Best and the Safest Investment Options in the UAE
Hands down, it is a miracle to behold how far and quickly the Emirates has progressed and developed over time. From being one impoverished desert area to converting into one of the most diversified and important economies in the Middle East, it has definitely been an amazing journey.
The United Arab Emirates proudly ranks amongst the top 20 countries in terms of worldwide service business. Moreover, the UAE stands at the 31st position on the Forbes list for the countries that are best for business.
Although the economy of the UAE is already enjoying a high per capita income along with a huge yearly trade surplus, and the situation looks even better in the future. As per IMF, the economy of UAE is predicted to get strengthened further in the future.
When it comes to the global economy, this is a common thought that the market of the UAE holds a huge potential for the people who are willing to invest. There is a huge spread of opportunities for investment available for realizing a high investment return. But selecting the best investment option in Dubai for yourself can be a daunting task.
Moreover, there is also a different issue when you consider one of the main factors that a large portion of the population in the UAE features expats. On one side, the expats who have arrived in the Emirates recently simply do not have the skills necessary for finding a way of making use of the opportunities for the investment they have in the UAE. On the flip side, there are expats who possess the ability to make the most out of their investment opportunities in the Emirates.
This means that even the simplest type of investment for the UAE’s expats may vary from the others. This is the reason why various investment needs of expats should be considered, evaluated, and analyzed while checking in detail for them the investment option in Dubai.
In this article, we will list and discuss the best and simplest options for investments in Dubai currently. You must note that these investment tools are not exhaustive characteristically and mainly work as a guide for those investors who are looking beyond possessing all of the cash put in one of their savings accounts. Moreover, it is also very essential to remain mindful of the risks, which are carried with all these kinds of investments. You need to fulfill your due diligence from your side and not invest those funds that you cannot afford losing.
What are some of the top investment opportunities in the Emirates?
Here is a list of the best investment options in Dubai for the residents.
The meteoric development of the UAE makes the property simply the most sought after sector of the nation. It is just amazing to look at the speed by which the buildings get constructed in the country and the resulting boom in the property & real estate sector.
If you look at the Emirate of RAK or Ras Al Khaimah, you will see that the Emirate has been investing in the development of its sites that involve a huge range of natural and scenic beauty. Ras Al Khaimah is developing quickly towards being a major tourist spot for international and national tourists. As per the RAKTDA (Ras Al Khaimah Tourism Development Authority), the efforts for tourism development in the Emirate has led to a rise in the number of tourists by 17% in 2017.
Now, if you look at the DSO or Dubai Silicon Oasis area in the Emirate of Dubai. Looking a few years back, it was only considered to be an area as a part of the desert. However, at present, it has become a thriving commercial and residential community as Dubai is expanding aggressively.
When you think from the point of view of the expats, it actually makes sense for them to buy their house in case they decide on staying in the country for a long time. If we consider an ideal scenario, they will be paying somewhere around the same amount towards monthly installments as they would be paying on rent; however, with the former, they will be building an asset throughout the process.
Hence, simply put, it would be like making use of the money spent on rent as a type of investment. On the other hand, you can also buy property for renting it out to people. You can also convert it into a commercial property. For the owner of the property, the rent will be the constant source of income. If you have bought a property, then as the owner, you can raise the amount of rent for keeping up with the inflation and the rising cost of the property.
2. ETFs and Mutual Funds
Mutual funds are superb investment options in Dubai for the ones who are looking forward to taking a passive position. This is a particularly convenient method, courtesy of the exposure in the market, which gives built-in diversification & a stress-free mechanism. So basically, the investors put their funds in a tool, which is a pool of investment opportunities. Mutual funds are managed by professional fund managers.
There are various open-ended fund options for catering to the different desires and needs of the investors. In case you put your money in an open-ended fund, you will not need to stress about the regular fluctuations in the market after that. Your concerned fund manager will take care of that.
ETFs or Exchange-traded funds are usually open-ended options for investment listed on the stock market. This investment instrument has risen in popularity due to its low price and simple trading.
The stocks are amongst the top investment options in Dubai. Whether your income comes under the huge net worth category or not, you still have the option of enjoying the benefits of making investments in stocks. They are usually pretty economical & you can invest in stocks with high performance from your preferred firms for as low as 100 dirhams. For having some good diversification in your investment portfolio, it would be great if you can invest in various stocks, say about 5-6.
While purchasing stocks, don’t forget that you have to enlist the discount broker’s services instead of the full-service professional. Although full-service professionals also work, they generally involve high commission rates & minimum deposit. They are more suitable for those investors who hold a lot of dirhams for investment.
This can be done by opening an account through discount brokerage online. In case you want to skip the third-party charges completely, you can go further and purchase the shares from the companies directly, hence removing the requirement of a broker in the procedure.
Since the historic period, all across the world, gold has been a symbol of wealth. Amongst the pros of putting your hard-earned money in gold is- you can generally stay on track in terms of inflation. In case you invest around 5% of the money on gold, you will get amazing returns and secure your savings from losing their value due to inflation. Also, gold is a commonly held asset for well-diversified portfolios because the investors can use it for hedging against inflation.
These are a super favorable asset class that offers a consistent and good income source at a lower risk. But just like any other method of investment, it is best for exercising when making an investment in bonds. Bonds may have heavy sizes of the ticket and involve low liquidity. Generally, bonds are not recommended for middle and lower-income groups. Some of the bond make it simple to invest, although most of the bonds act as accumulators of various corporate bonds and so, must be studied properly before investing.
In case you are planning to invest some of your funds in bonds, the best thing to do is weighing your options, analyzing the bonds, which are putting the funds in, and then investing carefully.
This one is amongst the most controversial option in this list and the reasons are good. At this time, making an investment in cryptocurrencies is a very speculative move. Hence, any person who is considering investing their money in this investment tool must be mentally ready to part with all of their investment.
That said, there is a ton of potential when it comes to cryptocurrencies and as a result in the underlying blockchain technology. In their unique manner, cryptocurrencies resonate with the UAE’s growth exponentially where it has risen at a staggering speed against all the odds of carving a region of its own in this world.
You must have heard about Bitcoin, one of the most popular kinds of digital currency.
There are many investment options in the UAE for the people who wish to invest their money. No matter you are an expat or Emirati, the above-mentioned options are amazing for you. Invest your funds wisely and you can reap the benefits (read return on investments) and live a financially comfortable life.