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
The long-dormant World Islands project in Dubai was given new momentum in late 2022 when entrepreneur Ali Sajwani, along with his sister Amira, acquired two of the artificial islands, formerly designated as São Paulo and Uruguay. Rebranded as Amali Island, the development features 24 ultra-luxury beachfront villas, part of a larger USD 544.5 million (AED 2 billion) masterplan. Villas are priced from approximately USD 13.6 million to over USD 54 million, with 19 units reportedly sold by mid-2024. Buyers include wealthy individuals from Europe, Russia, and India.

Dubai’s ultra-luxury real estate market has surged to global dominance. In 2023, the city recorded 431 residential transactions exceeding USD 10 million, with a combined value of approximately USD 7.6 billion, the highest volume of $10M+ property sales worldwide, surpassing traditional luxury hubs like London and New York. With no personal income tax, a reputation for strong security, and a rapidly evolving infrastructure, Dubai’s exclusive island properties are increasingly viewed as both elite private retreats and resilient investment assets for the global ultra-wealthy.

Bahrain’s Freehold Islands: Amwaj, Reef, Durrat Al Bahrain

• Amwaj Islands
  

Amwaj Islands, launched in 2002 as Bahrain’s first freehold zone for expatriates, spans 4.3 km² and offers luxury apartments and villas, along with marinas and retail amenities. Property listings show prices ranging from USD 98,000 to over USD 2.26 million for apartments, while villas typically trade between USD 600,000 and USD 928,000. Indians have been among the early foreign investors in Amwaj Islands, with Indian investor M.K. Sivadasan reportedly becoming one of the first non-GCC nationals to purchase property there in 2005. According to the Gulf Daily News (GDN), Sivadasan was one of the first two non-GCC investors to officially register property ownership titles at the Land Registrar Directorate for Al Marsa Floating City, part of the Amwaj Islands development.

• 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

• 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
  

According to the Dubai Land Department, Indian nationals were the leading foreign real estate investors in 2024, responsible for over AED 35 billion (USD 9.5 billion) worth of transactions, making up approximately 22–23% of all foreign real estate purchases in the emirate.

• 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
  

Owners of villas at Durrat Al Bahrain pay an hefty annual service charge for upkeep of roads and shared infrastructure, excluding utilities, municipal tax, and other fees.

• 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
  

While Dubai’s sale of ultra‑luxury villas on the World Islands reflects its confidence in niche high‑net‑worth segments, Bahrain’s Tala Island project (part of Amwaj Islands) has seen a development investment of approximately USD 110 million, delivering beachfront villas, marina apartments, leisure facilities, private beach access, sports courts, pools, restaurants, and retail space.

• 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.

FAQ

• 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.