Cryptocurrencies, with no underlying asset, pose high risk to investors. According to data from crypto exchanges, there are approximately 1.5 crore Indians who have invested in cryptocurrencies holding Rs 15,000 crore
Indians investing in cryptocurrencies may be taking a highly risky bet in the absence of regulations by the Reserve Bank of India (RBI) and the government with respect to these instruments, said experts. Till regulations bring clarity, any type of crypto transactions should be banned in India, they said. “Be it as a medium of exchange, mode of investment/ assets, cryptocurrency dealings should be banned in India and should be made as a criminal offence,” said Madan Sabnavis, chief economist of CARE rating agency.
“Unless we have regulations and an official view on this, Crypto is no different from gambling,” said the veteran economist. The comment assumes significance at a time when investors are increasingly betting on crypto currencies.
Cryptocurrency is decentralised digital money, which works based on blockchain technology. Bitcoin and Ethereum are the poplar crypto currencies but there are thousands of cryptocurrencies in circulation.
Even as the Reserve Bank of India (RBI) and the Government have not formed an opinion on the crypto currencies, there are many Indians who have taken exposure in crypto market. According to data from crypto exchanges, there are approximately 1.5 crore Indians who have invested in cryptocurrencies holding Rs 15,000 crore. There are 350 startups who operate in blockchain and crypto. Crypto exchanges, WazirX, CoinSwitch Kuber and other exchanges, have seen a big rush in demand from users and crypto exchanges are advertising heavily on investments.
Already, the RBI has raised concerns on crypto currencies. On March 25, speaking at the 7th edition of India Economic Conclave, the RBI Governor, Shaktikanta Das had said the central bank has flagged some major concerns to the Government about crypto currencies. “Both RBI and the government are committed to financial stability. We have flagged some major concerns to the government on crypto currencies. The government will come out with a decision sooner than later,” Das had said.
The RBI, in 2018, banned all banks from dealing in cryptocurrencies but a Supreme Court order overturned this ban on a plea by Internet and Mobile Association of India (IMAI). The court said that while the RBI has the power to regulate virtual currencies, in the absence of any legislation, the business of dealing in these currencies ought to be treated as a legitimate trade that is protected by the fundamental right to carry on any occupation, trade or business under Article 19(1)(g) of the Constitution.
While the RBI is clearly not comfortable with the idea of cryptocurrency as a medium of exchange, the government’s stance on this issue is not clear. The government has proposed to present a Bill to regulate cryptocurrencies called The Cryptocurrency and Regulation of Official digital currency Bill, 2021. The Bill has provisions to make any dealings in cryptocurrency illegal. But there is no clarity yet on when this Bill will be introduced in Parliament.
Why people buy crypto?
There aren’t many attractive investment options in the present economic environment, where real interest rates have turned negative. With interest rate falling sharply, bank deposits have turned unattractive to the investors. Similarly, high volatility and a dull economic environment have made real estate, equity and mutual fund investments unattractive for HNI investors, prompting many of them to look at crypto bets.
Due to a mix of factors such as the COVID-19 crisis, the poor rate of returns on banking investments, cryptocurrency stands to gain in popularity as it is being seen with the potential to become a good investment alternative, like gold or real estate, if certain provisions are met, said Jaya Vaidhyanathan, CEO of BCT Digital.
“This is still far away, but it can happen over a period of time. We are going to see lack of trust from authorities till it is fully evaluated. Although Bitcoin has been seen with caution and distrust by authorities, its underlying technology, Blockchain, has a lot of advantages in today’s digital banking context as well,“ Vaidhyanathan said.
What if cryptocurrency gets banned in India?
Lack of clarity on regulation would mean that crypto investors may be facing high risk if the government decides against cryptocurrencies in India. Those holding crypto assets may face a sudden shocker if India decides to ban the cryptocurrency assets tomorrow, experts said.
