Income Tax? Trouble is, crazy as it seems economically, Dubai does not seem to want 'foreigners' on a permanent basis.
They have shown very little respect for the rights of foreigners in their country, including the labour market, and reversal of resident visa policies (particularly the over 60's, a massive potential market of retiree's)
nobody even feels confident if their payments into escrow accounts are safe, too many variables and unknowns alround.
I remember the excitement with which the forming of RERA was welcomed. that excitement didn't last long, what a washout.
I personally would not get involved again, because I would not be confident that any laws they pass today would remain the same for future years.
They cannot treat investors in the way they have and then expect current or future investors to have any confidence in their futures.
i.e. the damage has been done.
I totally agree with you Sixgun. All indications, actions and reversals clearly point in the same direction -
'they don't want 'foreigners' on a long term basis - the absence of which, the city will never grow nor attract enough critical mass to attract investors OR residents to create a sustainable economy.
Like yourself, I was optimistic about RERA and the various laws enacted to 'protect' investors and create greater transparency. It was good in theory, but recent events over the last year suggest - it was only that - a 'theory' as they fell painfully flat in enforcing the very laws they created. The net effect of which, has left enumerable investors 'burnt crisp' to the tune of countless BILLIONS - leaving them in the real practical sense - with NO recourse.
The prevailing attitude amongst local officials I am sorry to say, is a hairs breath away from complete and total 'contempt' of foreigners. Clearly observable from the time you clear customs to virtually every dept you need to interact with govt' or govt linked orgs.
When reading about the cost to go to arbitration - it's simply insane and appears nothing more than a veiled attempt to 'squeeze' more money from foreigners - it seems designed to discourage and dissuade you from throwing more good money after bad rather than be an effective tool to help and assist. This is very, very sad indeed, as I was once very optimistic about Dubai and felt they were moving in the right direction but when they were faced with diversity - they fell painfully short. They were masters at 'Talking the Talk but
NOT Walking the Walk' Not only on the retail level from an investors perspective but as we have now seen - on an institutional level. May no mistake about it - they way the current Bond Issue was handled, Dubai will find it very, very hard to find any institutional funding and support - in spite of whatever platitudes or positive spin you may see in the media. Institutions will avoid Dubai with a barge pole.
TO those who proclaim, 'All the serious long term investors will be coming back this year' - wishful thinking at best or current portfolio managers stuck with inventory trying to attract the naive so they can dump and run.
I truly respect and admire Sheik Mo's vision and what he tried to accomplish but unfortunately he placed cronies to execute his plan that are otherwise clueless and short term in their thinking and simply have little respect or concern for 'Foreigners.' Considering the order of magnitude of the people that got ripped off - covering the globe - don't expect for one minute that this will quickly fade away from the collective memory. Too many people have lost their
ENTIRE life's savings...
Considering the fact that more bonds will be coming due - with little of any sizable amounts of investments coming in and AD has it limits and also does not wish to throw away good money after bad - where will the money come from? Don't be surprised when you see the IMF step-in AND -
INCOME TAX - PERSONAL & CORPORATE - think that will attract more investors? When all of your income becomes officially reported? I am sure the people from Iran, India, Pakistan, Russia, South Africa, China etc... will love that..
In regard to the previous statement on this thread comparing Dubai to HK - It would take more than a litre of Jack Daniels to begin to see a similarity - as it does not exist. in Hk - you have a
real rule of law - you have PR and can comfortably and securely live there for years. You have massive amounts of people from China that want to move there - and in fact, they had to tighten-up the visa restrictions less HK get flooded - in addition, it's still a desirable place for foreigners that are welcomed - not bitterly detested. I ask you, 'Where are all the people that want to storm the borders and establish a life in Dubai? ' If they existed, you housing surplus would vanish in a heartbeat.
When I was living there - I spoke to many foreign nationals and they all had the same story, 'I was born here but I cannot call Dubai my home because at anytime I can be forced to leave. ' You lose your job - you're gone - it's that simple. I met retirees that lived and worked their for over 30 years - raised their families there and when it came to retirement - they had to be expatriated. Not their choice as they had the means to continue living there but by law - had to leave. How can you really build a city or a society that in effect , operates like a 'transient hotel' ?
Dubai clearly wants foreigners to invest but does not want them as long term residents - plain and simple.
They had a real chance and the support of many who shared the vision but alas, it was only that - a 'vision' and sadly, an unfulfilled one'. A vision evaporating like a smoke ring from a shisha pipe - a 'pipe dream' Sheik Mo's needs to replace his cabinet and bring in fresh ideas and a different mind set - especially within the legal structures and RERA to regain his credibility - but that too may be - too little too late - as has been pointed out - the damage has been done.
My heart goes out to those stuck with property investments there and of course, they need to try to remain as optimistic as they can, but there also comes a time when you need to face the bitter facts and plan accordingly - or continue searching the bazaars for and oil lamp and keep rubbing waiting for your geneii.
I wish you the best of luck.
