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Unless you have been living on a remote moon of Saturn for the past few months, you cannot help but be aware of the state of turmoil of the world’s credit markets. We all know well enough by now the US sub prime market is to blame, a term that – let’s be honest – a year ago none of us would have been overly familiar with.

The crisis there has a long way to go. The 15 largest homebuilders in the US are saddled with $7.75bn in debt to be repaid through 2009. This contagion has now spread to Europe as well, with UK prices falling 0.6% in September (Halifax Building Society). This is the first decline this year and probably not the last.

I could easily go on ad infinitum about the state of the UK, European and US markets, but a far more interesting exercise is to look at alternative investments for a UK audience, earning and saving in (strong) pounds sterling and looking for an opportunity to capitalise on that. Add to this a willingness to invest in emerging markets and the opportunities for capital appreciation, and it gets more enticing.

Understandably, there is always a reticence when investing overseas – a lack of familiarity with the location, language, culture, procedures, legal system etc. But if one can overcome these perceived risks or hurdles through developing your own knowledge, visiting the country or region and dealing with a professional agency, then a fantastic opportunity for hassle free investment awaits.

In the UAE – specifically in Dubai and Abu Dhabi – there is furthermore one crucial element that cements the benefits of investment here. The UAE Dirham is pegged to the US Dollar at AED 3.68 to the $1. This means that with the current strength of the pound, you will get around AED 7.5 for your pound! (correct at time of going to press). When I first moved here 4 years ago, a pound would have bought you only AED 6.1, and that was held to be exceptional. Never has there been a better time to buy property in Abu Dhabi and Dubai than now.

Of course, there exist the pessimists who worry that the global squeeze on credit will have a negative impact. Not so says Tim Searle of Globaleye Group: “In the short term it is not going to have any effect whatsoever [in the UAE] because we don’t have a sub prime market.” (quoted in Property Weekly Magazine, Dubai)

Mortgage offering in the UAE is still in its infancy, but the number of lenders coming to market every year is practically doubling – including many big UK high street names. In a time of uncertainty in the world markets, their faith in the UAE is a good indicator of how they feel the market is going here, and something we should perhaps all share.

An overseas mortgage is similar to a mortgage you might take out when buying property in the UK. However there may be different taxation levels, fees or restrictions to take into consideration when purchasing abroad. Many U.K. lenders now also offer mortgages on overseas properties and it may be cheaper or more practical to take out a mortgage in the U.K. It may even be beneficial to raise funds on a property you own in the UK rather than a property abroad. There are many pros and cons to consider before making a decision.

Important things to consider when taking an overseas mortgage include, but are not limited to:

• Taxation levels vary from country to country and some countries charge extremely high or low levels. Professional advice is important on this subject.

• Lenders based in the country of purchase may have local knowledge that will help in navigating the local tax laws and procedures.

• Foreign exchange rates can vary from time to time and a change in the exchange rate between the pound and local currency could heavily influence the actual cost to you. A mortgage based on the currency you currently earn is a good idea, unless you are going to be earning rental income in the local currency. If that is the case, a local currency mortgage may be more appropriate.

• A mortgage agreement written in a foreign language you do not speak may well hide important information. It is vital not to sign any agreement you do not understand. Either have a local solicitor translate it, or opt for a UK mortgage.

• Most foreign mortgage companies do not allow mortgages based on more than 70% of the property value, although this varies from country to country.

Local mortgage laws, particularly in emerging markets are subject to rapid changes. For instance, the Turkish mortgage laws and restrictions on foreign property ownership have recently changed dramatically. It is now possible to obtain an 80% mortgage spread over 20 years and Turkey is experiencing a property boom. Previously, long-term mortgages were illegal and the property market was severely handicapped. The recent changes have created a flood of foreign investment.

There are a number of independent British companies offering a range of mortgage products both from the UK and foreign sources. Time taken to consult with a professional advisor familiar with mortgage products available from all over the world is likely well spent. Look for members of The Association of Relocation Professionals and The Federation of Overseas Property Developers, Agents and Consultants. Both organizations have a strong code of ethics and members are obliged to comply with strict guidelines.