“There is no underlying to the crypto currencies, so it is highly risky for anyone to use it as asset. You can’t certainly treat it as a mode of exchange. With high volatility seen in recent days, it is quite clear this is a speculative asset,” said Ashvin Parekh of Ashvin Parekh Advisory services.
“Also, there is a possibility of illegal elements using crypto for money laundering activities,” said Parekh. While big investors like Tesla founder Elon Musk can afford speculating in such assets, common investors may be facing high risk, Parekh added.
With the RBI not clarifying its position, banks have been wary about cryptocurrencies too.
“Central banks advocate the centralization of an economy and its banking system. Bitcoin or most cryptocurrencies, for that matter, are the opposite of that. They are not controlled by a country’s regulators or even governed by them,” said Vaidhyanathan of BCT Digital.
“Under such circumstances, it’s natural for regulators to be suspicious of them, leading to trading bans or tightened regulations. In 2018, a lot of Indians were trading in cryptocurrencies, convinced of its benefits. But soon, this was questioned and outlawed,” Vaidhyanathan said.
A senior banker, who didn’t want to be named, said banks are staying away from crypto transactions since the RBI hasn’t clarified its position officially. “For us, the RBI is the apex authority. Till the time, the RBI doesn’t clarify its position, we will not touch this segment,” said the banker.
Indian investors taking advantage of discounts and post-handover payment plans
Cash-rich Indians have been re-entering Dubai property market in large numbers after a Covid-induced break, lured by attractive discounts and post-handover payment plans, property consultants say.
The recent months have also seen secondary markets in the UAE gaining traction with expat Indians, who intend to use the market conditions to upgrade from being a tenant to an owner, the consultants said.
The second quarter of the current fiscal year has seen a demand pick up from Indian investors. Indian business communities, who are frequent travellers to the UAE or want a trophy asset, have also taken advantage of the price softening to close some major deals during this period,” he said.
Consultants in India also confirmed the rising interest among wealthy Indian investors to take advantage of the current market conditions in Dubai.
Industry experts feel the upcoming IPL (Indian Premier League) in Dubai is also bound to reignite Indian investors’ interest in the Dubai property market.
Dubai has been a second home to many rich and famous Indians – Bollywood icons Shahrukh Khan and Shilpa Shetty among them – for many years.
“Indians have been favourable to Dubai as an international real estate investment destination. In the past few years, Indians ranked third amongst top nationalities investing in Dubai,” Sood said.
Ashu said given the market conditions and sentiments, majority of Dubai based developers are now offering attractive discounts to lure customers, including overseas customers.
“There is a possibility of additional deal sweeteners in terms of furnishing options and DLD waivers which are being brought to the discussion tables. The clear trend is that developers are ready to be flexible to adjust to the demands of the buyers as long as it is within reasonable limits,” he said.
Sood also pointed out the latest data released by the Dubai Land Department to support recent turnaround in market sentiments.
“The Dubai Land Department recently declared transactions exceeding Dh 24.5 billion for Q2 which takes the half yearly transactions value to Dh 72.5 billion.
“This represents more than 22,000 deals and Indians being one of the top investors in Dubai have contributed a fair share of that,” he says.
According to property consultants, the security offered by Dubai to investors is what makes its market so lucrative to investors. Backed by a strong RERA, the entire real estate value chain in UAE is protected against any fraudulent activities.
Dubai is a land of immense opportunities and it’s no different for the startup ecosystem. With no shortage of venture capital and technology at fingertips, Dubai is growing as the major place to breed top tech startups. The nation is taking huge steps to become the next silicon valley in east with several grants, technology conferences and pitching competitions. From the plethora of innovation, we have curated for you 30+ top startups in Dubai to watch out for.
Having Intel and Microsoft as partners, Avidbeam is a video intelligence and analytics platform that is deriving value from big video data. They have been serving various industries like automotive, smart cities, and retail, to name a few. The fact that they were the most promising Big Data startups (2017) and won the grand prize at CES Exhibition 2018 held in Las Vegas makes them one of the top startups in Dubai!
