Major UAE developers are gearing up for Cityscape Singapore which is being held at the Suntec Singapore International Convention & Exhibition Centre on
10-12 April 2007. Asian investors will be courted by major industry players such as Fortune Investment Group and Dheeraj East Coast, who aim to use the three-day property investment and development event as a platform to benchmark their unique developments and source foreign direct investment (FDI) by stressing the tax free environment that currently prevails in the UAE.
Singapore has one of the lowest tax regimes in SE Asia. Corporation tax on earnings above US$ 100,000 is set at 20 per cent with a tax free holiday for the first three years for any start up company and at present the state-island has no capital gains tax. Using Singapore as the benchmark for the region, the UAE has a clear tax advantage, but Singapore has the benefit of a long and successful track record. They are obviously both attractive markets, but for different reasons.
Neil Hickman, Exhibition Director, Cityscape Asia stated, “Investment is always a balance between risk and reward. By removing the tax element, investors are significantly reducing their risk and the track record for UAE developments so far would indicate handsome reward. With Singapore being the financial hub for S.E. Asia, Cityscape Asia provides the perfect platform to bring developers and investors together.”
Appreciating the massive potential the region has to offer Cityscape Asia has attracted a large contingent of participants from the Middle East, covering over 25 per cent of the available exhibition space. In particular the UAE is well represented with Abu Dhabi-based Sorouh, Dubai’s Fortune Group and Dheeraj & East Coast, all confirming their attendance.
With over 20 projects either under way or due to be launched within the next 2 years, Dheeraj Wadhawan, Managing Director, Dheeraj & East Coast, commented, “Through the visionary leadership of Sheikh Mohammad, the Dubai Government has created a very attractive investment environment, which has been well marketed internationally. Singapore is home to some major Indian investors and we see this as the first step towards tapping the unlimited investment capital available in India, where we already have significant business interests.”
Apart from the obvious benefits of tax free returns, an uncomplicated freehold arrangement for both commercial and residential properties is providing UAE developers with an enviable competitive edge. Apart from no capital gains tax, foreign owners can buy and sell at any time without any preconditions or bureaucratic red tape.
To illustrate this point, within months of launching, Fortune Group had sold over 70 per cent of its flagship freehold property Burj Al Alam. At 108 storeys high and located in Dubai’s Business Bay, it will be the tallest commercial tower in the world and will host the world’s highest hotel “Following the Freehold law, the booming economy and expanding industries are unleashing tremendous demand for additional commercial and residential space particularly in Dubai,” remarked Syed Muhammad Ali, CEO of Fortune Group
