Investing in the fruits of peace: How about being a partner in the highest hotel in the world?

The UAE government encourages Israeli investment in Dubai.

Stick taxation policies and government guarantees are supposed to reassure those who still fear investing in an Arab-Muslim state.

Following the trend of residential real estate in the world, get the following: Partnership in a hotel in a destination that has become attractive to many Israelis

Talia Levin

19/03/2022

Saturday, 19 March 2022, 11:44 Updated: 11:50

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Anyone whose tourist memory goes back at least to the 1980s probably remembers the hot trend in which many Israelis purchased a permanent annual vacation unit at Club Hotel and the like.

It has since been demonstrated that the "pool" model of vacation units has passed from the world.

More than two years ago, Israeli investors marked their places of investment mainly in international real estate. Portugal, Spain, Poland, and even Kyiv and Odessa were investment destinations for many Israelis, who took advantage of low real estate prices and high returns.

And while many investors are worried about what is happening in Eastern Europe and their bombed-out assets, another option is opening up for Israelis who love vacations, investments and especially the combination between them: Dubai.

These days the international expo is ending with great success, many Israelis have been doing business in the UAE for the past two years and this economic love story is only getting hotter, but the flow this time is not for residential real estate but for vacation - for him, as you will soon understand,

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The First Group is one of the largest real estate ventures in Dubai, the company has been operating since 2005 and manages an international team

, the company's business partners in Israel.

" Pretty soon the company decided to focus exclusively on tourist real estate in hotel towers or holiday apartments. "Both for vacations and attractions and for the business world. And it is worth remembering that Dubai is a strategic point between Asia and Europe, with free trade areas."

Suite in the highest hotel in the world.

Dubai (Photo: PR)

Whisper to the horses

45,000 guest rooms already exist in Dubai and according to Nineveh, it is not going to stop.

"In terms of tourist arrivals, Dubai ranks between 1 and 4 most sought after destinations in the world. In terms of spending per tourist it is in first place," says Nineveh. Tourism must constantly respond to the growing demand. "

"Absolutely, anyone can. We'm talking about some investments, one of which is Ciel's latest project of the company that is going to be the tallest hotel in the world, a special tourist real estate initiative, but not only.

It is possible for Israelis to invest in other projects and in various amounts.

Projects that are very high in terms of attractiveness, for example in the Business Bay area, near the Burj Khalifa.

A project built on a field where they know that for years to come it will have an open view of the Burj on one side and on the other, it will be the only hotel overlooking the private horse racing arena of the ruler of Dubai, which has no offer.

"I mean, whoever wants an amazing view will be hosted in a room in front of the Burj Khalifa and Australian, English, and South African tourists who are crazy about horse racing will ask for a room that overlooks the other side."

View of the bay, view of the horse races (Photo: PR)

It's time maybe to talk a little about numbers.

Anyone who wants to invest in the latest flagship Ciel project will have to part with $ 550,000, but he won’t have to do it alone.

"In this specific hotel it is possible to shop with partners on one registered unit."

Nineveh adds that there are also exit points, "We are at Perry Sale, once the hotel has an operator and it is launched, the value of such a unit for purchase will increase by 20%, but also in terms of ownership you can buy now and make an exit later. "But it is possible to enter as an Israeli investor even in sums of $ 250,000 in other and no less attractive projects."

Nineveh notes that one of the advantages of investing in hotels is that there is a company that specializes in the matter and the return is guaranteed to always be maintained at the Dubai average and above.

"The investor knows that he has guaranteed returns and also an asset, that one day if he wants he can sell at a profit, because it only gets better."

"I'll tell you this: the risk is the same as the risks in Israel, an atomic bomb from Iran, and that's it. Really. When Dubai is a city whose essence is tourism, and when it comes to investing in the tourism real estate sector, the risks are very low.

I will give perhaps the opposite example, in the UAE 80% of the inhabitants are foreigners, and in the beginning of the Corona a lot of foreigners just left Dubai and returned to their countries.

so what happened?

They did not stop building on the one hand, and on the other hand the supply increased and the demand decreased when it comes to residential real estate. Even as an investor in residential real estate, you should always have someone to manage your property, but keep in mind that in tourist real estate you get a management company. Of the hotel, and they are the ones who make sure that the return is high. "

"Even if your room is empty. That is, if the occupancy level in the hotel provides returns, even if your room is empty inside."

"The whole business model of the company relies on foreign investments. They have investors from 150 countries in the world, a community of investors of several thousand people. And what happens - and it is important for Israelis to invest there and maybe answer you The question of risk - the investor's money, whether he does it in a one-year or two-year plan, goes into a trust account of the authorities in Dubai, and it is this account that pours the money in favor of construction.

This is important to know.

This is how Dubai treats foreign investors and gives them full security.

There is also a fully certified investment here, by a government ministry that documents the taboo, and the investor is also connected to an app that shows him every month or quarter what happens to the money, how much money has gone into the investment, and what the project progresses.

There is very regular and accurate monitoring on this issue. "

Israelis on target

Investments abroad are usually accompanied by these regulatory benefits, what happens in Dubai?

"There are also regulatory benefits from the Emirates and from the point of view of the real estate entrepreneur. .

The purchase tax in the Emirates stands at 5% and as mentioned, the country has zero tax when it comes to returns and future sales.

Moreover, for those who are afraid, it is worth mentioning that Israelis are currently making large deals in the emirates in the field of cyber, sensitive technologies and in a variety of fields.

"I think this barrier of investment in an Arab country can be removed. We are a year and a half since the agreements and there are more and more agreements with our Ministry of Tourism and theirs, and the Ministry of Economy with the corresponding Ministry of Economy. And it is intensifying."

"They are very focused on Israelis, they have done market research and research and understand the potential of language, they understand the potential in the Jewish market and also in Arab society where there is no fear of investing in a Muslim country and through us they also appeal to this audience. Lots when people express interest in investing, the group actually subsidizes flight and accommodation in one of their hotels, a person invests in the brand and stays in the brand, and gets a tour between projects and investment, sits with an investment advisor in the office with simulations and sees all options. What does the room look like and what does the investment look like. "

And for those who are still undecided or do not currently have the finances to purchase a holiday unit in a hotel, can do the opposite and become a club member and possibly in the future enter into investment: "The group has opened a tourist brand called the first collection Meals at the best restaurants in their hotels, entrance to all kinds of attractions, museum of the future, sailing, Ferris wheel, etc.

They actually want to produce an exclusive customer club that is currently offered at a ridiculous price of $ 899.

You actually get a package worth $ 2,000.

Of course in the future it will be different, but this is the opportunity right now, and this launch is also aimed at the Israeli market. "

Quote from the company's CEO - I will pass on later

Rob Burns, CEO of FIRST GROUP

: "Since the signing of the Avraham Agreements, we have witnessed an increase in the number of Israeli customers interested in investing and taking advantage of the growth of Dubai's hotel and hospitality sectors," says Rob Burns, CEO of The First Group.

"We have also seen a significant increase

in the number of tourists and business travelers visiting Dubai over the past 12 months, with many Israeli customers taking advantage of our Dubai Lifestyle Experience initiative, which is an exclusive VIP travel service that entitles members to discounted hotels.

The bilateral trade between Israel and the UAE, which is expected to reach $ 2 billion this year according to the UAE Business Council, gives us great confidence that the current level of interest will only increase in the coming years. "

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Tags

• Dubai

• United Arab Emirates

• hotel

• investment