Buying and Investing in Dubai

The Place

Country 2nd largest of the seven United Arab Emirates (UAE)
Time Zone GMT + 4 (+3 for British Summer Time)
Area Dubai approx. 2,500 sq miles (twice the size of Luxembourg)
UAE approx. 32,000 sq miles

The People

Population Approx. 1.4 million: 80% expatriate; 100,000 British
Languages Arabic and English are the main languages
Religion Sunni Muslim country, most major faiths represented, Anglican and Catholic church here since the 1970s

The Property

Buying Possible since 2002 on a freehold basis, certain areas have been master developed and designated by the Government for foreign ownership. A law has since been announced confirming this in 2006
Residence Completed properties in freehold projects entitles owners to apply for residents visas without having sponsors/employers, as long as they own the property. A residents permit is necessary for opening bank accounts, enrolling at schools, owning a car, obtaining a local driving licence and it is otherwise only available through employment. Foreigners can seldom obtain UAE citizenship
Costs Expect around 2% transfer fees and 2% agency fees. All villas and apartments have annual service charges as in the UK
Renting Usually on annual contract with rent payable either 12 months in advance or via 2 or 3 cheques over the year
Mortgaging Usually around 7 - 8% interest, up to 70% of the current value (or the developer’s original price if not yet completed) over about 15 years

Getting There

From London 6 hour flight
Direct Emirates flies from the UK 11 times a day
Indirect Etihad flies daily to Abu Dhabi, approx. 1 hour drive away
Visa entry British citizens get 60 days free on each arrival, renewable on re-entry
EU, North America, Australia get 30 days on arrival
Israeli passports or passports with Israeli stamps not permitted
Your passport should be valid for 6 months beyond date of entry

The Money

Currency Dirham (AED or Dh) (pegged at Dh 3.67 to the
US dollar)
Exchange rate Exchange rates fluctuate regularly, currently approx. £1 = Dh 7 as at April 2007, updates available via www.xe.com
Credit cards All widely accepted, although cash more popular than in Europe

When to go

Climate Climate Lows of 10°C in winter, highs of 45°C in summer (particularly June - September)
Rainfall scarce in winter, high humidity in summer (air - conditioning in all buildings and cars)
Working hours Working hours Shops – 7 days 10pm or later, some closed on Friday mornings
Offices – Friday and Saturday is the Arabic weekend

Getting Around

Driving Driving On the right and overtake on the left, as in Europe. A UK driving licence is exchangeable for a UAE driving licence (residents only)
Petrol Unleaded 20p a litre
Parking Covered, valet and off-street parking freely available
Meters 30p an hour in some areas between 8am – 1pm and 4am – 9pm
Parking is free on Fridays
Car hire Available with UK licence or International Driving Permit
Starting approx. £115 a week
Taxis
Metered and available at hotel/mall ranks, on the street or on call
Transport Limited public transport but a metro is under construction and the bus network is being expanded in the meantime
Telephone IDD 00 971 - followed by area code and number
Landline to landline free within each emirate, mobiles equivalent 5p/minute
Calling UK around 34p/minute peak

Expatriate not tourist?

Health Private health insurance necessary
Several major hospitals with direct settlement from some UK insurance companies
Education High pass rates in British National Curriculum schools up to age 18. International/European Baccalaureate and S.A.T. also available
Fees similar to UK independent schools

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