UAE reacts to competition from Turkey

The United Arab Emirates is trying to maintain its position as an important destination for international investors. At the same time, competition is growing from countries such as Turkey, which also want to make a name for themselves as a regional location for capital, skilled workers and companies. The recent tensions in the Middle East have highlighted the vulnerability of the Gulf region. Air traffic was affected at times, supply chains were under pressure and some foreign employees temporarily considered alternatives. Restrictions on shipping through the Strait of Hormuz also impacted trade, energy exports and transportation routes. Against this backdrop, the region is increasingly discussing whether Turkey could become more attractive to international investors and skilled workers. Ankara is trying to position itself as a safe and well-connected location between Europe, Asia and the Middle East. This includes new tax incentives and programs for foreign investors, which are to be presented by Turkish Finance Minister Mehmet Şimşek, among others. Dubai relaxes visa rules for real estate investors The UAE is now responding with its own measures. Dubai in particular has adjusted the conditions for residence visas based on real estate investments. The emirate has lifted the previous minimum limit of 750,000 dirhams for sole owners. At the same time, a new lower limit of 400,000 dirhams per share was introduced for jointly held properties. This facilitates access to the two-year residence permit linked to property ownership. This visa category was introduced in 2019 to attract foreign capital without investors needing a local sponsor. For properties financed by mortgages or installment payments, buyers must continue to present a clearance certificate from the bank or developer. For completed properties, at least 50 percent of the property value must be paid. Eligible investors can also sponsor family members as part of the residence permit. Real estate market remains strong The adjustment comes at a time when Dubai's real estate market continues to show solid figures. In the first quarter of 2026, transactions reached a volume of 138.7 billion dirhams, equivalent to around 37.45 billion US dollars. This corresponds to an increase in value of 21.2 percent compared to the previous year. The number of transactions rose by 4.35 percent. The average transaction size also increased. In January, it was around 3.3 million dirhams. This indicates greater participation by institutional investors and wealthy private individuals. In addition to visa rules, the UAE is also focusing on tax incentives. At the end of March, the government announced the first phase of a program to promote research and development. Companies can receive tax credits of up to 50 percent on eligible R&D expenditure, limited to 5 million dirhams. Turkey is trying to position itself more strongly as an alternative for international investors. However, the UAE still has considerable advantages: an established financial and real estate infrastructure, international networks, a high quality of life and many years of experience in competing for global capital. Competition between Dubai and Istanbul is therefore likely to intensify further. This will create more choice for investors - and pressure on both locations to offer better legal, tax and economic conditions. The post UAE reacts to competition from Turkey appeared first on ostwirtschaft.de.