Dubai property investors confronted by high terrorist risk

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by Gill Montia

Britons who have invested in property in Dubai will be disconcerted by the news that the UK Government has warned British nationals living in or visiting the United Arab Emirates (UAE) that terrorists may be planning indiscriminate attacks.

The UAE comprises seven emirates including Dubai, which is home to around 100,000 British expatriates.

In addition, up to one million holidaymakers from the UK visit the UAE each year.

The level of terrorist threat changed on Saturday from “underlying and low” to “high”.

The severity of risk is under constant review but is not possible to estimate how long it will be assessed at this level.

Analyst are linking the shift to al-Qaida and consider Dubai to be a likely target for the terrorist group because it has the most liberal lifestyle of all the UAE cities and allows US navy ships to use its port facility.

Since 2002, when Sheikh Mohammed bin Rashid Al Maktoum set about making Dubai a city of the future, foreign property investment has been actively encouraged.

In recent years, capital appreciation has risen annually by between 15% and 25% and rental returns have grown by between 10% and 20%.