We live in a truly global world. Most commonly used products are sourced from all across the globe. However, when it involves investments, we frequently tend to confine ourselves within the geographic bounds of the country we’re native to, or that we’re presently in. This, however, is slowly changing; with people becoming familiar with investment options from all across the world. Investors all over the globe constantly seek opportunities to get involved with rapidly growing yet stable economies of countries like the UAE. In this article, we’ll check out the different kinds of investment options in UAE.
How to Invest Money in the UAE?
Why should you invest money in the UAE?
Here are some reasons why investment opportunities in the UAE are heavily sought after by most investors:
It is favourably located between the east and west, connecting Middle-East, Asia, Africa, and Europe.
UAE’s largest city Dubai stands proudly among the list of the highest cities that provide state of the art infrastructure to its residents.
It offers a plethora of business premises ranging from the mainland to free zones.
UAE has officially been declared the third most peaceful country within the Middle East and North Africa (MENA) region.
According to Doingbusiness.org, UAE ranks first within the region for the convenience of doing business. This conclusion is drawn based on parameters like ease of starting a business, handling permits, registration of property, etc.
UAE’s extremely efficient and flexible business regulation system is designed to encourage a multitude of foreign investments.
Where to invest in the UAE?
Let’s check out a some of the best areas of investment available in the UAE to assist you with getting started:
The Stock Market
There are two stock exchanges in Dubai, both of which function under the care of Borse Dubai. They are as follows:
The Dubai Financial Market (DFM) – The DFM was established within the year 2000. The Securities and Commodities Authority (SCA) regulates the DFM. The SCA reports directly to the Minister of Economy.
NASDAQ Dubai – The Dubai branch of the NASDAQ features listings of both international and domestic stocks. Also on offer are opportunities to trade in equity derivatives and REITs. This exchange is regulated by the Dubai Financial Services Authority (DFSA) – a financial regulatory authority of the special economic zone.
As a stock investor, you’ve got many options in the UAE which may offer great returns in both the short and the long run.
Mutual Funds and Bonds
Like stocks, UAE offers you the chance of investing in mutual funds and bonds too. Since the gathering of interest is considered as ‘haram’ in Islamic culture, most bonds are traded within the sort of Sukuks and a couple of bonds are still traded within the western format. Even Mutual funds are available within both the Sharia-compliant and non-Sharia-compliant formats.
Of all the investment opportunities in the UAE, investment in land has been the most heavily favored by investors from all across the globe. There are many factors that make land investment in the UAE extremely desirable for investors.
For starters, the property prices in major UAE cities like Dubai are less than those in other global cities like London, Sydney, New York, etc. Being located centrally between the east and west has led to the generation and development of business in this region and has subsequently led to an increase in demand for real estate properties. Builders have ensured and delivered quality construction, too. All these aspects put together, have made Dubai the hotspot for land investment among investors from all over the world.
For land to thrive in any city/region, it’s important that the banks and financial institutions make housing loans convenient and straightforward. This is what most banks in Dubai believe in doing too. With a relaxed home equity credit criterion and quick disbursals, banks are helping to extend the amount of buyers who purchase properties, every day.
If you’re not getting to live in your property but want to earn income from your property investment, then Dubai might just be the place for you, too. Dubai’s economy is truly global and heavily dependent on attracting top tier talent from all across the globe.
On one hand, this suggests an increasing number of individuals come to Dubai for employment, which simply translates to an increased demand for rental housing. Dubai is continuously driven towards developing tourism and business opportunities within the city. Both of those factors make sure that the demand for property is usually on the increase .
It must even be noted that the income receivable in Dubai is on par with the worldwide standards, this fact further stands as a boon for the choice of investment in Dubai.
You should never invest in a product that you don’t completely understand. There are many investors who invest in shares or mutual funds based on an anonymous tip/hunch/advice received from a trusted friend, loved one or colleague. This can be counterproductive since such people are unaware of the risks that they could encounter with their investments.
Finally, owning a property is an asset which transcends your lifetime. It can also serve as a source of wealth for your future generations. If you invest carefully and properly in real estate, you can create generational wealth. Properly done real estate investment grows in value, provides regular income and may be used as collateral if you ever need urgent funds within the future. All in all, it is a complete investment and the UAE’s cities like Dubai ensure that you make the most out of your property purchases.
Through this post, we discussed the simplest investment options available in the UAE. to get a better idea of them or to learn about other investment options in the UAE, get in touch with a financial planner from Wealthface. With the Dubai World Expo 2020 only a few months away, the UAE market is expected to grow exponentially, having a major impact on property values.
If you are interested, you can also check out the best investment banks in Dubai.