An Expat in Dubai? Here Are The Investment Options For You!
Is the life of an Expat in the city of diversity treating you well? Yes?! To add on to your excitement – did you know along with the liberal business environment in Dubai, you are also offered dynamic investment opportunities?
There are numerous options to make the best investment for Expats. However, when it comes to investment plans in Dubai, it is a complex subject. Here is a guide for you that will help you provide a comprehensive insight into the available investment plans in Dubai.
UAE Investment Opportunities
The UAE is popularly known for the lavish lifestyle led by the people residing there. With the best of credit card offers, anyone will be tempted to live the best life. This is when investment comes in the picture. In such scenarios, investment plans in UAE play a big role in yielding a return on your funds.
Once you have accumulated some extra cash on the side, you should look for ways to make those funds work for you. Here are some options to consider putting your money in:
When you think about investment, the first thing that switches the bulb on is stocks! Let’s start with the basics – stocks refer to the trading equities of various companies. The first rule of investing in stocks and for that matter any investment plans in Dubai is to research and study the market before taking a dive.
Stocks are considered to be a very volatile investment option out of the pool and are not the ideal choice for the individuals that fall under the category of risk-averse.
There are two stock exchanges in Dubai:
- Dubai Financial Market: DFM is the first stock exchange to have had its Initial Public Offering in the year 2006. It is a Shariah-compliant stock exchange and its regulatory authority is the Securities and Commodities Authority. It trades the company shares of nearby regions such as Bahrain, Kuwait, Oman, among others.
- NASDAQ Dubai: NASDAQ is the 2nd stock exchange in Dubai. It lists both domestic and international companies, of all sizes. The Dubai Financial Services Authority is the regulatory authority of NASDAQ that is located in the Dubai International Financial Centre.
This type of investment is more suitable for the investors that fall under the risk-averse bucket, as it is considered to be safer. It is also said to offer better returns if compared to the other investment options such as fixed deposit or certificate of deposit.
Unlike stocks that is an equity instrument, bonds are a debt instrument issued by companies that provide interest against them.
A bond’s value is returned on maturity. In Dubai, bonds are traded in the form of Sukuk due to the Islamic Law for interest. However, there are few bonds that are conventionally traded in the western form.
Mutual funds are considered to be a cheaper option for stocks. They are suitable for investments that are long term. These are managed by fund managers – they collect a pond of money from investors and invest in securities, stocks, bonds, among other options.
This is a good option for someone who wants to invest a small sum of money, as the risk exposure is less. This is because the fund manager collects funds from the investors and splits it into small parts to invest in stocks of different companies.
It is important to consider the economic growth of the region before even considering real estate as an investment option. However, with the fast-growing economy, real estate is a good option among the investment plans in Dubai.
Dubai being a famous tourist spot across the globe adds to the value of a property. Therefore, the developments and growth in population can make a good return on real estate investment plans in Dubai.
There is a wide range of fund investment plans in Dubai. They range from international funds to domestic funds. They are of various types such as fixed-income funds, equity funds, sector funds, active funds, growth funds, shariah-compliant funds, etc.
The ultimate choice depends on the financial objective of the investor.
Dubai also referred to as the ‘City of Gold’ is home to this precious metal. Gold is a type of saving that offers a good resale value. It can be liquidated anytime at a good profit margin. In the long run, it is considered as a safe investment.
The gold market fluctuates on a daily basis and therefore before investing, it is important to study the market and enter it at the right time.
Are You Ready to Dive In?
There is a wide array of the best investment for Expats in Dubai. The financial world has been evolving, which can make investment seem like a tedious task because of the jargons involved. But it is equally important to use this to maximize your wealth as this ensures a healthy financial life. Understanding and studying the market, and then using your funds to earn extra money is a wise decision.