Smartest investment and life plans in UAE

Here’s How You Can Make Safe Investments as an Expat

By PolicyBazaar
  | Published: 17 January 2020 | Last Updated On: 19 January 2021

Invest smart today for a better tomorrow

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Smartest investment and life plans in UAE

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Majority of expats even after discovering the freedom of expatriate lifestyle needs a transition. Stepping out of your native jurisdiction gives you considerable scope to think outside the box and adopt a new perspective and approach to your life.

Living and working as an expat plays a crucial role in changing the way you look at life and world because you are exposed to different indigenous cultures and traditions that you are unaware of, the same applies to investment. Learning the skill of investment as an expat will help you to build a corpus for your future.

Expat investments vary extensively from options typically available to non-expats residents. Unless you’ve been living in the new country for years it is difficult to analyze the market and choose the ideal investment vehicle that reaps lucrative returns and involves negligible risks.

If you are one of those expat investors struggling to find the correct strategy and investment vehicle to fulfill your financial goals, don’t worry. We are here to help you and ensure that you find the right investment vehicle and strategy. This article will shed light on making safe investments as an expat in the UAE.

Think for the long-term

Before making any investment-related decision you should assess your long-term goals. Furthermore, you need to decide whether you would return back to your native jurisdiction in a couple of years. If your objective is to spend only the economically productive years of your life outside your native country then you should lay emphasis on making investments in your native country. Doing this will help you to generate a steady flow of income during your twilight years. 

If you are planning to make investments in your native jurisdiction then it is important to manage currency based risks so as to maximize the output of your investment in UAE.

Invest with a bank  

Investing with banks is one of the oldest and safest methods of investment for expats mainly because banks offer tailored services that advise and assist them in efficiently managing their assets. Financial Institutions and banks allow expat investors to access a professional financial advisor who will guide you in order to make the best investments in UAE.

Native Investment Vehicles

Based on your native jurisdiction, you can take advantage of low-risk savings and investment tools. Investing in your native country helps expats during the twilight years when they return back

Invest in Pension Plans

Pension plans in UAE are saving schemes that help you to widen your investment portfolio. Expatriates should focus on allocating a portion of their income towards a retirement plan. Many developed countries like the UK and New Zealand allow investors to transfer their pension outside their residing country. Overseas pension transfer makes investment options more flexible and helps expats to secure their future.

Stocks

Stocks have been one of the most popular and high return yielding investment options in the UAE. Dubai stock exchange is one of the biggest stock exchanges in the entire middle-east. The financial market of Dubai is regulated by SCA i.e. Securities and commodities authority. Expats should thoroughly analyze the market scenario and seek professional guidance before investing in the stock market.

Bonds

Another investment vehicle that has gained immense popularity within the past few decades is bonds. As per the Sharia, law interest is considered haram therefore bonds in UAE are traded in the form of Sukuk. Bonds are suitable for expats in UAE as they require very less documentation to begin investing moreover, bonds can be purchased at a price of AED 100 and it’s multiple. Bonds can be redeemed at exchange houses after holding them for a period of ninety days.

Property

Property is another investment option to be considered if you are an expat in the UAE. The rapid evolution of the UAE’s economy has contributed to a boom in the real estate sector. Although investing in property might not be everybody’s cup of tea, if you have the funds investing in property is probably the most lucrative investment vehicle in the UAE.

Conclusion

If you are an expat residing and working outside your native jurisdiction building a diverse investment portfolio can be a challenging task. Investors should focus on their long and short term goals along with the time horizon while making investments as an expat in the UAE. Making investment as an expat is a wise decision. The returns received on investments in UAE depend on the level of risk you can bear. Moreover, before making any investment-related decision investors should consult a financial advisor.