Newsletter Archives - Page 26 of 57

Newsletter, U.A.E

Free Zones in Dubai Have Extended ESR Submission Deadline to June 30

April 9, 2020

ESR or Economic Substance Regulation submission had the deadline of March 31, but due to the pandemic of COVID-19 in these days, a few free zones have extended the deadline for the companies.

As they postponed the deadline for the companies, Younis Haji Al Khouri, Undersecretary at the Ministry of Finance recently announced the fact that the cut-off date is June 30 and they will make certain that all the regulations are followed as per the deadline, given by the Ministry of Finance. He has also added this move ensure ultimate compliance.

Dubai International Financial Centre had also asked the entities for submitting the ultimate economic substance notification on the DIFC portal. Though the March 31, 2020 deadline is no longer applicable, and this has been mentioned on their official website. UAE is a committed member of the OECD Inclusive Framework.Thus, it had come with a Resolution on the Economic Substance on April 30, 2019. It had done so

As per the evaluation of tax framework of United Arab Emirates as well. The ultimate rules and regulation required companies, which simply carry out the relevant activities, to maintain the sufficient economic presence in a nation regarding some of the activities they undertake. It is applied to financial year commencing on or from January 1, 2019.

Abu Dhabi Global Markets have also stated in a recent note that ESR notification got extended until further notice comes. Keeping the recent situation or this pandemic in mind, this can be considered as one of the big reliefs in the general business. Businesses and companies can utilise this extension for analysing their business details and financial aspects.

Newsletter, U.A.E

Organizers of Expo Discover the Postponement by One Year for COVID-19

April 9, 2020

Recently Expo Dubai has conducted a virtual meeting of the Steering committee with all representatives from different nations.They discussed the ultimate impact of Coronavirus, COVID-19 which has impacted the Global preparations of Expo 2020 Dubai.The nations that took part in it explained the worldwide precautionary measures to the Steering Committee.These measures were mandatory for making the involved people totally safe.

According to their assessment, every nation now has an economic crisis.The members of Dubai Expo 2020 reaffirmed all of their solidarity along with the international community as this will simply navigate through the ramifications, which have already resulted from this unprecedented global disaster.

Expo 2020 Dubai has ample representatives from the whole world and during this situation; they are trying hard to come out of it.So, recently, they reaffirmed the UAE commitment for working hand in hand.They want all of their foreign and international partners to come forward and then deliver the World Expo that holds true to the founding purpose.

Though, everybody already knows about the postponement of Dubai Expo 2020, but, they are still trying to find a way.The entire committee has agreed collectively for discovering with BIE,The Bureau International des Expositions, BIE, will now on work with all of the Member States and Expo 2020 Dubai directors to set up the change in dates.Though they have already announced the date, the general assembly has also stated a fact that the final decision can be postponed.

Eventually, if there are any certain changes on the absolute decision on the deferment, then only the General Assembly and also the BIE’s Executive Committee can do these.According to the rule, if the dates need change, then at least 2/3rd of the Member States of the Organization should vote. And if the votes do not come in favour of general assembly, then the change in the date cannot happen.

Recently, the Minister of State for International Cooperation, Reem Al Hashemy, has given stress on this specific matter.He is also the Director General of Expo 2020 Dubai.He has stated that this entire global situation is moving quite fast, and this is unpredictable.As plenty of countries are going through the situation, so they will follow due to BIE processes on deciding to delay the Expo 2020.

Newsletter, U.A.E

The implications of Expo 2020 for Dubai’s real estate scenario

March 16, 2020

There seems to be an upsurge in the real estate arena of Dubai thanks to the years of reforming the real estate policies to draw in the investors. The reforms seem to be working now that the investors are gaining their confidence back about the UAE real estate market. The initiatives that have brought about this change include increasing the flexibility of debt payments by the financial institutes, favourable plans for payment, and long term visas for the professionals and investors.

It seems that the confidence of the investors started rising ever since the news of Dubai Expo 2020 was announced. This was good news for the real estate investors interested in the country because it was a sign of the potential of the market for attracting buyers. A couple of investors have already delivered projects worth multimillions of AED. And, the good news lies not just in the fact that they have delivered the project, but rather in the fact that most of these projects have sold out completely. After all, the popular belief in the real estate world says that the delivery of the project is as important as it is to get it to sell out.

