Comparison of Dubai and Hong Kong for investment

Comparison of Dubai and Hong Kong for investment - Makebiz

The investment process requires careful preparation and study of various indicators of the countries. Important criteria for comparison are population growth rate and its demographic composition, economic indicators, climate, prices and infrastructure.

Dubai is a leader in the megacity ranking. However, it is worth comparing its performance with Hong Kong, which has traditionally attracted investors since the 1970s. It is important that in March 2019, these two cities signed a Memorandum of Understanding to stimulate economic and investment cooperation. Not for nothing shortly before that, researchers noted an active inflow of investments from Hong Kong to Dubai to the amount of about 75 million dollars.

If we talk about population, Hong Kong is considered an overpopulated city with high population density (6,480 people/sq. km), which indicates overloaded infrastructure and high housing prices. The average age of residents here is 41 years, and the population growth rate is 0.76%. Meanwhile, Dubai’s population density is not as high at 400 people/sq km, and the average age and growth rate are 27 years and 8%, respectively. It is understood that cities with predominantly young populations are more energetic and progressive.

Hong Kong’s economic performance has long allowed it to be a powerful financial center, with active trade and investment between China and the West, and a strong and independent financial system maximizes the protection of the interests of the region’s entrepreneurs. However, the changed geopolitical situation makes Western companies’ investments decrease, and public protests contribute to the destabilization of the social situation, scaring away even tourists. In this light, Dubai is attracting more foreign investment and has a more loyal policy for doing business. Among other things, the Emirates are ahead of Hong Kong in terms of security, per capita income and even natural resources. The unemployment rate here is only 0.4%, compared to 3.2% in Hong Kong. 

The climate in Hong Kong is tropical with high humidity, while in Dubai it is dry with a higher average temperature. However, the amount of greenery in the regions is not very different, thanks to the large number of parks and squares in the UAE. 

Comparing prices in the cities shows that Hong Kong is more expensive in most parameters: housing, groceries, education. Dubai turns out to be more affordable to live and has a higher average salary. 

As a result, Dubai is the most promising and comfortable both for doing business, making investments and for living.

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