Mortgages in Dubai and the Big Banks

 Dubai real estate has been a consistently hot real estate market for investment property in the past few years. Dubai is the most populated and second largest Emirate in the United Arab Emirates. It has seen enormous construction and has attracted investors worldwide to its real estates projects.

I remember the time when an overseas investor searching for a mortgage would be confronted by puzzled Dubai developers and even more confused estate agents. When an international investor did find a local bank it would be so expensive and time consuming the buyer often gave up. The good news is that the Dubai real estate market is maturing and the big banks have woken up to the fact that Dubai mortgages are potentially very big business.

The early troubles with a Dubai mortgage all stemmed around the difficulties foreign buyers had securing the freehold on a property. Since the announcement on March 12 2006 that non United Arab Emirates nationals may be given the right to own freehold properties in some parts of Dubai, massive interest has been stirred in overseas property investors. Demand is surging and real estate is in short supply many off plan developments sell out in days of release.

Now with laws passed and established zones in Dubai where freehold ownership is not in question the banks are finally acting. The Dubai mortgage market is set to be one of the most competitive markets in the world. The worlds investors are looking at Dubai long and hard. Investors will not tolerate being ripped off with high price mortgages.

Unlike many overseas markets most freehold property in Dubai has not bought with mortgage finance. This gives the market a huge amount of resilience. Many of the mortgage providers in Dubai will only lend to non residents in the Dubai freehold zones.

Properties for sale that are suitable for foreign buyers are in the following freehold zones: Dubai Sports City , Dubai Marina , I.M.P.Z. International Media Production Zone , Jumeirah Village , The Palm Jumeirah, Shaikh Zayed Road, International City, The Lagoons, Palm Deira, Jebel Ali Airport, Emirates Road, Dubai Land ,Business Bay ,Downtown Dubai and much more

So what is attracted international Banks to Dubai that's simple money and plenty of it. Dubai's population is currently in the region of 1.4 million citizens, by 2010 it is expected that Dubai will be home to 3.5 million residents. The Banks anticipate a huge demand for property and in turn a big demand for mortgages. The large multi nationals will be moving in and with them their employees all needing a place to live.

Most of Dubai population is set to be made up from people from overseas. Dubai will be truly multi cultural multi national and that feeling is already in Dubai. Experience Dubai nightlife and you will see it is a truly multi national experience.

The future for the big banks is bright as overseas investors will feel more secure going with mortgage providers that they are familiar with.

In all mortgages in Dubai are good for the banks and are set to be good for overseas buyers investing in the new world attraction which is Dubai.

Impact Of Technology In Banking

In the world of banking and finance nothing stands still. The biggest change of all is in the, scope of the business of banking. Banking in its traditional from is concerned with the acceptance of deposits from the customers, the lending of surplus of deposited money to suitable customers who wish to borrow and transmission of funds. Apart from traditional business, banks now a days provide a wide range of services to satisfy the financial and non financial needs of all types of customers from the smallest account holder to the largest company and in some cases of non customers. The range of services offered differs from bank to bank depending mainly on the type and size of the bank.


As a central bank in a developing country, the Reserve Bank of India (RBI) has adopted development of the banking and financial market as one of its prime objectives. "Institutional development" was the hallmark of this approach from 1950s to 1970s. In the 1980s, the Reserve Bank focused on "improvements in the productivity" of the banking sector. Being convinced that technology is the key for improving in productivity, the Reserve Bank took several initiatives to popularize usage of technology by banks in India.

Periodically, almost once in five years since the early 1980s, the Reserve Bank appointed committees and working Groups to deliberate on and recommend the appropriate use of technology by banks give the circumstances and the need. These committees are as follows:

-Rangarajan committee -1 in early 1980s.

-Rangarajan committee -11 in late 1980s.

-Saraf working group in early 1990s.

-Vasudevan working group in late 1990s.

-Barman working group in early 2000s.

Based on the recommendations of these committees and working groups, the Reserve Bank issued suitable guidelines for the banks. In the 1980s, usage of technology for the back office operations of the banks predominated the scene. It was in the form of accounting of transactions and collection of MIS. In the inter-bank payment systems, it was in the form of clearing and settlement using the MICR technology.

Two momentous decisions of the Reserve Bank in the 1990s changed the scenario for ever there are:

a) The prescription of compulsory usage of technology in full measure by the new private sector banks as a precondition of the license and

b) The establishment of an exclusive research institute for banking technology institute for development and Research in Banking Technology.

As the new private sector banks came on the scene as technology-savvy banks and offered several innovative products at the front office for the customers based on technology, the demonstration effect caught on the reset of the banks. Multi channel offerings like machine based (ATMs and pc-Banking), card based (credit/Debit/Smart cards), Communication based (Tele-Banking and Internet Banking) ushered in Anytime and Anywhere Banking by the banks in India. The IDRBT has been instrumental in establishing a safe and secure, state of the art communication backbone in the from of the Indian Financial NETwork (INFINET) as a closed user group exclusively for the banking and financial sector in India.


Liberalization brought several changes to Indian service industry. Probably Indian banking industry learnt a tremendous lesson. Pre-liberalization, all we did at a bank was deposit and withdraw money. Service standards were pathetic, but all we could do was grin and bear it. Post-liberalization, the tables have turned. It's a consumer oriented market there.

Technology is revolutionizing every field of human endeavor and activity. One of them is introduction of information technology into capital market. The internet banking is changing the banking industry and is having the major effects on banking relationship. Web is more important for retail financial services than for many other industries.