Now, let’s take a look at some of the data to get a better understanding of the market conditions. The last quarter of last year hit a record of sorts by closing nearly five thousand real estate transactions. This was the highest property sales recorded since the year 2008, and the residential stocks of Dubai are projected to hit 6, 37,000 in the year 2020.

The Expo 2020 has been touted, by the Dubai government, as the largest event ever to take place in the UAE. Dubai is to play host to one hundred and ninety countries, and millions of visitors from all over the globe are slated to join the event. The event will carry on for one hundred and seventy-three days, and have various themes like sustainability and innovation in the Arab region.

There is clear evidence that the Expo has changed the face of the economy for the past hosts of it. There is a noticeable growth in local economies and the price of real estate.

Dubai is ready to spend billions to make Expo the biggest event ever in the world. The organizers are expecting eleven million visitors from the UAE and fourteen million from overseas. Going by the recent reports, the Expo 2020 is slated to prove a boost of AED 122.6 billion to the local economy, along with creating over 49,700 permanent jobs this year. Investors are also confident that it will lead to the overall development of the business scene in Dubai.

The investments made in Expo and the money spent by the government in building its infrastructure are one of the main factors keeping the country’s economy on the right track during recent times. It has been predicted that the Expo can help the economic growth of Dubai to range from 3.8% to 4.5% in the future.

The Expo will create job opportunities in varied sectors like tourism and travels, engineering and infrastructural development, architecture, and service industries.

With the right amount of push from the Expo, the real estate sector of Dubai is on a roll now. The developers expect that after the Expo, investors will want to make the country their base because the infrastructural facilities and regulations can make it as lucrative as the other global cities, such as Paris, London, or New York.

Though the leading investments in real estate come from the Chinese and the local Emiratis, the developers have noted that even Indians are now considering Dubai for investments in real estate. Dubai has the luxury factor coupled with great prices compared to what is available in their home country, which attracts the Indian investments. For instance, residential properties have an average price of AED 1,000 – 12,000 per sq. Ft. in Dubai, which is roughly INR 20,000 – 24,000.

The time to invest in the real estate scene of Dubai is right now because of factors that go beyond the usual buying and selling properties. When you think of the average returns you can earn anywhere in the world, the figures stand at five to six per cent, and maybe seven to eight per cent on a great day. But, Dubai can easily take it to ten to twelve per cent for all day.

Newsletter, Singapore

Tax rebates and incentives announced in the Singapore Budget for aiding business growth

March 16, 2020

With Singapore still tackling COVID-19, the Budget Statement was delivered in the Parliament by Finance Minister and Deputy Prime Minister, Mr. Heng Swee Keat, on February 18, 2020.

The changes in the tax structure seen this year are nothing groundbreaking, but it still reflects the values held by Singapore during these times of global structural shift and economic uncertainties. Because of the headwinds being faced by the country, several tax measures introduced this year aim at stabilizing the economy and supporting the businesses. In the international front, the country is well-poised to benefit from the geopolitical changes. There have been several refinements, enhancements, and extensions of tax schemes to make Singapore one of the prime financial hubs all over the world. However, the basic tax structure remains the same as the government believes it to be competitive enough and well-suited for Doing Business in Singapore.

Some of the notable highlights, regarding taxes, in the current budget are given below.

1. Corporate Tax benefits offered to the companies for stabilizing the economy

Twenty-five percent income tax rebate per company, within the limit of S$15,000, for the year of assessment 2020
Improvements in the carry back relief schemes for the year of assessment 2020
Greater relief for renovation and refurbishments, plants & machinery for the year of assessment 2021

2. GST remains unchanged for now, but there might be some changes in GST for the cross-border activities of a company.

No GST hikes from seven percent to nine percent for the year 2021, but it might be implemented before 2025
GST levied on digital payments and imported services

3. The Mergers & Acquisitions scheme to be extended till 31 December 2025, with conditions applied

No stamp duty reliefs for the tools executed after or on April 1, 2020
No waiver application allowed for the foreign holdings of Singaporean subsidiaries for the acquisition they made after or on April 1, 2020

4. Promoting venture capitalism and maintaining a competitive market by refining, enhancing, and extending tax incentive schemes

Extending the ‘safe harbor’ clause for disposing of ordinary shares till December 31, 2027
Tax benefits for fun management businesses and venture capital businesses enhanced and extended
Refining, enhancing and extending tax incentives for different industries, which include particular financial markets, maritime businesses, and insurance firms.

