Kleindienst Group and Austrian Chamber of Commerce Agree Partnership to Boost Foreign Direct Investment in UAE

Posted on 18th April 2019

Kleindienst Group and Austrian Chamber of Commerce Agree Partnership to Boost Foreign Direct Investment in UAE

Iconic Destination ‘The Heart Of Europe’ Will Attract Increased Numbers of Investors In Its Dubai-based Second Homes and Tourist Attractions 

Dubai, UAE: Kleindienst Group, the UAE’s largest European property developer and creator of The Heart of Europe, announced a close partnership with the Austrian Chamber of Commerce and with the support of the UAE Embassy in Vienna to actively promote Dubai and The Heart of Europe to drive higher Foreign Direct Investment (FDI) from Austria to the UAE. In 2018, the Dubai FDI Monitor report cited Austria as one of the top source markets of FDI in Dubai and Kleindienst contributed 9.3 per cent of the total. Increased sales of second homes and completion of construction projects to prepare for tourists’ arrival on The Heart of Europe will lead to a significant contribution. 

Dubai is already at the top of the travel wishlist with over 15.79 million people visiting the city, more than New York. Tourism is a key pillar of the overall economic plan with the Government targeting 20 million visitors to Dubai by 2020. It is diversifying tourist demographics by adding new attractions and experiences to broaden the appeal of Dubai including theme parks, new entertainment, dining and retail destinations, cultural attractions such as the Dubai Frame and new spectacular shows including La Perle and Rotunda. The appetite for Dubai is present and will only increase with new destinations and activities such diving and snorkelling amongst the seascapes of six islands of The Heart of Europe. 

Kleindienst is focussed on the second home market and pioneering this new concept in Dubai and the region. According to its research, the potential value of this sector is upwards of USD 15 million. The Heart of Europe provides favourable returns for investors that are written into its contracts, offering guaranteed return on investment in 12 years; strong capital appreciation, and a rental yield from 8 – 10 per cent, higher than the UAE’s average of 5.19%[1] as well as the international average short-let yield[2]. Phase One of this iconic destination is now sold out with handover scheduled in 2019 and Phase Two and Three are now underway and strong demand from European investors. 

His Excellency Hamad Alkaabi, UAE Ambassador to Austria said: “UAE is an attractive option for both investors and tourists. The government has made it easy to invest and operate in the UAE. There is security and protection of investment as well as the excitement of preparation for Expo 2020. The second home market is relatively new for the UAE and offers a great opportunity to invest with favourable returns on investment.” 

Mr Richard Schenz, Vice-President for Austrian Federal Economic Chamber said: “Austria has an important role in Foreign Direct Investment to the UAE and we intend to increase this with support from the embassy and Kleindienst.”

Josef Kleindienst, Founder and Chairman of Kleindienst Group said: “The Heart of Europe will play a prominent role in Foreign Direct Investment from Austria to the UAE. We are focussing on European investors now that Phase One is sold out and will be handed over this year. Conversations with European investors at MIPIM showed us that the time is right with tangible buildings and guaranteed return on investment.” 

For more information about The Heart of Europe, please visit www.thoe.com

 

[1] Referenced here: https://www.globalpropertyguide.com/rental-yields

[2] Savills Report September 2018 on the Second Home Market – average gross short-let yields are 6.4>#/span###

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