Schiff Sovereign's Take on United Arab Emirates
The United Arab Emirates (UAE) is an intriguing place. It is a federation of seven very different emirates.
Sharjah – the country’s “cultural capital” – is unlike Ras Al Khaimah with its old forts and castles, which again is different from the port city of Fujairah on the Gulf of Oman.
But two emirates always stand out – Dubai and Abu Dhabi.
And again, both are completely disparate. There's probably not a soul in the world who hasn't heard of magnificent Dubai. But many have never heard of Abu Dhabi.
And curiously, Dubai is relatively poor when compared to Abu Dhabi. The latter is awash with oil, while Dubai is not.
In the 1960s, Sheik Rashid bin Saeed Al Maktoum, the longstanding ruler of Dubai, realized that with the lowest oil production in the region, Dubai had to do something differently.
His famous saying, "My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover, but his son will ride a camel,” reflected his concern about Dubai's finite oil reserves.
So the Sheik started building a more self-sustaining economy.
He built a harbor and ports, and with time transformed Dubai into one of the most important financial centers in the world – an astonishing contrast with the sleepy fishing village it was some 60 years ago.
Dubai is an awe-inspiring, cosmopolitan place, attracting a huge number of expats to the country from all over the world.
As one of Sovereign Man’s friends who moved there from his native Greece puts it – “the level of energy in Dubai is astounding”.
He loves it there. And after moving his business to Dubai, he saves a ton in taxes. In fact, his income tax rate is exactly zero.
At the same time, many expats comment that it's hard to feel entirely at home in Dubai. You are always a “guest of the ruling family” there.
Temporary residency is easy to obtain, but unlikely to lead to any permanent status, ever. And you can forget about becoming a citizen there unless you are a billionaire.
But that seems to be changing. Emiratis are starting to encourage people to stay longer term, and even retire in the country.
Finally, we also like the UAE as a banking jurisdiction. Islamic banks in general are conservative custodians of your money.
And Abu Dhabi-based banks, in particular, are awash with capital. If there were to be any troubles, the Sheik would probably come out with his own pocket money and bail the banks out if he had to.
Sharjah – the country’s “cultural capital” – is unlike Ras Al Khaimah with its old forts and castles, which again is different from the port city of Fujairah on the Gulf of Oman.
But two emirates always stand out – Dubai and Abu Dhabi.
And again, both are completely disparate. There's probably not a soul in the world who hasn't heard of magnificent Dubai. But many have never heard of Abu Dhabi.
And curiously, Dubai is relatively poor when compared to Abu Dhabi. The latter is awash with oil, while Dubai is not.
In the 1960s, Sheik Rashid bin Saeed Al Maktoum, the longstanding ruler of Dubai, realized that with the lowest oil production in the region, Dubai had to do something differently.
His famous saying, "My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover, but his son will ride a camel,” reflected his concern about Dubai's finite oil reserves.
So the Sheik started building a more self-sustaining economy.
He built a harbor and ports, and with time transformed Dubai into one of the most important financial centers in the world – an astonishing contrast with the sleepy fishing village it was some 60 years ago.
Dubai is an awe-inspiring, cosmopolitan place, attracting a huge number of expats to the country from all over the world.
As one of Sovereign Man’s friends who moved there from his native Greece puts it – “the level of energy in Dubai is astounding”.
He loves it there. And after moving his business to Dubai, he saves a ton in taxes. In fact, his income tax rate is exactly zero.
At the same time, many expats comment that it's hard to feel entirely at home in Dubai. You are always a “guest of the ruling family” there.
Temporary residency is easy to obtain, but unlikely to lead to any permanent status, ever. And you can forget about becoming a citizen there unless you are a billionaire.
But that seems to be changing. Emiratis are starting to encourage people to stay longer term, and even retire in the country.
Finally, we also like the UAE as a banking jurisdiction. Islamic banks in general are conservative custodians of your money.
And Abu Dhabi-based banks, in particular, are awash with capital. If there were to be any troubles, the Sheik would probably come out with his own pocket money and bail the banks out if he had to.