Twenty-five percent income tax rebates will be given to the corporate ventures, within the limit of S$15,000, for the year of assessment 2020. The small and medium enterprises will benefit considerably from it, and so will the companies facing minor cash crunches.

Mergers & Acquisitions Schemes Extended, but with certain limitations

The Mergers & Acquisitions scheme, introduced in the year 2010, was meant to foster growth and restructuring of the companies through the scheme. This scheme states that a Singaporean company legally acquiring the shares of another company might be entitled to certain tax rebates.

To qualify for this scheme, the main holding company of the acquiring company needs to be a legal tax resident in the country. This condition was waivered in 2012 for particular companies, including foreign MNCs that have headquarters in the country under the Headquarters Tax Incentive Program.

There will be an extension of the Mergers & Acquisitions scheme for qualifying acquisitions made before or on December 31, 2025. But, there will be certain limitations on the scheme, such as:

The stamp duty reliefs under the scheme will end up lapsing for Singapore company incorporation after or on April 1, 2020
Lapse of waiver for share acquisitions made after April 1, 2020. The MNCs that incorporate Singaporean subsidiaries might not be able to fulfill the conditions of the scheme under this clause.

The present tax benefits under the Mergers & Acquisitions scheme incorporate, an allowance based on purchase considerations that are limited at S$10 million for all the qualifying acquisitions in the year of assessment, and a double-tax reduction on the transaction costs spent for acquiring the qualified shares that are limited at S$100,000. The limits on double-tax reduction and Mergers & Acquisitions rebates are aimed to benefit the growth and development of small and medium enterprises. The other conditions and limitations of the Mergers & Acquisitions scheme continue to remain the same.

Newsletter, Saudi Arabia

Saudi Arabia Exerts Efforts on Providing Scopes of Doing Business

March 16, 2020

“Saudi Arabia is now shifting its interest from studies to creating sustainable environments for attracting investments,” stated Mohammad Al Tuwaijri, the Minister of Economy and Planning in Saudi Arabia.

There are three pillars for catching in incentives, and they are creating clear strategies for measuring performance, offering diversified sources of finance by way of lucid plans through ministries, and the vital role of investment funds. Tuwaijri further stated that the investment funds would be coming in from the National Development Fund, aimed towards supporting all the areas and ministries to use investment opportunities.

In other words, doing business in Saudi Arabia would now be a possibility for every business investor. That’s good news added to the fact that three pillars are offered for attracting investments.

The government in Saudi Arabia is taking up many assignments and even financing the same for offering major benefits to the private sector, said the Minister at a Municipal Investment Forum held on 24-26 February in Riyadh.

The Minister further put down that Saudi Arabia is putting in the best efforts in creating sufficient infrastructure in the long run. The infrastructure will be in perfect line with Vision 2030 in collaboration with the municipalities.

Speaking on investment incentives and as queried by Mubasher, Tuwaijri stressed on the legislative facet of investment incentives in the future. He further added that the Saudi government is working on offering the infrastructure required for different sectors and projects.

The economy in Saudi Arabia is a thriving one, with the nation being the only member of the G-20 major economies from the Gulf region. The oil-based business in Saudi Arabia, along with petroleum, accounts for around 87% of budget revenues, 90% export earning revenues, and 42% GDP. With recent declines in the export of oil, the government here is looking to offer new business opportunities to entrepreneurs seeking Saudi Arabia as a great destination for doing business.

A record number of major business reforms were carried out in this Gulf country in 2019. This earned the nation a position in the Top 10 Universal Business Climate Improvers of 2020. This report came from the Doing Business 2020 publication of the World Bank Group.

There were a total of eight reforms implemented by Saudi Arabia in different business areas. The country ranks 62nd in the list of countries offering the ease of business. It means company registration in Saudi Arabia will not be a matter of great concern for business investors.

Thanks to the reforms meant towards improving the interests of the minority investors, the country now has the third position universally on this indicator. It ranks just after Singapore and New Zealand. The destinations considered easiest for doing business in the world. In addition to this, new reforms being made in the field of getting electricity have made it easy for new businesses to get fast electricity connections in the country.

Coming up with a new business gets easier in Saudi Arabia as the nation has now introduced a one-stop store that merges multiple post-registration and pre-registration procedures. Getting structural permits has also become easier because of the evolution of new online podiums.

Newsletter, Oman

Foreign Investment Law to Drive Small Business Growth in Oman

March 16, 2020

New foreign investment law in Oman is all set to simplify and facilitate the processes for getting permits, licenses and approvals required by foreign investors.

