Why UAE Residents Should Invest in USD!

If you’re earning and saving in dirhams but still not investing in USD, you might be missing out on some easy financial wins. The dirham is pegged to the USD at a fixed rate. As a UAE resident, you can make USD investments without worrying about the exchange rate. You also get the added advantage of 0 personal income tax while you grow your money in the world’s most used currency.

Why is Investing in USD a Smart Choice?

There are 3 reasons as to why USD investment is a smart move. First, the dirham is pegged to the dollar. Thus, moving your savings into USD-denominated investments doesn’t expose you to the market fluctuations that other investors around the world face.

Second, since the UAE doesn’t tax salaries, dividends, or capital gains, whatever you earn in USD stays yours. And last but not least, the USD market is huge: more funds, more bonds, and more options than what is available in dirhams alone.

Ways to Invest in USD

1. Global Mutual Funds and SIPs: You can invest in USD-denominated funds that cover US shares, global bonds, and emerging markets. The investment could be a lump sum or through SIPs.
2. Globally Listed Indexed Funds (ETFs): With ETFs, you buy a small portion of tens or hundreds of US companies at once, in USD, at a low cost.
3. US Government Bonds and Bond Funds: They are a safer and income-focused option for people with a low risk appetite for stock market fluctuations.
4. USD-based Investment + Insurance Plans: They combine long-term investment growth with life cover. You can pick the currency you want to invest in, including the USD.

How to Get Started?

With multiple USD investment options, finding the right investment that fits your goal can be challenging. This is where platforms like Policybazaar.ae come into the picture. As a comparison platform, we help you compare and review investment and savings plans from trusted and licensed providers. So instead of taking a long time to research each option, you can explore and compare the best options in one place.

Here’s how it looks in real time:

• Compare USD investment plans against the AED and other currency options, all in one place
• Use free calculators to see how your money will compound before you make a commitment
• Connect with a trusted advisor to match the plan’s currency and structure to your real-time goal
• Complete the paperwork and verification through a simple, guided process

Before making a choice, get two things in order: how long you plan to invest and how much of your money is protected against currency fluctuations.

For instance, a 5-year goal needs a different plan than a 20-year one. With so many options available, the hard part isn’t finding a USD investment option; it is finding the right investment plan for you.

Policybazaar.ae can help you narrow down a few USD plans that fit your budget. If you plan to invest, don’t wait — start today!

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