Why Dubai and Bahrain's luxury Islands are the new playground for India's billionaires
TL;DR:
Ultra-wealthy Indians are discreetly investing in
private island properties
in
Dubai
and
Bahrain
purchasing multi-million-dollar villas and plots in developments like Amali (World Islands), Amwaj, Reef, and
Durrat al-Bahrain
.
These investments offer freehold ownership, lifestyle privacy, and capital growth, often without public disclosure.
With geopolitical stability, no taxes, and rising demand, Gulf island assets have become a quiet
investment
trend among India's elite.
Dubai's 'Amali' Islands: The Taste of Luxury
Dubai's ambitious World Islands development was impulsively revived in late 2022 by billionaire Ali Sajwani. He paid over USD 130 million for two of the artificial isles, Relaunching them as 'Amali', outfitted with 24 ultra-luxury villas, each priced between USD 14 and 34 million.
Units were sold to wealthy buyers consisting Europeans, Russians, and Indians among them.
This mirrors a broader trend: in 2023, Dubai sold 431 properties priced over USD 10 million, totalling USD 7.6 billion, more than any other global city. With no personal income tax and heightened security, Dubai's island assets are seen as elite retreats and solid investment plays.
Bahrain's Freehold Islands: Amwaj, Reef, Durrat Al Bahrain
Amwaj Islands
Bahrain introduced Amwaj Islands in 2002 as its first freehold zone for expatriates.
The archipelago spans 4.3 km² and hosts luxury apartments and villas along with marinas and retail amenities. Property listings show prices from USD 98,000 to over USD 2.26 million for apartments. Villas typically trade between USD 600,000 and USD 928,000. Indians, among other expats, are buying quietly for both residency and seasonal retreats.
Reef Island
Next to Bahrain's capital Manama lies Reef Island—a single man-made isle of 0.7 km² featuring high-end residential towers, villas, a yacht club, and retail spaces.
Its development cost, largely financed by private and government collaboration, is reported at very high. While floor-rate data are scarce, it competes with Amwaj in standing and exclusivity.
Durrat Al Bahrain
Durrat Al Bahrain is a luxury artificial archipelago in southern Bahrain, comprising 15 islands shaped like crescents, fish, and atolls. It features beachfront villas, luxury hotels, marinas, and golf courses, designed to attract high-net-worth residents and tourists.
Why Indians Are Buying Gulf Islands
Freehold → Permanent Residency
Gulf ownership rules especially in Bahrain permit expatriates to own freehold property, unlocking long-term or renewable residencies with the purchase of island real estate. For ultra-wealthy buyers seeking lifestyle and stability, this is a major draw.
Privacy, Prestige, and Lifestyle
Luxury islands are ideal for retreats offering privacy, yacht access, and gated communities with upscale amenities . The lack of public records for buyers keeps investment discreet, appealing to those avoiding glare or public tax scrutiny.
Diversified Investment
Indians have invested USD 4.3 billion in Dubai property during 2023, second only to Saudis. Islands serve as alternative asset classes with potential for long-term capital appreciation and customisation unmatched by mainland condos.
Gulf Stability and No Tax
GCC stability, zero personal tax, and economic diversification (post-Oil Vision/2030) further strengthen the appeal of Gulf island assets for high-net-worth individuals.
Risks and Considerations
High Maintenance & Development Delays
Island projects come with upkeep and infrastructure costs.
Durrat owners pay a hefty amount annually for maintenance.
Legal and Market Risks
Developments like Dilmunia lag behind expectations. Unsold units are high, and prices may fluctuate if oversupply occurs. Gulf property cycles could challenge exotic asset liquidity.
Environmental Concerns
Building artificial islands impacts marine ecosystems, and projects must meet strict environmental standards to gain approval.
Expert Insights & Buyer Profiles
Real Estate Analysts
Investment analysts attribute the resurgence of high-end island development to global instability.
Prices exceed US costs, but low tax and open ownership amplify appeal.
Developer Strategies
Dubai's decision to sell ultra-luxury villas on World Islands indicates confidence in niche markets catering to high-net-worth buyers. In Bahrain, projects like Tala Islands include golf courses, marina clubs, and entertainment facilities totalling USD 110 million in investment.
Indian Buyer Trends
Buyer privacy is critical; many Indians invest through offshore entities.
Narratives in forums note a mix of full-time relocations and vacation investments with smaller, 2-3 bedroom units in gated communities favoured .
Luxury islands off Dubai and Bahrain are acting as a discreet, tax-efficient investment and lifestyle pivot for affluent Indians. With high-end villas, marinas, and curated communities, these islands offer prestige and flexibility. Still, buyers must weigh maintenance costs, environmental issues, and market oversupply.
