China boasts some of the wealthiest people on the planet, most of whose personal fortunes can dwarf treasuries of medium-sized countries, and the growing population of upper-middle-class Chinese now also has their eyes set on business formation in UAE.
More Chinese investors are focusing on Dubai, not just for home but for offices and other investments too. They are interested in the UAE not just because the yields are attractive but also the political stability it has maintained.
Recently there have been more Chinese investors; Chinese companies, and more trade licenses from Chinese firms opening in the UAE.
Recognition Of Dubai Among Chinese Investors
- Emaar has begun working on two offices in Beijing and Shanghai. It will be used to present the UAE as an investment destination, with emphasis on property, educational opportunities and healthcare
- Since UAE have shown support to China’s Belt and Road initiative, Chinese investors are now more aware of Dubai and the opportunities available here
- Real estate and properties is the major market where the Chinese are investing. From relatively negligible levels just a couple of years back, Chinese investors quickly rose to become among the top four nationalities who invested in Dubai real estate last year, according to the Dubai Land Department
Some Of The Major Impacts Affecting The China-UAE Relationship
China’s Silk Road Project
China and UAE signed a memorandum of understanding (MOU) for cooperation on the Silk Road initiative and the 21st Maritime Silk road initiative to initiate to boost investment and trade. Records state that 22% of Arab Chinese trade passes through UAE and 30% of China’s exports to the Arab world go from the UAE. All these reasons make UAE a preferred location and Dubai being the commercial hub has more number of new setups.
The Road And Belt Initiative
It has been very positive because it’s all over the news in China. When it started one and a half years ago a lot of Chinese people didn’t know about Dubai and many hadn’t traveled outside the country. Only a small group of investors who were exposed to the International market were aware of the investments in Dubai. Because of the initiative, the country is now aware of Dubai and investors are looking at opportunities here. This is still a phase where a lot of Chinese are just traveling for a visit, go back with positive information and then plan investments into the city.
Investment In The UAE Real Estate Sector
As the real estate prices in China are fairly expensive, UAE’s Real estate market is more affordable and convenient. The freehold ownership, high rental yields, affordability and tax-free investment makes real estate options appealing. Emaar has begun the design and fit-out of two offices in Beijing and Shanghai, which will be used to showcase the UAE as an investment destination, with a focus on property, educational opportunities and healthcare.
Visa Benefits For Chinese Investors
As per the recent research the Chinese visitor’s numbers have increased and China was the Emirates fourth biggest market for tourists. The two countries introduced Visa on arrival in 2017 and 2018. Chinese nationals can now get a 30 days visit visa on arrival, free of charge and renewable for similar period.
This blog is written by Ms. Nirmala, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you are a Chinese investor and have any query related to business setup in Dubai or anywhere across UAE, then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com.