Meddy has made finding the best doctor in Qatar easy. From pediatricians, skin, dentists to general doctors, you can get all the information about them without going to the clinic. You can even know about various home remedies and doctors’ opinions via their blog!
Visit a place frequently? Get the best prices at the sites you frequent the most. Repeat is into growing local businesses and providing personalized pricing for brands you love repeating!
Whether its customer support, development work or marketing/sales – Ziwo provides API based Customer relationship management (CRM) system for making communication all simple. They boast clients like Cleartrip, UAEXchange, and deliver, to name a few, making them one of the top startups in Dubai 2019!
Almentor is one of the top startups in Dubai and the world’s largest Arabic content for video based continuous learning. It’s an e-learning and professional people development platform serving the Middle East, specifically with 412,512 learning experiences and counting!
Founders:Abdelrahman Fahmy, Hesham Heikal, Husni Khuffash, Ibrahim Kamel, Ihab Fikry
Total Funding: $ 4.5M
Founding Year: 2016
Category: Broadcasting, E-Learning, Education, Marketplace, Online Portals, Video
The list offers personalized designer fashion and luxury products from the world’s best boutiques – all in just one swipe. Making an impression with luxury fashion has become lighter in pockets now!
Unifonic is one of the top startups in Dubai that makes cloud communications more accessible, cost-efficient, and simpler to implement. 5000+ happy clients have been building powerful communication capabilities like SMS, voice, verification, etc. into their systems using secure & well defined APIs.
Instabug empowers mobile teams to release their products with confidence through the comprehensive bug and crash reports, in-app surveys, and real-time user feedback. Currently being one of the startups in Dubai, they have more than 25,000 Mobile Teams Rely on Instabug for their bug fixes!
Jamalon is the largest online bookstore in the Middle East, offering more than 9.5 million titles of Arabic and English books with home delivery. Their membership is completely free, and they also feature weekly deals that you wouldn’t want to miss!
Smartphones are a thing of the past as we have a new technological revolution with smart glasses! Amal Glass is a smart glass with around 28 features like weather, recorder, maps, etc. that is changing the lives of virtually blind in the UAE. Being winners of the Arab Innovation Network, Supernova challenge, and having won awards from World Economic Forum makes them one of the startups in Dubai to look forward to!
Aumet allows you to access to 50,000+ medical manufacturers that you don’t usually meet at trade shows and exhibitions. They have covered all major continents and regions intending to be a partner and not a broker! Currently signed agreements range from $5.5 million, making it one of the startups in Dubai!
Founders: Ashraf Samhouri, Jamal Abu Samra, Mohammad Issa, Tariq Khader, Yahya Aqel
Total Funding: $ 75K
Founding Year: 2016
Category: Health Care, Hospital, Manufacturing, Medical
You can call it the Netflix for Arabs! They are one of the startups in Dubai that offer subscription video on demand (SVOD) as a service. They stream thousands of blockbuster Hollywood movies, TV shows, documentaries, kid’s entertainment, and dedicated Arabic and Bollywood content – to 19 countries across the Middle East and North Africa!
Clearly aims to change the world of banking altogether – from investing, saving to spending. Clearly, you can have your bank in your pocket with no branches. With invite-only access, they are clearly one of the most promising top startups in Dubai 2019!
It’s all great when you buy luxury, but what if you want to sell it back? The Luxury Closet is a global online boutique for buying and selling new and pre-loved luxury items like handbags, clothes, watches, and jewelry. They are one of the top startups in Dubai in the luxury segment that boast more than 16,000 treasures from top luxury brands such as Louis Vuitton, Chanel, Van Cleef, and Arpels, Cartier, Rolex etc.!
Planning a holiday can be cumbersome. Still, we have Holidayme to provide customized travel packages to customers across the Middle East. You can design holiday packages, hotels, sightseeing activities, and transfers for destinations all over the world!