Small businesses generally relate to the regular lifestyles of people. So, to make it easier for such businesses to find their foundation in Oman, the foreign investment law ratifications have been put in place. With this doing business in Oman has become easier for small entrepreneurs.

By way of the foreign investment law, small businesses have been exempted from 100% ownership. This new law is aimed towards improving the corporate climate of Oman and in making it more attractive for the entrepreneurs.

According to the law that has been introduced in Oman, Foreign investment will take place through companies or establishments in the form of the permitted activity. They will be the owner of invested foreign capital on the whole, or they will be making contributions to the same. Also, a license in regards to this activity will be issued by governing authorities. Hence, company formation in Oman shall no longer be a matter of great concern.

Nevertheless, in the best interest of the small-time businessmen in Oman, there has been an exemption of foreign ownership for 37 businesses. This includes photocopying solutions, translation, laundry, tailoring (for men and women), transportation, vehicle repairs, drinking water sale, recruitment and manpower solutions, salon and hairdressing services, fishing, driving instructions, rehabilitation homes meant for orphans, disabled and elderly and taxi services.

The Omani entrepreneurs have welcomed this move on the part of the government. Speaking on the subject, an entrepreneur from Oman put down, “Many Omanis are thriving on small-time local businesses that cannot withstand straight competition from the foreign investors”.

In his interview with the Observer, the entrepreneur further added, “It is also necessary to bring about a reduction in the prices of certain services to make them worth possessing by the common citizens. This would pave the door for small business growth which is not possible in the presence of the bigger giants in the market.”

While further clarity is being expected on the part of the common people and the small business owners in the future, there are some major developments confirmed in regards to the Foreign Investment Law.

Minister of Commerce & Industry will be issuing executive riles under this new law. The regulations added will include significant changes from the old Foreign Investment Law.

As per reports published in newspapers, the executive rules shall come to the forefront by 30th July 2020. A complete list of small business activities where foreign investment shall remain exempted is also likely to be introduced in no time.

The new Foreign Investment Law will not affect the existing laws concerning the GCC investments, Public Establishment for free zones and Industrial Estates and Special Economic Zone.

As per suggestions by the Minister of Commerce & Industry, the power of granting single approvals for the establishment, operation and management of strategic development assignments shall rest with the Cabinet.
All procedures and rules governing the approvals and the process of granting land for different investment projects shall be set out by the executive regulations.

While small businesses eagerly await the introduction of the executive regulations for clarifying some points in the new Foreign Investment Law, the law has indeed relaxed the foreign investment command in Oman to a considerable extent. Specifically speaking, it has boosted the atmosphere for business in Oman by granting 100% foreign ownership to the majority of the business activities.

It is believed that the new Foreign Investment Law will be marking tremendous liberalization in the Sultanate’s history. The law lays emphasis on creating an attractive and robust investment environment for foreign investors and businesses in Oman. The law will be spurring investment; driving economic growth and generating employment for sure.

India, Newsletter

MSMEs Sector Is Going To Get a Major Boost by Government

March 16, 2020

MSMEs, which are also known as the micro, small, and also medium enterprises or companies, are all set to get great news by the Government. A huge boost-up is going to happen for all the micro-enterprises, small enterprises, and medium enterprises.

Recently, on a conference Nitin Gadkari, the Union Minister has stated one imperative fact addressing the entire MSMEs sector. He has stated that the Modi Government is going to give a huge boost to all the MSMEs across the country. He said all these to the people of the nation at the first-ever Bunts Star Achievers Awards of 2020. IBCCI or the Indian Bunts Chamber of Commerce & Industry was the main organizer of this programme.

The micro, small, and also medium enterprises account for almost forty-eight per cent of exports and take up nearly 11 crore people as well. Nitin Gadkari spoke a lot of noteworthy facts on Sunday, which is mainly great for those companies who are doing business in India. All of the small to medium and also micro-enterprises are going to avail a lot of advantages.

Apart from that, the MSME minister has also added one crucial fact that India requires a reliable and effective institute for all the enterprises and entrepreneurship too. But the major thing that the Government is thinking is how fast they can make their decision. Once they are ready with their decision, they will start executing this, and that would be considered as the hallmark of the Government as well. He has also claimed that despite the global economic downturn, India was known as the fastest developing and growing economy.

