthy term views and are engrossed with the vast natural wealth available in Dubai and its reputation for political and economic solidity. It may be noted that from an international standpoint that land assets in one of the world’s wealthiest city is underpriced and it will only be a matter time when that low price will be realized and the price would shoot up in order to adapt to the competitive market