Did you know you can save money from waste – literally monetize thrash? Bikya is one of the top startups in Dubai with being the first platform in Egypt and the Arab world to exchange inorganic waste for things you want! They have special offers for companies and shops as well.
An awarded startup by Forbes, Souqalmal is one of the top startups in Dubai for financial services. They are the go-toto comparison site for Credit Cards, Mortgages, Personal Loans, Car Loans, Car Insurance, Health, and Travel Insurance.
InvoiceBazaar is one of the top startups in Dubai that aims to bridge the supplier-buyer relationship by digitizing their manual transactions. This digitization helps in providing working capital finance to an SME.
Altibbi is a medical community housing more than 85,364 trusted doctors making it one of the top startups in Dubai for healthcare. They provide immediate medical consultations via high-definition phone calls or personal conversations at any time. In addition, they give the most significant comprehensive Arab medical content for all topics specialized in medicine and health!
Beehive is one of the top startups in Dubai, which is also MENA’s first regulated peer to peer lending platform.It provides short-term finance for SMEs with Invoice Finance. They directly connect businesses with investors willing to lend against their invoices. They also have an eligibility test to check if the SME is fundable!
Health at hand provides an affordable, accessible, and confidential platform to connect with doctors instantly. They offer video consultation as a subscription service for citizens as well as B2B packages for businesses.
Seez is a used car platform for the UAE, Kuwait, and KSA market providing fair market price and depreciation of any car. You can search for new and used cars as well as cars for lease and benefit from price negotiation. They also provide daily, updated hot deals!
Derq is one of the top startups in Dubai that aims to provide a safer and smarter road powered by patented AI and predictive analytics. Having graduated from techstars and featured in the World Economic Forum as startups in Dubai, they have been successfully making travel safe!
Getting home services is a real task – but Service Market is one of the top startups in Dubai that is helping us find the right helper! With 25+ home services listed, they have been featured in Entrepreneur, Forbes, and leading Arab publishing!
Bulk Whiz gets your groceries sorted at bulk prices instead of the full price! Just order from 20+ categories available instantly with delivery. They also share deals as high as 80% off!
Sprii is a global ecommerce platform for mothers with amazing deals! They have a range of products like toys, cradles, utensils, etc. that an aspiring or present mum would want to have. You can even request a product, and they will get it delivered for you.
Your search of home technicians ends with one of the startups in Dubai – ajeer. They provide access to best home maintenance services at low rates making your home life more comfortable.
Get exclusive access in the immersive 360 degree experience of major events happening around! 360 VUZ wants you to be anywhere you want to be from anywhere in the world from your phone. They are one of the startups in Dubai with Samsung, L’oreal etc as partners and featured in Forbes, CNN, Reuters etc.! They have also been invested by the Government of Dubai, Plug and play, vision 2030 Dubai and Dtech!
A readers delight – Abjjad is an Arabic ebook platform having 1,000,000 Arab readers. They are one of the top startups in Dubai having won ‘Business Women category’ at Union Bank award in 2015, Golden award for best online community, and earned $ 160,000 from 45 investors around the world!
We all want jobs we love – and Bloovo aims to match you with jobs you will enjoy passionately in Dubai, UAE, and gulf region! They are one of the top startups in Dubai in HR tech space, having featured with Forbes, Entrepreneur, CNBC, etc.
State of the art cleaning services is just a click away with MATIC. It’s the largest SaaS based marketplace to connect you with highly qualified cleaners across the Middle East. They raised $3 million in Series A from MEVP and have completed more than 1,50,000 bookings!
Noon is a leading ecommerce platform for the Middle East region. From home, beauty, kitchen, or groceries – they have covered it all to be your go-to site for shopping. They feature exclusive tempting deals that are huge money savers!
From healthcare to automobile or hard tech like Augmented reality or virtual reality – Dubai is working very hard to bring it’s ecosystem as one of the best startup breeding grounds in the world. There is no best time, but right now, to start a business and become one of the top startups in Dubai!