When it comes to India company incorporation, a few important things are crucial for stabilizing the environment as well as development. What mainly matters is the ultimate change of the knowledge to wealth and also waste to wealth, said Gadkari. But only thinking of development and environment is not enough because holistic thinking is crucial so that the entire infrastructure growth and expansion is not delayed.

In this conference, Sadananda Gowda, who is Union Chemicals and Fertilizer Minister, has stated that since BJP-led party NDA has come to power, the ease and simplicity of doing this business has enhanced to this World Bank global ranking counts 63, which was 134 initially. In this topic of the MSMEs sector, the former chief minister of Karnataka D. V. Sadananda Gowda has also pitched one crucial and major part. He said that recently GST had altered the entire scenario. The GST council is known as one of the autonomous bodies, and there was not a single event of dissent that happened in the last three years. Along with that, he has declared that by the end of 2025, some of the massive infrastructure projects are coming here. That is worth almost a hundred crores, which will be quite big and beneficial for the industries as well.

Newsletter, Saudi Arabia

Saudi Arabia to Soon Shift their Economic Focus to Financial Technology from Oil

February 13, 2020

The production of crude oil in Saudi Arabia has slowed down significantly last year, from 10,643 BBL/D/1K in December 2018 to just 9,890 BBL/D/1K in November 2019. Continuous plunge in crude oil production could be attributed to various factors like the attendant impact on output, and also the attacks on the Saudi Arabia’s oil fields.

Many reports suggested that Saudi Arabia has been trying to coax other OPEC member countries to slash down production by 400,000 barrels per day. But the Saudi government has not agreed to this. OPEC, which is one of the world’s biggest energy-focused coalitions, has reduced its production by 1.2 million barrels (each day) since January last year, which is going to be extended till March 2020. OPEC member nations intend to maintain more stable oil prices by cutting down production.

Saudi Arabia’s economy was able to face the growing pressures in the global oil market because of its diversification policies. The Saudi Arabian Riyadh Bank, which is one of the largest financial institutions located in the Middle East, recently said that they had invested a whopping $26.7 million in a Fintech start-up investment program.

Riyadh Bank CEO Tariq Al Sadhan highlighted the requirement to update the country’s financial and technology infrastructure, particularly with the latest developments that are taking place in the global Fintech industry. The continuing growth and development of this fund is important to the research and development (R&D) work for local start-ups.

Saudi Arabia’s Monetary Authority (SAMA) has supposedly issued over a dozen Fintech licenses especially for this experimental program.

Saudi Arabia’s National Wealth Fund (the Public Investment Fund, or PIF) has now become the key growth engine of the country’s economy. The PIF fund has collaborated with Japan’s Softbank Group by setting up a $100 billion investment fund in the year 2016 specifically for the technology industry. The partnership is only the first step, as the PIF fund has an intended (estimated) investment value of $2 trillion.

The firm has been planning to get a capital of $100 billion via a public sale of a trivial stake in Saudi Aramco, the nation’s energy company. The Saudi Arabian Aramco IPO was put on sale recently and spiked by almost 10% to $9.38, which moved the firm’s valuation to $1.88 trillion, and made it the world’s largest publicly listed company. The IPO was launched on the Saudi Arabian Tadawul, and it broke all previous records that were set by Chinese billionaire Jack Ma’s Alibaba IPO, which was valued at $25 billion in September of 2014.

The fund has now has an objective of supporting and enhancing the country’s economy, and even though it took almost 40 years to establish, the good part is that it has been growing very quickly.

The sovereign wealth fund had now grown to $300 billion in multiple assets (as of May 2019). Then, Saudi Arabia moved its focus to China for various promising business opportunities. Almost $50 billion has been invested in the American economy between 2018 and 2019, and now the country’s government is expecting stable growth and development because of these strategic investments.

Considerable investments in Saudi Arabia’s growing economy and international markets should enable the PIF fund to set up a commanding global presence with billions of dollars’ worth of planned and strategic deals done across the Middle East region, Europe, Asia, and North America.

The Public Investment Fund collaborated with Blackstone in the year 2017 for establishing a $100 billion investment in the space of US-based infrastructure. Approximately $20 billion in investments supposedly came from Saudi residents. But, Saudi Arabia’s alliance with SoftBank’s Vision Fund seems to have captured huger attention, as it’s aimed on Silicon Valley firms. The fund has apparently invested $3.5 billion in various Uber technologies in 2016.

So if you have a plan of doing business in Saudi Arabia and don’t know where to start or how to register a company in Saudi Arabia, do get in touch with us and we would be glad to assist you.

