Why Dubai and Bahrain’s luxury Islands are the new playground for India’s billionaires

9 hours ago 5

ARTICLE AD BOX

Ultra-rich are discreetly buying luxury island properties in Dubai and Bahrain for privacy, tax-free living, and exclusive lifestyles, reshaping the Gulf’s elite real estate scene/Image: Archello

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

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.

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 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.

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.

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.

Building artificial islands impacts marine ecosystems, and projects must meet strict environmental standards to gain approval.

Expert Insights & Buyer Profiles

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.

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.

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.