International Investment

INVESTING IN DUBAI
FROM BAHRAIN

Bahraini investment into the Dubai property market

Dubai’s property market remains highly coveted by Bahraini investors, and its allure as a prime investment destination is set to endure. Over the past two decades, since Dubai welcomed foreign investment, Bahraini investors have astutely acknowledged its immense potential, channeling substantial investments into both Dubai’s property market this looks set to continue.

Dubai's growing appeal to Bahraini investors as ties strengthen

Never has the Bahraini-UAE investment axis been hotter with the recent announcement of cross-border deals the number of Bahraini investors looking to source Dubai property is only going to increase

Bahraini investors have been captivated by Dubai’s property market due to its remarkable performance and potential for attractive returns for many years. With a robust economy and a thriving real estate sector, Dubai consistently ranks among the world’s top-performing property markets, making it an enticing investment opportunity for Bahraini investors seeking to expand beyond their domestic market.

This is especially true considering Bahraini has just issued its first golden licences to 5 global companies as it looks to chart a similar level of economic growth and diversification as that seen in the UAE.

Key reasons and statistics for Bahraini investment in Dubai property

Investment volume

During the early years of Dubai’s property market, investors from Bahrain and other GCC nations played a crucial role in fueling its growth and establishing a foundation of trust.

These investors recognised Dubai’s potential and seized the opportunity to invest in a market with promising prospects. Their contributions not only injected capital but also helped shape Dubai’s property market, setting the stage for its subsequent success. As Dubai solidified its reputation as a global business hub, the interest from Bahraini investors and others in the GCC continued to grow.

Today, Bahraini investors, alongside their counterparts from other GCC countries, see Dubai as a gateway to lucrative investment opportunities. The symbiotic relationship between Dubai’s property market and the GCC investor community thrives, reinforcing the strong economic ties and facilitating cross-border investments. As Dubai’s real estate market evolves, Bahraini investors remain poised to contribute to its growth and shape the region’s property landscape.

Rental yields

Dubai’s property market has long been recognised for its attractive rental yields, presenting Bahrani investors with a compelling opportunity to generate consistent rental income. With rental yields reaching around 7%, Dubai stands as an appealing prospect for investors from Bahrain and other regions.

However, it is worth noting that Bahrain’s property market offers even higher rental yields compared to Dubai. 

By exploring opportunities in both Dubai and Bahrain, investors can leverage the unique strengths and advantages of each market to maximise their total income potential.

Long-term performance outlook

Dubai’s property market has showcased remarkable resilience and continuous growth, particularly in recent years. The market has witnessed double-digit capital gains and a remarkable surge in industry sales transactions, surpassing even pre-pandemic levels. This exceptional performance serves as a testament to the market’s strength and offers Bahraini investors a promising outlook for long-term returns on their investments.

With Dubai’s property market demonstrating such positive momentum, Bahraini investors can confidently explore the opportunities it presents. The market’s robust growth indicates the potential for sustained appreciation and profitability over time. This encouraging performance outlook provides Bahraini investors with the reassurance and confidence they seek when considering investment opportunities in Dubai’s real estate sector.

Strategic partnerships and economic synergies between Bahrain and Dubai

In recent years, the economic ties between Bahrain and Dubai, along with the broader United Arab Emirates (UAE), have strengthened significantly, resulting in strategic partnerships and collaborations across various sectors. Notably, the real estate industry has witnessed substantial investment and growth as a result of this bilateral relationship.

Both Bahrain and Dubai share a common vision of economic diversification, moving away from reliance on oil as their sole economic driver. This commitment has opened doors for investors seeking opportunities beyond traditional sectors. A prominent example is Investcorp, an alternative asset manager with Mubadala Investment Company as its major shareholder, which plans to invest up to $1 billion in the GCC real estate market over the next five years. This demonstrates a strong belief in the region’s potential for growth and prosperity.

Bahrain’s tourism sector has also experienced significant support from UAE-based property developers, aiding its recovery from the challenges posed by the pandemic. Notably, investments from Dubai-based Emaar Properties and real estate developer Eagle Hills contributed to Bahrain securing $492 million of tourism capital investment in 2021—the highest in the Middle East and Africa (MEA) region, according to the fDi Intelligence Tourism Investment Report.

The growing collaboration and major investments between Bahrain and Dubai present compelling opportunities for Bahraini investors looking to capitalise on the strong economic ties and the promising prospects within the UAE. The shared commitment to economic diversification, coupled with the resilience and potential for growth in both economies, lays a solid foundation for long-term success.

Where are Bahrainis and other investors buying Dubai property?

Bahraini investment in Dubai property set to continue

Dubai’s strong appeal, favourable investment climate, and promising economic outlook continue to attract significant Bahraini investment. As a preferred destination for Bahraini investors seeking real estate opportunities, Dubai’s strategic location and global business hub status drive demand for properties, ensuring a consistent rental market and long-term capital appreciation. The close relationship between the UAE and Bahrain, along with existing bilateral agreements, facilitates trade and investment, making Dubai an attractive and accessible market for Bahraini investors.

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