Banking And The Real Estate Business
In 20th November of 2006 it was announced by S1 Corporation that National Bank of Dubai (NDB) implemented that its EMV complaint keeping in mind the real estate boom in Dubai. In this context the bank would be assisted by another Dubai based corporation, the Dubai Duty Free (DDF) and the entire project is overlooked by the S1 Corporation. It should be noted that this company, S1, is a noted software solution company in the context of payment service and customer financial assistance. Thus it can be stated that there is a huge amount of faith and credibility associated with the entire scenario.
It would be an extremely significant move in the banking and transaction related aspects of Dubai. In this section many question could be raised, and an interview was conducted in this section. How does a foreigner think about Dubai as a real estate investment opportunity? Most of the investors in Dubai are confident in putting their money on business opportunities because they believe the costs of living, lands, and rents are much cheaper compared to other nations. Plus the quality of life is better. It can be well stated, as a city, Dubai is a real potential to attract investments in terms of both regional and foreign ventures.
It should also be mentioned that from the mid eighties this city is presenting a formidable track record in terms of opportunities and has recorded a huge amount of enormous growth in terms of economy within the said period. It is often mentioned in this context by several esteemed business personalities that this city is a highly rewarding location where investing is highly fruitful. It is also mentioned that this city has a low cost of living and at the same time holds a great background in relation to health care and education.
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Professionals and workers, both skilled and unskilled, are lured to this city due to its tax free status on income. As a result these people can enjoy a better living standard as the salaries are valued at a higher utility and at the same time they can spare the additional advantage for better households. The points of view of investors are on a similar ground in this respect of lenient tax structure. The property returns are found to be on a stable ground with a per year acceleration of 10% to about 15% for the last few years and is expected to be the same at least up to the next couple of years.
It is also calculated that within the next 2 years the total amount of cumulative financial investments would be on a high note and it is assumed that the margin of growth would be around 100% of the existing growth. (Marr 2006) However, it should be noted that there are several questions are needed to be discussed in this respect. It is true that the present position of Dubai as a commercial centre is a very affirmative one but there are bound to be challenges from different dimensions in terms of investors and professional executives.
The first and foremost of these questions depends on the political scenario of the region. It is difficult to ascertain in the moment the future of political trends in the region. Thus the important question is that whether the political stability is secured or not? Again, the future trend of trading and finance also raises questions and there are scepticisms in the context of long termed financial development and the ability to sustain it for a long term. Furthermore, it is just an assumption whether the government of UAE would be instrumental in sustaining the city as a free trading area or not?
The geographical advantage of Dubai also puts questions from some quarters of the potential investors and economist. They ask for the guarantee about the status of the city in future as a thriving economical centre. These are posing questions that could be a possible risk for investors. As of the moment, the UAE is very confident in giving the opportunity to Dubai’s growing economy and as a business friendly zone compared to other nations of the UAE. Risks such as terrorism and international economic depression are more likely to strike if problems would arise.
Strategies are being developed like developing local laws and keeping faith with the international laws on market and business codes and ethics. New laws now permit investors to own the freehold of certain real estate in Dubai keeping them attracting more buyers to invest in overseas property. Though a major comment was placed regarding over expansion of large volumes which may have an oversupply of real estate. It should be mentioned in this context that these risks are possibilities in theory but to negate these potential risks the authorities of the city are working hard to develop a full scale model in terms of tourism.
It can be ascertained that with such successful methods the risks can be well countered. Colossal properties such as the Dubai land would add to this process of attracting investments and tourists. The authorities of the Dubai Cultural Village are making the region more attractive by developing several constructions dedicated to art and culture. These would include centres for rare bookstores, music schools, libraries, museum of art, dance institutes and other centres for performing arts. Apart from these the city authorities are building of massive constructions as properties in the middle of the sea The World.