Newsletter, Oman

Complete Foreign Ownership Is Now A Possibility In Omani Businesses

February 13, 2020

100 percent or complete foreign ownership is now possible in majority of Omani companies as per the new Foreign Capital Investment Law that came into effect in the Sultanate starting January 7, 2020. However, there was an exception of a small number of trades and services, in which this won’t be applicable.

There are 37 types of commercial activities that are prohibited for complete or 100 percent foreign ownership including translation and photocopying services, laundry, tailoring, vehicle and automotive repairs, sale of drinking water, transportation, manpower and recruitment services, taxi operation, hairdressing and salon services, fishing, rehabilitation homes meant for the elderly, or disabled, and orphans.

Leaving aside this blacklist, signifying an important but relatively smaller fraction of the Omani economy, the new law broadcasted by Royal Decree 50/2019 (FCIL) opens the doors for assuring new sectors for doing business in Oman or going for 100 percent foreign investment, as per a Muscat-based legal expert.

The Ministry of Commerce and Industry (MoCI) has taken some major steps in the new FCIL to enable a regulatory regime in Oman that is investment-friendly. They also plan to now permit 100 percent foreign ownership in most of the companies set up in Oman other than those conducting any activity out of the above-mentioned blacklist. This blacklist, which has 37 activities listed, currently does not include sectors which were earlier strict in their Omani ownership requirements like oil and gas, defence, and restaurants.

Emphasizing the significance of the new statute to Oman’s determination to foster foreign investment inflows, the FCIL is likely to place the Omani market in a more robust position to offer the foreign investors with a more welcoming, open, and vigorous regulatory framework in which they can conduct business.

If planning for foreign company registration in Oman, it is important to note that the FCIL does not specify a minimum share capital requirement. The MoCI has also relaxed its earlier practice of necessitating any company which has one or more foreign shareholders to begin with a minimum starting share capital of RO 150,000 (almost $390,000). Please note that the fee for registering such type of a company at the Ministry is higher than earlier and starts from RO 3,000 (almost equivalent to $7,800) and is subject to further increase depending on the anticipated share capital of the new company.

Any further clarity in terms of the specific provisions of this new law is likely to be available when the Executive Regulations would be issued later this year.

Newsletter, U.A.E

Are the U.A.E. real estate deals set to go up in 2020?

February 13, 2020

Enquiries for mortgage for lesser-priced properties in the U.A.E. has seen an increase by almost 59 percent between the year 2018 and 2019 because of lower property prices and also favourable interest rates. This trend is probably going to continue this year ensuing a potential upsurge in real estate transactions and a good time for doing business in U.A.E. in this sector.

“Marked by Dubai expo 2020 has the potential to become a very fruitful and interesting year with glaring achievements. Dubai will see a surge in tourist arrivals with almost 25 million expected to visit, increasing the investors’ appetite for the city’s real estate offerings,” Al Hammadi said.

As per the real estate visions and data platforms, Dubai has recorded a 20 percent rise in the volume of sales transactions of registered property in the year 2019 compared to 34,961 transactions recorded in 2018. There were over 45,000 units completed in 2019, which was the highest number of units that were completed in one year in the last five years.

“While we expect that the current supply will continue to put further pressure on prices, we will definitely witness a good year in terms of sales transactions,” he added.

Data also shows that there’s an 11 percent upsurge in the number of enquiries from clients who are earning a salary between 10,000 U.A.E. dirhams ($2,722) to about 12,000 U.A.E. dirhams per month between the year 2018 and 2019. The average property price that people in this income bracket consider is approximately 795,000 U.A.E. dirhams. Interest rate cuts in the year 2019 were surely a reassurance for probable real estate investors.

The U.A.E. Central Bank has slashed interest rates almost three times in the last year to be in tandem with the US Federal Reserve. In the year 2018, the average mortgage interest rate was about 3.99 percent. However, in last few months, it has decreased notably, with some rates going as low as 2.75 percent fixed for one year.

Therefore, when banks calculate affordability and perform stress tests today, those people who might not have passed these tests earlier, now have a better probability of doing so because a lower property prices and better interest rates result in lower monthly mortgage repayments.

This is definitely a buyers’ market because of the new real estate laws and regulations, and it’s good that some people who couldn’t buy previously have got a chance to invest in the property market and own their home now. So, if you are interested in buying your own home in the U.A.E. and can arrange for the down payment, then it is the best time to do so.

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