British capital is attracting Dubai buyers who are looking for a second home to diversify their investments
UAE buyers are flocking to the London property market as the UK records its highest ever sales.
The British capital is attracting Dubai buyers who are looking for a second home to diversify their investments, according to experts.
UK property site Rightmove recorded more than £37 billion ($49 billion) of property sales between July 12 and August 8 – the highest ever agreed in a month since it began tracking the housing market more than a decade ago.
“The London market has seen increased interest from UAE buyers,” Mayson, head of international residential sales at property firm Prinn Middle East told Arabian Business.
“Given the huge effect of coronavirus on the UAE’s tourism industry and the weak oil price, locals are diversifying their investments into safe places around the world – and London is top of that list,” he said.
Prinn said London is the beneficiary of “years” of pent-up demand being released into the market following the political uncertainty of Brexit and the country’s three-month coronavirus lockdown.
“Initially during lockdown we saw the brakes put on UAE sales but since Ramadan, we have seen record interest – mainly from owner-occupiers.”
Ashu Director at Brisk Avenue said ” He predicts a slew of deals once flights between the UK and the UAE are fully opened up and quarantine rules are relaxed.”
“Owner occupiers want to physically see and touch the properties but unfortunately they haven’t been able to do that right now,” he said. “I expect there will be a lot of transactions once flights have opened up.”
In an additional boon for global buyers, the UK government has lifted the threshold at which people start paying stamp duty for residential property from £125,000 to £500,000.
The change, effective immediately, is a temporary measure designed to boost the housing market and the measure will remain in place until March 31 2021 next year.
Properties over £500,000 will pay stamp duty, however the rising of the nil rate band means they will pay £15,000 less than before.
“The removal of stamp duty has given a shot-in-the-arm to the market,” said Ashu,“It has galvanised UK buyers and there is a follow-on international galvanising effect. London is still a very safe market.”
According to data, UAE nationals are drawn to higher end properties valued at £1.5 to £2 million plus. However, non-native UAE expats are purchasing less costly stock from £700,000 upwards as buy-to-let investments.
Prinn said UAE buyers are showing interest in the Kings Road and Battersea areas, as well as White City – which is home to one of London’s biggest shopping malls.
“UAE buyers tend to look for larger properties for their families,” he said. “They are also seeking luxury touches, such as concierges, swimming pools and underground parking.”
Ashu said he has noted increased UAE, Saudi Arabian and Kuwaiti buyer interest in the firm’s St John’s Wood and Kensington developments.
“There is a lot of interest from owner occupiers,” he said. “Registrations and transactions are up on this time last year. It’s been a welcome surprise.”
According to Brisk, the COVID-19 pandemic has caused buyers to think about their lives in a “more long-term” manner. This trend is driving owner occupation interest, whether it’s full-time homes or pied-a-terres, he said.
Andrew Hawkins, director at Rocket Properties – the developer behind The Atlas Building in London’s Shoreditch – said the area is attracting significant Arab interest.
“Dubai dwellers are used to high-rise developments like ours,” he said. “ Culturally they are comfortable with high-rise living.”
Hawkins added that Shoreditch – close to the City of London and Old Street – has particular appeal for UAE buyers looking at lower price points with the opportunity for higher yields and capital appreciation.
Prinn said he remains bullish on the London property market going into 2021.
“London is the number one choice for Middle East investors because it outperforms every other market,” he said. “I predict that Gulf interest will remain high, particularly if sterling remains good value for international buyers.”
A total of 29 development projects worth Dh2 billion have been approved in Dubai to add 8 million square meters of green spaces and parks to the Emirate’s residential and commercial areas.
“We are pressing ahead with developing our city, improving the quality of our lives and making the future of the UAE,” said His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, while announcing the new projects.
