UAE’s Economy Projected to Grow by 4.8% in 2025: Key Insights for Global Real Estate Investors in Dubai and Ras Al Khaimah

UAE’s economy is set to grow 4.8% by 2025, creating prime investment opportunities in Dubai and Ras Al Khaimah’s real estate markets, according to Oxford Economics. For global real estate investors, especially those from the USA, Canada, and other international markets, this presents a compelling opportunity to invest in Dubai and Ras Al Khaimah—two of the UAE’s most dynamic real estate markets.

As the non-oil sector and tourism surge, understanding how to invest in Dubai as a foreigner can help investors strategically maximize their portfolios.

Non-Oil Sector Growth: Boosting Real Estate Investment Opportunities

The UAE’s non-oil sector is expected to grow by 4.6% in 2024, with key industries such as tourism, travel, and innovation driving this growth. Dubai is expected to see over a 20% increase in visitor numbers this year, with continued double-digit growth next year. This sustained tourism boom will drive up demand for short-term rentals, hotels, and vacation homes in prime locations, creating opportunities for high rental yields.

Ras Al Khaimah, with its focus on eco-friendly tourism and sustainability, is becoming a sought-after destination for global investors. Its appeal lies in its affordability compared to Dubai, while still offering strong long-term growth potential in both residential and commercial real estate.

For those wondering how to invest in Dubai from the USA, Canada, or as a foreigner, the opportunities are abundant. Foreign investors benefit from no property taxes, favorable visa programs, and the ability to rent out properties, including on platforms like Airbnb, making Dubai and Ras Al Khaimah prime markets for both short-term and long-term investment strategies.

Strategic Initiatives and Foreign Investor Appeal

Key initiatives such as We the UAE 2031 and Dubai’s D33 continue to enhance the UAE’s appeal to foreign investors. With policies that allow for 100% foreign ownership of onshore companies and reduced costs of business setup, foreign interest in real estate investments continues to rise. This is particularly beneficial for global investors looking to invest in Dubai or Ras Al Khaimah, as these policies attract both new residents and businesses, increasing demand for properties.

In addition, the UAE’s focus on innovative sectors like finance and technology ensures long-term economic stability, making it a safe bet for foreign real estate investors looking to diversify their portfolios in a high-growth market.

Comparison to Canada’s Economy: Why the UAE Stands Out

While the UAE’s economy is projected to grow by 4.8% in 2025, Canada’s growth is more moderate. Canada’s economy is forecasted to expand by just 1.8% this year, primarily driven by the energy sector and immigration. While Canada offers stability, it doesn’t match the rapid growth and booming real estate potential seen in the UAE, particularly in Dubai and Ras Al Khaimah.

The affordability of UAE real estate compared to major cities in Canada, such as Toronto and Vancouver, is a key draw for investors. Property prices per square foot in Dubai are significantly lower, offering greater capital appreciation potential. Moreover, the UAE’s favorable tax environment, including no capital gains tax, adds to its attractiveness when compared to Canada’s more regulated market. Investors looking to diversify outside of the North American real estate bubble will find the UAE to be a more dynamic option with higher returns.

Opportunities for Global Investors: How to Invest in Dubai and Ras Al Khaimah

For foreign investors from the USA, Canada, or elsewhere, the UAE’s rapidly growing economy and strong real estate market make it an attractive destination. If you’re wondering how to invest in Dubai from Canada or how to invest in Dubai as a foreigner, the process has become more streamlined with payment plans for off-plan properties and flexible visa options for property investors. The UAE’s Golden Visa is available to investors with property portfolios exceeding AED 2 million, making residency an added benefit for those seeking long-term investment in the region.

Both Dubai and Ras Al Khaimah offer unique benefits, from Dubai’s luxury developments and high rental yields to Ras Al Khaimah’s affordability and eco-friendly developments. Investors can expect high demand for rental properties, particularly in Dubai, where tourism is expected to continue growing exponentially.

As global real estate investors look to diversify, the UAE stands out as a prime location offering high growth, strong returns, and favorable policies for foreign ownership. Now is the time to explore the opportunities in Dubai and Ras Al Khaimah and maximize your investment portfolio in one of the world’s fastest-growing economies.

Ghada Benitez (“GG”)
Certified International Property Specialist / Licensed Realtor®
Host of The Dubai Connect Podcast™ & The Spain Connect
GG Benitez International
619.339.7978 | GG@GGBenitezInternational.com | WhatsApp
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