Dubai Investment Property

If you are thinking about opening up and starting a business in Dubai there are some things you will want to take into consideration before you take the plunge and try to move to the United Arab Emirates (UAE) to work on your new business venture.

Business in Dubai

If you want to start a business in Dubai instead of looking for job in Dubai, you should know that the process of doing just that is rather complex and risky compare to careers in Dubai. It is imperative that you have some local knowledge from the start of things through job opportunity in Dubai. It is also a good idea to have an experienced local lawyer that before you jump in too deep with your business idea, you should gather as much local knowledge of the region as possible. You should especially look into the industry that you are interested in working in with your business. You will need to develop a viable business plan for your business that includes forecasting and a survey of current market conditions as many expats in Dubai having difficulty find job in Dubai.

You should already have investors in place for your venture if possible. The law states that you are required to have a local partner in Dubai that holds the majority interest in the company. This means that the partner can control the business and it can be an individual or a company. The partner does not have to contribute financially to the start up business. You will need to register your business as well. Once it is registered you will have to show proof of sufficient financial resources to invest to the Ministry of Commerce. The amount you need to have tends to vary but it somewhere between $10,000 and $50,000. This amount is used as a guarantee against liabilities; however you are allowed to withdraw it after you have shown that you have it.

New business ventures are actually encourage by the local government. Export and manufacturing are the industries that are offered the most support by the government.

Alternative Way For Starting Business in Dubai

As an alternative to starting a business you can also buy a business that is for sale. This is a much simpler process. You do not need to have capital or sponsorship in place. You simply need to agree on a price and then complete the transfer paperwork. You can visit a UAE local chamber of commerce for more information.

When you are doing business in Dubai you should know that the Arabs are experts at bargaining. They are known to rarely say no to a direct business proposition. And if you are told that someone will think something over then you can expect for the real answer to be no.

Business in Dubai can be structured as LLCs, private companies or other types of companies.

If you have employment in Dubai and are considering a move to Dubai to live and work in the United Arab Emirates (UAE) then you may be wondering what the cost of living is like in Dubai and if you will be able to live well enough on the salary that you have been offered to come to Dubai even the salary in Dubai is of lucrative. Generally you will find that the cost of living overall is actually quite similar to that of other European countries.

No Tax For Expats in Dubai

Expats in Dubai will notice straight away the lack of taxation is quite noticeable in the cost of goods and services, which makes these sorts of thing generally less expensive than what most expatriates are used to paying for these items. However, the cost of housing seems to be quite expensive for some foreign workers when compared to what they are used to paying in their home country. Imported foods can also be quite costly. While internationally recognized brands may be more expensive you will find that local and regional brands are quite reasonably priced. As with most places, clothing is as expensive as you make it with the designer brands having a costly price tag. One item to note is that you will not need to purchase any winter clothing since summers are terribly hot and winters are warm as well. Alcoholic beverages are priced slightly higher than normal European prices but electronics tend to be cheaper on average as import costs are lower in Dubai.

Utilities are subsidized by the government which means you benefit by getting inexpensive utilities such as water and electricity. This means that utilities are considerably cheaper in Dubai than in other European countries. International phone call costs are also regulated by the government in order to keep costs low and encourage international business calls.

When you are in the process of negotiating a work contract your prospective employer should provide you with up to date information in the cost of living in the region where you would be living. You can use the following information as a guide for the monthly cost of living in Dubai.

For a single person, the rental cost of a one bedroom unfurnished apartment in Dubai is around $900. You can expect to spend around $450 on food and $225 on utilities, which includes electricity, air conditioning, water and sewage costs and telephone charges. Dining out and other leisure costs can average around $450 and transportation costs around $75 for the month. Insurance costs are around $100 for private health insurance, travel and car insurance.

Low Accommodation Cost For Expats in Dubai

For a couple, the rental cost of a two bedroom unfurnished apartment in Dubai is around $1050. You can expect to spend around $750 on food and $300 on utilities, which includes electricity, air conditioning, water and sewage costs and telephone charges. Dining out and other leisure costs can average around $450 and transportation costs around $150 for the month. Insurance costs are around $150 for private health insurance, travel and car insurance.

For a couple with two children, the rental cost of a two or three bedroom unfurnished apartment or villa in Dubai is around $1200. You can expect to spend around $1050 on food and $450 on utilities, which includes electricity, air conditioning, water and sewage costs and telephone charges. Dining out and other leisure costs can average around $600 and transportation costs around $150 for the month. Insurance costs are around $225 for private health insurance, travel and car insurance.

When you arrive in Dubai to live and work in Dubai, one of the first things you might want to do is see about getting a local banking account. There are many choices when it comes to banks in Dubai and you can choose from regional, international and local financial institutions.

Different banks in Dubai

There are a few different categories that banks in Dubai tend to fall in. Some banks are clearing banks, some banks are merchant banks that provide investment capital to institutional investors in Dubai, some are investment banks and some are retail banks.

Dubai investment banks are for high net worth individuals that are interested in having someone perform the service of portfolio management. Retail banks are also known as high street banks and are there to serve the masses. You will not find savings and loans banks or mutual building society banks in Dubai. You can get the services that these types of banks traditionally offer at regular banks in Dubai.

Unless you are Muslim you will not be a part of Islamic banking. Because the teachings of Islam are against interest, the centralization of funds within a bank is the core of Islamic banking. With this core, the funds are used to finance an investment that produces a return with is shared with the people that provided the funds for the core. But as a foreign worker you will simply be utilizing a standard deposit account at one of the international banks in Dubai. You will likely see international banking names that you recognize such as Citibank or British Bank. Banks are eager to attract new customers and often issue loans with a quickness.

