Huge Financial Amount for a Piece of Land in Dubai International Financial Centre
The emirate of Dubai encompasses a range of massive business centers that serve as a hub for several global companies, whether their headquarters are in the emirate or another branch. This makes business owners strike deals and hold meetings in this city, especially as it includes a selection of top hotels suitable for these personalities, which contain halls suitable for various types of business meetings. Today's talk is about a piece of land within the Dubai International Financial Centre, for which a very large sum of money was paid, reflecting the importance of the real estate market in the United Arab Emirates.
Sale of Land in Dubai International Financial Centre
The last remaining piece of land in the Dubai International Financial Centre was sold for AED 289 million (USD 78.7 million) to a private family developer represented by Luxhabitat Realty International.
Global real estate consultancy Knight Frank and Core advised Emirates NBD Bank on this successful sale of the land plot, which covers an area of 197.8 thousand square feet with a total built-up area estimated at around 2.2 million square feet.
This land plot is located near the Damac Tower and was originally purchased in 2010 by the Rahaba Real Estate Company, based in Abu Dhabi, as part of the Jabber Group, which obtained a loan from Emirates NBD Bank, which later merged with Dubai International Bank to become Emirates NBD Bank valued at AED 201 million. When it became impossible to repay, an order was issued by the Dubai International Financial Centre Courts for the first time in the country's history in 2021, in favor of Emirates NBD Bank after a legal case that lasted for a long period.
The Consulting Company Responsible for the Sale Process
Emirates NBD Bank appointed Knight Frank and Core to sell the land plot through a private sale process, making it of interest to investors and businessmen from all over the world.
The advisors said that the final price of AED 289 million, which was a cash transaction, not only demonstrates the strength of the real estate market in Dubai, but also underscores its attractiveness as a key regional and global investment center.
The Future of the Land Plot Sold in the Dubai International Financial Centre
Knight Frank real estate consultancy, which provided advice to the sellers at Emirates NBD Bank, said that the land plot, which is expected to have a potential redevelopment value of AED 2 billion (USD 545 million), is a mixed-use development comprising hospitality, residential, commercial, and retail spaces.
Andrew Love, Partner and Head of Capital Markets and Agency at Knight Frank Middle East, and Gorav Shorebury, Co-Founder and Partner at Core, said in a joint statement: "A deal of this magnitude is significant not only for the Dubai International Financial Centre but also for the emirate of Dubai itself."
Dubai's Support for Investors
Dubai has always supported investors from all over the world by providing many facilities and laws that attract them, such as the Golden Residency, leading to tax exemption for a wide range of companies, as it does not impose taxes on all types of companies except for oil companies and foreign bank branches. Free zones also support businesses through careful laws regarding ownership, taxes, and employment.
In Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, and Ras Al Khaimah, there are free zones, each with its own regulations and laws, but all of them offer investors many advantages such as; 100% full ownership of the establishment without the need for a local partner, the possibility of transferring capital, and profits by 100%, no minimum capital investment required, no taxes on corporate income, or personal income. It is also necessary to mention the avoidance of double taxation on income, under which the UAE has signed 94 agreements with other countries.