For those with substantial wealth and a desire for a private beachfront refuge in a stable, tax-free jurisdiction, these islands are emerging as Gems of the Gulf.
FAQs
Q: Can Indians freely buy on Gulf islands?
Bahrain and select Dubai zones allow freehold ownership for expats; titles and visa benefits apply at certain thresholds.
Q: What price ranges?
Dubai island villas: USD 14–34 million. Bahrain apartments: USD 100k–2.3M; villas: USD 600k–930k.
Q: What ongoing costs can buyers expect?
Annual maintenance/HOA, energy, security, marina, taxes may apply.
Q: Typical buyers?
High-net-worth Indians with global mobility, seeking luxury retreats, or second homes often as tax-efficiency and capital diversification measures.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
UPI surge: India leads the world in fast payments; 18 billion monthly transactions power growth
AI image India has become the world's top player in real-time digital payments, largely due to the rapid growth of the Unified Payments Interface (UPI), according to a recent International Monetary Fund (IMF) note titled 'Growing Retail Digital Payments: The Value of Interoperability'. Launched in 2016 by the National Payments Corporation of India, UPI has revolutionised the country's payment ecosystem by enabling users to link multiple bank accounts to a single mobile app and make instant transactions with ease. It has not only simplified peer-to-peer payments but also enabled millions of small businesses to accept digital payments at minimal cost. According to data from the Press Information Bureau (PIB), UPI now processes over 18 billion transactions every month, accounting for 85 per cent of India's total digital payments. In June alone, the platform recorded 18.39 billion transactions worth Rs 24.03 lakh crore — a 32 per cent increase from June last year. With 491 million users and 65 million merchants onboard, UPI connects 675 banks through a single digital framework. 'This shift has taken India away from cash and card-based payments and pushed it towards a digital-first economy,' noted the PIB in its latest background series. 'Millions of individuals and small businesses now rely on UPI for safe and low-cost transactions. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get Your Handmade Phone Case Now [Limited Offer] Buy Now Undo By making payments quick and accessible, UPI has become a powerful tool for financial inclusion.' The platform's global footprint is expanding as well. UPI is now operational in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its debut in France marks UPI's first foray into Europe, allowing Indians there to pay seamlessly without the usual hassles of foreign transactions. India is also pushing for UPI to be adopted within the BRICS grouping, which now includes six new member nations. As per the PIB, such an expansion 'will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments.' The journey to this digital success was built on a strong foundation of financial inclusion. The Jan Dhan Yojana was a key enabler, bringing over 55.83 crore people into the formal banking system as of July 9. These accounts not only offer a secure way to receive welfare benefits but also encourage saving and digital financial habits. 'These figures show more than just numbers. They reflect trust, convenience and speed. Every month, more individuals and businesses choose UPI for their payments. This growing use is a strong sign that India is moving steadily towards a cashless economy,' the PIB added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
an hour ago
- Mint
Opening a demat account is a pain for NRIs. Zerodha and others are trying to simplify it.
It isn't easy for non-resident Indians (NRIs) to invest in India. Opening a demat account with a broker, for instance, requires you to fill in forms that runs into several pages, courier them to your broker after rectifying any errors, and find authorities in your country of residence to notarise original documents. How iron out such issues, Zerodha and Angel One have been working with Rupeeflo, a Bengaluru startup. Other brokers are also looking for ways to simply the process and encourage more NRIs to invest. What are the main hurdles? Opening a demat account requires an NRI to fill out forms, scan and email them to a broker for review. If the broker finds no errors, he asks the NRI to courier the form to the official address for processing. This can be cumbersome. 'The client is required to physically sign the form. If a soft-copy validation is rejected, they need to rectify and reshare it with us," said Kazi Rahman, head of NRI sales at Zerodha. NRIs also need to get their KYC documents verified. These include passport, foreign address proof, and PAN card. If the NRI is not in India at present, he can do this by having his documents notarised in his residence country and couriering them. If the NRI is in India, he can visit the broker's branch office with his notarised documents, submit the documents and open his account. Brokers such as Zerodha have also started to allow this through Aadhar-based e-sign facility. The client can digitally upload his documents along with his immigration details to establish his presence in India and then e-sign through Aadhar. Digital process Rupeeflo is working with brokers to create a digital-first process for NRIs to make this easier. Once a users upload his PAN card, passport and address proof, the platform's optical character recognition technology automatically extracts the information, checks the authenticity of the documents against official databases and validates them in real time. It also fills up most details in the form automatically, directly extracting it from client's documents. The NRI can review the application form and fill in the remaining details such as employer, occupation and nominee. Next comes digital notarisation, for which Rupeeflo has partnered with several public notaries in various countries. 