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Smartest investment and life plans in UAE
It is truly a modern-day marvel to witness the evolution of Dubai from a quiet port in the gulf to a bustling metropolis. Dubai is one of the best career destinations globally and is home to expats from almost 200 different countries.
Approximately 90% of the total population in the UAE comprises of expats. The diverse and rapid growth of the economy has led to an increase in the number of expats in the country. The geographical location of Dubai in the Gulf makes it an ideal location to live and work. The location offers a unique blend of eastern and western cultures that adds to the value of Dubai as a business hub.
According to a survey by Payfort, the majority of residents in the UAE (approximately 38%) manage to save only 10% of their earnings. The market in the UAE holds has immense potential and numerous opportunities for willing investors. Expats who are new to the country are unaware of the best investment options in Dubai.
Investments constitute an integral part of a diverse financial portfolio. While choosing the best investment plan in the UAE investors should focus on choosing forms of investments that have an inverse relationship with each other to minimize the risks associated with an investment portfolio.
The list below will help you to select the best investment option in the UAE-
Stocks are one of the most popular investment options not just in the UAE but globally. Stocks are company shares that are purchased by an investor that eventually allows them to participate in the company’s overall growth. Stocks are provided by companies that are listed on stock exchanges and can be purchased by any investor.
Stocks are ideal long term investment vehicles that can reap huge returns if invested carefully with proper guidance.
Mutual funds have been around for quite a long time but have recently gained popularity within the past few years. Mutual funds are investment tools that pool the money of different investors and invest it in such a way that their investments reap optimum returns.
Equity-based mutual funds invest in stocks and equity-related tools, similarly, debt mutual funds invest in the form of bonds and papers. Hybrid mutual funds invest in both equity as well as debts. Mutual funds are one of the best investment options in Dubai which provide flexibility and convenient options for investors in the UAE.
Fixed deposits or FD are investment tools that are meant for a specific pre-defined period. Fixed deposits are ideal for investors that aim at capital protection and guaranteed returns. Fixed deposits are provided by banks for varying periods.
Fixed deposits are a less flexible form of investment and come with a minimum lock-in period. Investors can avail bank loans against fixed deposits which makes it an ideal choice in the list of best investment options in Dubai.
Recurring deposits are long term investment tools that allow investors in the UAE to add value every month to their investment portfolio. The interest rates offered on recurring deposits are decided by the financial institution providing it. Recurring deposits allow investors to invest small amounts monthly which help them to build a corpus over time. Guaranteed returns and capital protection are some of the factors that make recurring deposits one of the best investment options in Dubai.
The exponential growth witnessed by the economy of Dubai automatically makes real estate the best investment option in the country. To explain the relationship between the growth of the economy and real estate let’s consider the example of Dubai Silicon Oasis (DSO) in Dubai. Just a few years back it was an isolated stretch of the desert but today it is a thriving residential community. The growth of businesses in Dubai has led to an increased demand for real estate in the country.
For expats, buying a home in the UAE may be easier than their native country. In an ideal situation, the monthly installments in the UAE for a home are very close to the monthly rent; therefore the correct approach would be paying the same amount as a mortgage which will build an asset for the future.
Summing it up!
Dubai in the UAE is filled with a vast variety of investment opportunities investors looking for high rate of interests should consider investing in property, mutual funds, and the stock market.
Ideally, the best investment options in Dubai depend upon an investor’s goals over the long and short term, their risk tolerance capacity and the period for which they choose to invest. The key to building a strong investment portfolio is to assess and analyze the needs of investors followed by their goals which will help them to choose the best investment option in Dubai.