Zins-Arbitrage 2025: Why Dubai Mortgages Beat the Dollar Hammer

As Jackson Hole Warns of High Rates, Dubai Offers the Real Opportunity

As Federal Reserve Chair Jerome Powell opens the 2025 Jackson Hole Economic Symposium (August 21–23) under the theme “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy”, global markets brace for hawkish signals. But while bond traders dissect Powell’s tone, investors in Dubai are already capitalizing on a macroeconomic reality beyond the Fed’s control.

Despite tightening in Western economies, the UAE dirham, pegged to the US dollar, enables consistently low borrowing rates. Leading banks in the Emirates continue to offer five-year fixed mortgage rates starting at just 2.5% — particularly for Golden Visa holders and priority clients.

Combined with 0% income tax, 0% capital gains tax, and a flat 4% real estate transfer fee, Dubai presents a financing environment that Western investors can only envy.

“We’re locking clients into 25-year mortgages below core eurozone inflation — a historical spread you only see once a decade,”
says Michael Menter, Founder of InvestMenter Real Estate L.L.C.

A Numbers Game Western Markets Can’t Win

Take a standard €1 million buy-to-let investment:

Financed at 2.8% in Dubai
Compared to 4.9% in Germany
The annual interest savings exceed €21,000, before tax.

Now factor in Dubai’s 0% tax on rental income, and the arbitrage becomes even more compelling.

With prime property prices forecasted to rise by up to 10% in 2025, driven by villa undersupply and population growth, investors benefit from both yield and capital appreciation.

Dubai: Where Cheap Leverage Meets Zero Tax

While Jackson Hole reminds investors that capital will remain expensive across the West, Dubai is delivering the opposite:

Sub-3% long-term debt
Tax-free rental income
Strong appreciation potential

“This is a rare arbitrage window,” says Menter.
“Lock in leverage, eliminate tax drag, and let Dubai’s fundamentals work in your favor. That’s the real Jackson Hole play — and Powell can’t close it.”