In a series of tweets, Sheikh Mohammed also announced Dh4 billion project to produce energy by processing waste in Dubai. The project can accommodate 1,000 garbage trucks per day and generates enough energy for 135,000 homes. “Dubai is a clean city, its energy is clean, its neighborhoods are clean, and its energy resources must be kept clean,” Sheikh Mohammed said.
“We have also approved a project to develop 12 kilometers of Dubai’s beaches over an area of one million square meters from Al Mamzar Beach to Umm Suqeim II at a cost of Dh500 million. We will develop more swimming areas, better running paths and longer bicycle streets. The quality of life in Dubai is the secret of loving life in the Emirate,” Sheikh Mohammed added.
The Vice-President said the UAE is committed to implementing innovative projects that optimise use of resources and solve critical challenges as part of the country’s strategy to ensure environmental sustainability.
A key element in the UAE’s development model, environmental sustainability is reflected in all initiatives and projects launched by government entities, independently or in partnership with the private sector, Sheikh Mohammed said. Sustainability is key to the UAE’s future readiness, he added. “Providing a clean environment is at the heart of our efforts to advance development and provide a high quality of life both now and in the future. We have adopted global best practices and implemented innovative projects to preserve our environment and protect the health and safety of people in the UAE,” Sheikh Mohammed noted.
Sheikh Mohammed’s comments came during a review of Dubai Municipality’s environmental and sustainability projects being developed at a cost Dh6.6 billion. Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates airline and Group attended the review.
Ready when you are
Sheikh Mohammed reviewed a project to build the Dubai Centre for Waste Processing in the Warsan area of Dubai. The Dh4 billion plant, one of the largest in the world in terms of waste processing capacity, will operate without any negative impact on the environment. Capable of processing 5,666 tonnes of municipal solid waste per day and 1.9 million tonnes of municipal solid waste per year, it also has the capacity to generate 200 megawatts of energy annually, which can serve the requirements of 135,000 residential units. The first phase of the project will be completed in 2023 and the entire project will be completed in 2024.
Director General of Dubai Municipality Eng. Dawood Al Hajri briefed Sheikh Mohammed on the new plant that is one of Dubai’s largest infrastructure projects. Created to serve the emirate’s current and future waste management and green energy requirements, the project consists of a waste weighing unit, 15 reception points, five furnaces, a steam and power generation zone, 10,000 gas processing units, 27 gates and a zone for extracting metal from incinerated waste.
Sheikh Mohammed was also briefed on a Dh500 million project to develop public beaches in Dubai. The project aims to develop one million square metres of beachfront area from Al Mamzar beach to Umm Suqeim 2. The project will be implemented in three phases — the first covers 4,250 metres of beachline extending from Al Mamzar Creek beach to Al Mamzar Corniche, the second covers 2,150 metres of beachline extending from Jumeirah Beach to Al Shorouq, and the third phase covers 6,015 metres of beachline in Umm Suqeim 1 and 2.
The project aims to revitalise the beachfront and increase swimming areas. Dedicated areas for water activities and jogging and cycling tracks will be provided as part of the overall plan to promote a fitness culture and healthy lifestyle among the city’s residents.
Ras Al Khor Wildlife Sanctuary development project
Sheikh Mohammed was also briefed on the Dh100 million Ras Al Khor Wildlife Sanctuary development project, which seeks to enhance the sanctuary’s ecosystem and biodiversity. The project will increase wetlands in the sanctuary by 20 hectares and expand green cover by planting mangrove trees in a 100-hectare area. Service facilities and entertainment amenities will also be built as part of the project.
Green Dubai Project
Sheikh Mohammed also reviewed a project to develop the first open garden on Al Mamzar Creek that forms part of the Dh2 billion Green Dubai Project. To be implemented over a four-year period extending from 2021 to 2024, the project is set to add 8 million square metres of green spaces. The project forms part of a broader plan to expand the city’s green spaces, increase the percentage of green areas in development projects and raise Dubai’s global ranking in this area.