Drive Up Service From Banks in Dubai

While some banks do offer drive up service, it is not the norm to do business quickly in this region. Remote areas will have mobile banking facilities available for use. If you work in a large industrial complex there will probably be a bank on site at that location.

While bank operating hours vary by region, hours are normally from 8:00 am to 1:00 pm from Saturday through Wednesday. Most banks re-open from 4:30 pm to 6:30 pm on these days. On Thursdays most banks are only open from 8:00 am to 1:00 pm and are closed on Fridays. If you are using an airport location then it will likely be open 24 hours a day. Banks in Dubai do close for public holidays.

While there have been some notable banking scandals in recent history in Dubai, the banking industry is quite solid and well supported. Regulations exist to prevent any major falls of banks in the future.

Dubai Currency – AED and Dhs

In case you just got a job offer in Dubai and you are now on your way of getting yourself ready to relocate to Dubai to live and work, there’s a chance you are wanting to know what is common Dubai currency that is used in the United Arab Emirates and whether the currency that you bring over from your own country is exchangeable in there. Once you are staying in Dubai, you’ll be using the Dubai currency which is known as UAE dirham for your spending and also for your income. The abbreviation for UAE dirham is either AED or Dhs which you are going to see in Dubai. For your knowledge, the UAE dirham is connected to the US dollar, in other way it means that the Dubai currency is going to get affect by the fluctuations of the US dollar.

For US dollar, it is divided into 100 cents while the UAE dirham is divided into fils. The coins that you can get in Dubai are available in 5, 10, 25 and 50 fils and AED1. Notes or bills are available in AED 5, 10, 20, 50, 100, 200, 500 and 1000. If you are getting confused, you can always go online and search for currency conversion website for you to find out what is the Dubai currency exchange rate for your UAE dirham. Today, the exchange rate for 1 USD is about 3.73340 AED. There are many currency exchange counters that you can exchange your country currency to UAE dirham before you arrive in Dubai. You should make some exchange in order to have some local currency when you just arrive in Dubai. With having some local currency, you can make some purchase in Dubai airport, having a meal or calling taxi to take you to the place that you live. If you didn’t have any UAE dirham when you arrive in Dubai, you can exchange at the Dubai airport but you should expect to get a very unfavorable exchange rate at the airport currency exchange counters. You can exchange the currency at the banks in Dubai city center as most banks will offer you the best exchange rates. You may exchange in the hotels as well with truly unfavorable exchange rates.

Free Flow Of Dubai Currency

You may find out that in Dubai there are no restrictions enforced on the import/export of currency in/out of the emirate. All foreigners who possesses a Dubai residence visa will be able to open a Dubai bank account for withdrawing money or transferring the money out. You are not going to come across any money declarations if you happen to cross the emirates borders. You are able to transfer out money in any country currency from Dubai retail banks to any country. You should do some researches if you want to transfer fund out since different banks are providing you with different exchange rates and charges for the service. You can also go to money changers to transfer fund and you will get more favorable rates compare to Dubai banks. In case you want to transfer a huge amount of money, you should go to ask for the commercial exchange rate which will be better compare to the published tourist exchange rate.

It tend to be the expertise for Dubai banks to carry out the task of international money transfers since the money cash flow being transferred out has become a lucrative business in Dubai mainly because of the volume of foreign workers. Expats in Dubai usually transfer out most of their earnings back to their home country or offshore bank accounts in order to avoid taxes. They will exchange the Dubai currency into their country currency and transfer back to their home country from the money they save from their jobs.

If you want to know the exchange rate for your country currency with Dubai currency, you can go to XE to find out the latest rate.

After you decide to move to Dubai and begin looking for job in Dubai, you will have to search for apartments in Dubai to rent and you will need to be prepared to sign a rental contract. You can rent a place to live in an apartment block or a compound or maybe even a villa if you are lucky. Regardless of the type of place that you want to rent or the length of time that you will need to rent the place you will need to sign a rental contract. Rental contracts are a bit more detailed than the standard apartment lease that you might be used to signing in the United States or the United Kingdom.

Rent in Dubai

Typically when you find a place that you wish to rent in Dubai, your rental contract will be drawn up with the owner of the property and your sponsor as the principal instead of you. This is because the property owner prefer to have dealings with sponsors as opposed to expats as it tends to be easier for them to settle disputes should they arise. There are other reasons as to why it is beneficial for your sponsor to be the principal in the rental contract as opposed to you.

Rental contracts usually specify a need for advance payment in the form of two checks. One of the checks is to be post dated six months in the future. If your employer is your sponsor, they will make the rental payments and then deduct it from your paycheck on a monthly basis. Long term rental contracts are typically for a period of one year and short term rental contracts can be as short as one month. If the rental contract needs to be terminated before the end date that is the responsibility of your sponsor since they are the principal on the contract. This is a good thing as the landlord might insist on you find a replacement if you were the principal whereas there is probably a relationship between the sponsor and the landlord that allows for early termination with ease.

It is almost impossible to change your rental mid contract so you should be sure of the place before you get a contract drawn up. Most rental contracts will state that you need to return the place in reasonable condition minus normal wear and tear. And you can expect to be evicted for any unnecessary loud noise or abuse or property.

Furnished apartments come with a range of goods so your rental contract will include an inventory list. It is important to go over this inventory list to make sure everything listed on it is in the apartment or you will be charged for it when you move out.