'The NRI connects with the notary on the platform through video call, where the latter conducts the process in accordance with their jurisdictions' specific regulatory norms and accordingly notarises the documents," said Dharmendra Maurya, co-founder of Rupeeflo. This digital notarisation is done in foreign jurisdictions, where there are guidelines for it. However, this is a regulatory and legal grey area that needs more clarity. More on that later. Once the documents are notarised, the NRI can download both the application form and the notarised documents. After signing in required fields on the application form (wet signatures are still required) and the KYC documents, the user can schedule a courier pick-up on Rupeeflo. The form and the notarised documents are then sent to the broker's operation centre for account opening. Digital notarisation costs anywhere fro $20-40 per document. The courier charges for pick-up and delivery are $40-50. Total charges depend on the NRI's country of residence. "Opening a demat account as an NRI still involves considerable friction—physical forms, notarised documents, and courier logistics,"Nishant Jain, chief business officer - assisted business from Angel One. 'We have simplified this journey by accepting digitally notarised documents, removing key friction points and enabling NRIs to onboard faster and more securely," he added. Regulatory grey zone The current regulations allow NRIs to get their documents notarised abroad. However, there is no explicit rule that allows digital or remote notarisation. Two sources confirmed that CVL KRA has given email confirmation to Zerodha on its digital notarisation process. However, there is no explicit notification by CVL KRA or the Securities and Exchange Board of India on this. Mint couldn't independently verify the e-mail confirmation from CVL KRA. "Strict implementation of Indian legal provisions would require physical presence of an individual before the notary. The notary needs to see the original documents, verify the identity of person face-to-face, before putting his own seal and stamp certifying it as a 'Sworn before me. Attested true copy'," said Shashank Agarwal, an advocate at Delhi High Court. 'The Notaries Act, 1952 is silent as regards e-notarisation. The Notaries Rules, 1956 do not address or specifically deal with the acceptance or legal validity of notarised electronic documents. The Notaries Act, 1952 governs traditional notarization, and documents still need to be notarised 'in person" to be valid," said Yogesh Chande, partner at Shradul Amarchand Mangaldas. At GIFT City, which is regulated by the International Financial Services Centres Authority (IFSCA), fintech companies conduct face-to-face KYC to onboard NRI clients. For instance, Belong, an NRI-focused payment service provider, has business facilitators in the UAE who meet NRI clients personally and verify their documents to comply with KYC guidelines. The current rules allow employees of regulated entity or agents acting on behalf of the regulated entity to use the 'original seen and verified' (OSV) process for KYC.
Economic Times
2 hours ago
- Economic Times
India tops global fast payments with UPI processing 18 billion transactions monthly
Getty Images Representative image. India has emerged as the global leader in fast payments, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. At the heart of this transformation is the Unified Payments Interface, better known as UPI. Launched in 2016 by the National Payments Corporation of India, UPI has changed how people send and receive money in the country. It brings all your bank accounts together in one mobile app. One can transfer money instantly, pay merchants, or send funds to friends with just a few taps. Its appeal lies in its speed and ease of use. Today, UPI processes over 18 billion transactions every month in India. "This shift has taken India away from cash and card-based payments and pushed it towards a digital-first economy. Millions of individuals and small businesses now rely on UPI for safe and low-cost transactions. By making payments quick and accessible, UPI has become a powerful tool for financial inclusion," Press Information Bureau (PIB) said in its backgrounders series on Sunday. The scale of UPI today is remarkable. In June alone, it handled over Rs 24.03 lakh crore in payments. This was spread across 18.39 billion transactions. Compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one UPI system now serves 491 million individuals and 65 million merchants. It connects 675 banks on a single platform, allowing people to make payments easily without worrying about which bank they use. Today, UPI accounts for 85 per cent of all digital transactions in India. Its impact goes beyond national borders, powering nearly 50 per cent of global real-time digital payments. "These figures show more than just numbers. They reflect trust, convenience and speed. Every month, more individuals and businesses choose UPI for their payments. This growing use is a strong sign that India is moving steadily towards a cashless economy," the PIB report success story does not stop at home. UPI is making its presence felt across borders. It is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its entry into France is a milestone because it is UPI's first step into Europe. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign to the PIB backgrounder, India is also pushing for UPI to become a standard within the BRICS group, which now has six new member nations. "If this happens, it will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments," it rise as the world's leading real-time payment system was not an accident. It is the result of years of planning and investment in digital infrastructure. Financial inclusion was the first big step. The Jan Dhan scheme opened bank accounts for millions who had never used formal banking before. As of July 9, over 55.83 crore accounts have been created. These accounts give people direct access to government benefits and a safe place to save money.