Retail banking in India is maturing with time, several products, which further could be customized. Most happening sector is housing loan, which is witnessing a cut-throat competition. The home loans are very popular as they help you to realize your most cherished dream. Interest rates are coming down and market has seen some innovative products as well. Other retail banking products are personal loan, education loan and vehicles loan. Almost every bank and financial institution is offering these products, but it is essential to understand the different aspects of these loan products, which are not mentioned in their colored advertisements.


Plastic money was a delicious gift to Indian market. Giving respite from carrying too much cash. Now several new features added to plastic money to make it more attractive. It works on formula purchase now repay later. There are different facts of plastic money credit card is synonyms of all.

Credit card is a financial instrument, which can be used more than once to borrow money or buy products and services on credit. Banks, retail stores and other businesses generally issue these. On the basis of their credit limit, they are of different kinds like classic, gold or silver.

Charged cards-these too carry almost same features as credit cards. The fundamental difference is you can not defer payments charged generally have higher credit limits or some times no credit limits.

Debit cards-this card is may be characterized as accountholder's mobile ATM, for this you have to have account with any bank offering credit card.

Over the years, the banking sector in India has seen a no. of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers and consequently, the banks. Some of the significant changes in the banking sector are discussed below.


Taking advantages of the booming market for mobile phones and cellular services, several banks have introduced mobile banking which allows customers to perform banking transactions using their mobile phones. For instances HDFC has introduced SMS services. Mobile banking has been especially targeted at people who travel frequently and to keep track of their banking transaction.


One of the innovative scheme to be launched in rural banking was the KISAN CREDIT CARD (KCC) SCHMME started in fiscal 1998-1999 by NABARD. KCC mode it easier for framers to purchase important agricultural inputs. In addition to regular agricultural loans, banks to offer several other products geared to the needs of the rural people.

Private sector Banks also realized the potential in rural market. In the early 2000's ICICI bank began setting up internet kiosks in rural Tamilnadu along with ATM machines.


With a substantial number of Indians having relatives abroad, banks have begun to offer service that allows expatriate Indians to send money more conveniently to relatives India which is one of the major improvements in money transfer.


E-Banking is becoming increasingly popular among retail banking customers. E-Banking helps in cutting costs by providing cheaper and faster ways of delivering products to customers. It also helps the customer to choose the time, place and method by which he wants to use the services and gives effect to multichannel delivery of service by the bank. This E-Banking is driven by twin engine of "customer-pull and Bank-push".


Technology has been one of the most important factors for the development of mankind. Information and communication technology is the major advent in the field of technology which is used for access, process, storage and dissemination of information electronically. Banking industry is fast growing with the use of technology in the from of ATMs, on-line banking, Telephone banking, Mobile banking etc., plastic card is one of the banking products that cater to the needs of retail segment has seen its number grow in geometric progression in recent years. This growth has been strongly supported by the development of in the field of technology, without which this could not have been possible of course it will change our lifestyle in coming years.

Dubai Offshore Banking

 Dubai, one seven of the Arab Emirates, is located in the Persian Gulf along its southern coastline, on the Arabian Peninsula.  It has the highest population of all the cities of the United Arab Emirates.  Although it was founded in 1830, the Arabic country of Dubai seems to be just now, finding its way onto people of the western world's radar of offshore banking and international investing.

With wars currently being fought in the Middle East, people in other parts of the world may be leery of investing their money in an Arabic country.While Dubai does follow Islamic law, the laws of commerce are in line with those found in most other safe tax havens, and in no way should this keep individuals from taking advantage of the many tax free investment opportunities available there. These features make it an ideal offshore banking location.

Dubai has many expatriates among its 1.3 million people, with languages including English, Urdu, Tagalog, Malayalam and Russian are spoken there.  Of course Arabic is the official language.  English is one of many languages used at Dubai banks and other financial institutions, and there should never be a problem communicating during business hours.

Abu Dhabi economic vision, which has been formulated by the Emirate's leadership has led to investments in tourism, industries that are knowledge based, real estate, as well as the energy sector investments it is known for.  By a strategic use of its oil revenues and investments from outside the country, Dubai has developed a diverse and competitive economy that has helped its citizens find employment opportunities and prosperity.  Proof of this can be found in the GDP per capita of  $40,400 (2008 est.).

While offshore banking is simply defined as "banking in a location or country different from the one you reside in," the reasons and needs of an individual or corporate investor can be many and varied. Dubai is becoming one of the worlds leading financial sectors when it comes to offshore investing and banking. Major banks have made sure that they maintain a presence in Dubai like HSBC Offshore, Abbey National, and ABN Amro. All banking activity is regulated from a central institution called the UAE Central Bank. While many restrictions are placed on banks by this institution, ideally the DIFC free trade zone will free up many of these restrictions and attract even more big name financial organizations.  Dubai offers exactly the type of  financial environment an investor looking to minimize their tax burden should look for.  It has no corporate taxes, income taxes, taxes on capital gains, property and wealth, and offers easy access to additional financing.

Keep an eye on this country as the free trade zones continue to open up, and more financial liberties are being granted which will promote healthy competition in the offshore banking and investing sectors.

Englishman Peter Macfarlane is an author and lecturer on offshore finance, investment, due diligence and wealth creation matters. After fifteen years advising high net worth clients on offshore asset protection structures such as companies, trusts and private interest foundations, he decided on a career change and now mentors individuals who are interested in creating, preserving and growing wealth in a secure offshore environment. Peter defines wealth in the broadest sense, believing that money is worthless if you don't have health and happiness. He is now joint editor of The Q Wealth Report, a publication dedicated to publishing freedom, wealth and privacy information for a select audience. The Q Wealth Report not only helps you decide which banking institution is right for you, but we provide personal recommendations and introductions to help you open an offshore bank account of your choice.


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