The United Arab Emirates is hitting back at emerging competitors, such as Turkey, in the fight to become the prime destination for offshore international investors.

The Iran-US-Israel war significantly crippled the UAE’s economy, with its major airlines shutting down for several weeks and expats packing their bags and returning to their taxable home countries. 

The UAE Ministry of Defence confirmed on April 7 that the country faced thousands of projectile strikes from Iran, including missiles and drones, making it the hardest hit country, surpassing even Israel. The outcome was unease among locals and expatriates alike for several weeks. 

To make matters worse, the blockade of the Strait of Hormuz has suffocated oil shipments as well as those of other products, while the Emiratis’ national energy company, ADNOC, was forced to shut down operations at its Habshan gas processing plant, the largest in the company, due to Iranian attacks. While it resumed operations in late March, ADNOC undoubtedly lost potential revenue due to the closure. 

Given the UAE’s now apparent vulnerability as well as that of its Gulf neighbours, talk has emerged of a distant regional player who could unseat the UAE as a hotspot for international investors, namely Turkey.

Despite its struggling economy, reports have emerged of Turkey becoming the new Dubai. Even as Ankara struggles with its own internal political instability and economic issues, the Erdogan government seems intent on painting the country as a destination worth considering for expats, given its relative physical safety compared to countries in the Persian Gulf that have been bombarded by missile and drone strikes.

Some of the Turkish government’s initiatives include a package of incentives for foreign investors, set to be introduced by the treasury and finance minister, ex-Wall Street banker Mehmet Simsek.

Still, with the Iran-US ceasefire still in effect at the time of writing, the UAE is intent on preventing a Turkish takeover, clearly seeking to retain its title as a premium destination for international investors and professionals.

Dubai, in particular, has taken swift action, revising its residency visa conditions for property investors. The emirate decided to remove its AED 750,000 ($202,500) minimum value threshold for sole property owners, while introducing an AED 400,000 ($108,000) per-share floor for jointly owned properties.

The changes, issued without a formal announcement, represent a significant broadening of eligibility under the emirate's two-year property-linked residency permit, first introduced in 2019 as part of the UAE's broader effort to attract foreign capital without requiring a local sponsor.

Under the previous framework, individual investors needed a minimum property value of AED 750,000 ($202,500) to qualify; that requirement has now been dropped entirely for sole owners, though joint ownership arrangements carry stricter per-share conditions.

For mortgaged or instalment-plan properties, a no-objection certificate from the bank or developer confirming amounts paid and outstanding balances is compulsory. Completed properties not under construction require proof that at least 50% of the property value, or AED 375,000 ($101,250), has been paid. Qualified investors may sponsor family members under the permit.

The regulatory adjustment arrives as Dubai's real estate market posts robust first-quarter figures. Transactions reached AED 138.7bn ($37.45bn) across 44,150 deals in Q1 2026, a 21.2% y/y increase in value, with deal volumes rising 4.35%.

The average transaction size climbed to approximately AED 3.3mn ($891,000) in January alone, pointing to growing participation from institutional investors and high-net-worth individuals rather than speculative short-term buyers.

The UAE’s push to attract foreign investors and workers doesn’t end there. In late March, the UAE government announced the launch of the first phase of its "Tax Incentives Programme for Research and Development." The programme offers companies tax credits of up to 50% on qualifying R&D expenditures, capped at AED 5mn ($1.36mn). 

While Turkey may seek to unseat the UAE as an international investment hub, the Emiratis are showing strong resolve in their efforts to retain existing expatriates and attract new investors through favourable visa and business regulatory conditions.

Given the UAE’s superior economy and standard of living, it would be logical to assume that the Persian Gulf state will not give up its status as a premium destination for international investors without a ruthless fight.