There has been a significant history of economic and trade ties between Turkey and UAE for over 2 decades. Despite tensions and political differences over some topics, Turkey benefitted from the UAE’s growth as a global hub. The pandemic underscored the region's need to lessen tensions, expedite cooperation, and improve economic integration for reciprocal benefits.

Economic and Trade Relations Between Turkey and UAE

The relationship between the two countries has improved significantly with time. Bilateral trade has topped $20 billion. Meanwhile, mutual investments are nearing $25 billion. In 2024, Turkish investors invested $3 billion in Dubai. This amount may grow to $5 billion by 2025. The UAE is the second largest trade partner in the Gulf region. It keeps attracting Turkish investors because of its great opportunities.

Dubai Experiencing Tourist Influx from Turkey. 

Dubai alone is one of the main reasons for this cooperation. It was ranked as the seventh most-visited city in 2024. It has successfully hosted a substantial number of Turkish visitors. There are many reasons why visitors are drawn to this dynamic city. From entertainment to investment prospects, Dubai has become a preferred destination for Turks. The estimates suggest a total of more than 130,000 visitors from turnkey annually and expatriates residing in Dubai exceeding 20,000.

An increase in Turkish tourism is anticipated in the years ahead, particularly during peak holiday periods. Each year, roughly nine million Turkish citizens undertake international tourism, with a strong preference for European destinations. The expanding popularity of Dubai is expected to attract a greater number of Turkish tourists. Turkish nationals ' investment in Dubai has significantly increased in recent years.

What factors contribute to Turkish investors' increasing interest in Dubai's real estate market?

Turkish investors are increasingly drawn to Dubai's real estate, with over 110,000 new property investors in 2024. Turkish real estate firms opening offices in Dubai support the trend. Key factors include:

• Economic Factors:​​​​​​​

Dubai has been an enormous city attracting investors from across the world. Its strong oil revenues and diversified economies, like tourism and the real estate sector, have made it a global hub. For investors from Turkey, the city offers a stable environment compared to other domestic markets. 

The government tries its best to attract foreign investments through long-term visa plans along with benefits. These long-term stability and growth prospects offer Turkish investors the opportunity to protect and grow their wealth in a region that has shown impressive economic resilience.

• Tax Advantages: 

The UAE is an attractive location for foreign investors, particularly Turkish investors, due to several tax incentives, including no personal income tax, capital gains tax, and often no corporate tax. The establishment of free zones allows for 100% foreign ownership, tax exemptions, and streamlined regulations, fostering a vibrant environment for Turkish entrepreneurs and businesses to expand internationally. The ease of setting up a business and conducting international trade enhances the UAE’s appeal as a hub for Turkish investments.
 

• High Rental yields: 

Dubai's real estate market is gaining popularity due to its high rental yields compared to other global cities. The growing expatriate population and thriving tourism industry in the UAE contribute to the increasing demand for real estate in Dubai. The city's status as a global tourism and business hub also attracts a steady influx of potential tenants, making real estate investment in Dubai an attractive option, particularly for Turkish citizens.
 

• Cultural and business connection:

​​​​​​​Over the decades, there has been a strong cultural and business connection between Turkey and Dubai. The Turkish expatriates keep growing in the UAE making it an attractive choice for Turkish entrepreneurs and investors seeking to expand their reach in the Middle East. Networking opportunities, access to local and international markets, and shared cultural understanding make the UAE a natural extension for Turkish businesspeople.

We expect awareness of these opportunities to boost investments further, with approximately $100 billion of Turkish capital invested abroad in the last five years.

A bright future is on the horizon for Turkish investment 

From the previous discussions, it has been clear that Dubai has successfully developed itself as an investor-friendly environment. However, an important future consideration is that Dubai is projected to become an 8-million-person city by 2030, creating even greater opportunities for real estate investors. The city's rapid development, coupled with its thriving economy, suggests that investors stand to gain significant long-term returns. 

As Parcel Estates, we recognize this dynamic trend and understand why Turkish investors are increasingly turning to Dubai for real estate opportunities. Looking ahead, we anticipate that Turkish investors will capture a larger share of Dubai’s $250 billion real estate market, benefiting from the city's booming property sector. We invite Turkish investors to take advantage of these lucrative opportunities and secure a strong position in one of the world’s most promising real estate markets.