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Africans Channeling Billions into Dubai's Property Market

Africans Channeling Billions into Dubai's Property Market
Video Caption: 1 Diplo’s 2019 VMAs, Themed Suit

Nigerians have emerged among top foreign investors in the property sector in Dubai. The hundreds of Dubai properties linked to Nigerian political operatives are estimated to be worth well over $400 million.

There is a new investment trend that is bleeding Africa dry. Wealthy Kenyans, Nigerians and other Africans are flocking to buy property in Dubai, to cash in on the insane rental returns of up to 20% per year!

Nigerians have emerged among top foreign investors in the property sector in Dubai. The hundreds of Dubai properties linked to Nigerian political operatives are estimated to be worth well over $400 million.

But why are Africans pumping billions into Dubai’s real estate at the expense of Africa’s property market? The simple business reason – Dubai has created an investor-friendly climate with low interest rates, flexible financing, streamlined business setup, and guarantees that projects will be completed.

Meanwhile, back home in any African countries, our property markets have nosedived. Red tape and political instability (whether perceived or real) means that it can take 10-15 years just to recoup your initial real estate investment. No wonder the politicians are looking for greener pastures in Dubai!

Now, I'm not saying investing in Dubai is necessarily a bad thing. But it's a huge wakeup call that we need to get our house in order here in Africa to attract that investment back home.

Our politicians and leaders need to prioritize creating an enabling environment for businesses and investors to thrive. Streamline processes, stabilize policies, guarantee rule of law. That's how we develop our economies and create jobs for our people.

And let's be honest, a lot of the money being invested in Dubai likely comes from proceeds of corruption and abuse of public office here at home. It's a vicious cycle draining Africa.

If we clean up our governance and create investor confidence, all that capital could be channeled into uplifting our communities instead of building Dubai's skyline.

It's time Africa put its own house in order so our people can proudly invest at home, creating prosperity that benefits all our citizens, not just the elite few buying properties abroad.

That said, African politicians and individuals who invest corruptly acquired funds into Dubai’s real estate market must be named and shamed.   

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