UAE Responds to Competition from Turkey
The United Arab Emirates is striving to maintain its position as a key destination for international investors. At the same time, competition is growing from countries such as Turkey, which also seek to establish themselves as regional hubs for capital, skilled workers, and businesses.
Recent tensions in the Middle East have highlighted the vulnerability of the Gulf region. Air travel was temporarily disrupted, supply chains came under pressure, and some foreign workers temporarily explored alternatives. Restrictions on shipping through the Strait of Hormuz also weighed on trade, energy exports, and transport routes.
Against this backdrop, there is growing discussion in the region about whether Turkey could become more attractive to international investors and skilled workers. Ankara is attempting to position itself as a safe and well-connected hub between Europe, Asia, and the Middle East. This includes new tax incentives and programs for foreign investors, which are set to be presented by Turkish Finance Minister Mehmet Şimşek, among others.
Dubai Eases Visa Rules for Real Estate Investors
The UAE is now responding with its own measures. Dubai, in particular, has adjusted the conditions for residence visas based on real estate investments. The emirate has lifted the previous minimum threshold of 750,000 dirhams for sole owners. At the same time, a new lower limit of 400,000 dirhams per share has been introduced for jointly owned properties.
This makes it easier to obtain the two-year residence permit tied to property ownership. This visa category was introduced in 2019 to attract foreign capital without requiring investors to have a local sponsor.
For properties financed through mortgages or installment payments, buyers must continue to submit a clearance certificate from the bank or the developer. For completed properties, at least 50 percent of the property value must also be paid. Eligible investors can also sponsor family members under the residency permit.
Real estate market remains strong
The adjustment comes at a time when Dubai’s real estate market continues to show solid figures. In the first quarter of 2026, transaction volume reached 138.7 billion dirhams, equivalent to approximately 37.45 billion U.S. dollars. This represents a 21.2 percent increase in value compared to the previous year. The number of transactions rose by 4.35 percent.
The average transaction size also increased. In January, it stood at around 3.3 million dirhams. This points to greater participation by institutional investors and high-net-worth individuals.
In addition to visa regulations, the UAE is also relying on tax incentives. At the end of March, the government announced the first phase of a program to promote research and development. Under this program, companies can receive tax credits of up to 50 percent on eligible R&D expenses, capped at 5 million dirhams.
While Turkey is attempting to position itself more strongly as an alternative for international investors, the UAE continues to hold significant advantages: an established financial and real estate infrastructure, international networks, a high quality of life, and years of experience competing for global capital.
Competition between Dubai and Istanbul is thus likely to intensify further. This gives investors more choice—and puts pressure on both locations to offer better legal, tax, and economic conditions.
