Where should I invest my money in UAE? Well, by exploring methods to invest your money in the UAE, you could be able to give a powerful gift to your future.
Before investing your money in the UAE, it’s crucial to invest your time to find answers to the basic questions like: What could an investment do for me? Where should I invest my money in the UAE? Where to invest in the UAE?
With that in mind, let’s walk you through this beginner guide to discover the best investment options in Dubai.
Helping you get started further on the same.
Why Investing in the UAE?
The UAE is a booming market for investment. Whether you are planning to explore best investment in UAE for the short or long-term, there are numerous ways to thrive and achieve your investment goals.
The UAE is an investor-friendly destination, offering a tax-free environment and full repatriation of profits, making it a prime location for wealth growth. So why let your money gather dust in the bank? Consider making an investment plan with the help of a financial advisor and get ready to invest in a diversified portfolio.
How to Invest Money in UAE?
Building wealth isn’t a daydream if you take the right steps. If you were not born in fortune, it doesn’t mean achieving financial freedom is beyond reach.
Many believe wealth is inherited, but studies suggest otherwise. According to a national study of US millionaires led by Ramsey Solutions, a financial advisory firm, “79% of millionaires did not receive any inheritance at all from their parents or other family members.”
This is not exclusive to the U.S. About 60% of Dubai millionaires are also self-made, according to the Khaleej Times.
What then is the secret to a fulfilling life? About 75% of those interviewed by Ramsey Solutions stated “regular and consistent investing over a long period led to their success.”
Here’s an example of a small investment: if you invest about AED 10,000 at the end of every month for the next 10 years in a portfolio that yields an 8% annual high return (that compounds every quarter), will have AED 1,824,086.73 at the end of year 10.
So now is the time to pick a range of investment opportunities in Dubai and generate higher annual returns from investment funds. Whether you are looking for short-term investment options in the UAE or medium-risk investments, you can embrace success.
Where Should I Invest My Money in UAE for High Returns?
Investing means a way to invest your money to work in assets that are likely to grow in value over time. And what can you invest in? There are a range of popular investment options from short and long-term investments to low and high-risk investments.
Whatever you want to invest in, you should also keep in mind the market fluctuations and higher interest rates.
Here’s a breakdown of the best investment in Dubai for expats and locals.
Stocks
The UAE offers three stock exchanges, allowing multiple investors to invest in: the Abu Dhabi Securities Exchange (ADX), the Dubai Financial Market (DFM), and Nasdaq Dubai. By global standards, these are comparatively small exchanges – but that also means they provide a vast scope for growth. Recently, they’ve been trending upward.
Dubai IPOs have generated over $9.4 billion over the past three years and the DFM’s general index ranked fifth-best internationally in 2023, attracting 230,000 new investors in the process. That is to say, it’s active and thriving. So the UAE’s rise as an international investment and financial hub is not surprising.
Choosing stocks can be tedious. It may carry risks due to fluctuations in the stock market in the UAE. To stay on the safe side, you can allocate funds to the iShares MSCI UAE ETF. That’s an ETF that provides broad exposure to registered UAE companies. It allows them to benefit from the market’s overall growth and get significant returns on investment.
Bonds
Unlike stocks, purchasing bonds ensures more predictable financial planning for investors in the UAE. Buying treasury bonds means you are basically lending money to the government. In return, they pay you a fee, known as a coupon payment. This usually enables you to generate more money than a conventional savings deposit.
Moreover, they are relatively a low-risk investment as they are supported by the UAE government.
Bonds investment in UAE includes National Bonds, an investment strategy that is 50% supervised by the government of Dubai. In 2023, citizens who invested in National Bonds received up to 5.8% returns. Moreover, UAE National Bonds are also sharia-compliant, with a devoted advisory board monitoring investments.
Investing in Gold in the UAE
Gold is one of the best UAE investment options. Gold remains a top investment choice in the UAE, offering a hedge against inflation and market downturns. People purchase gold in bad market conditions, so its value can be appreciated during bear markets. This can enhance security and diversification to your investments.
And if you are looking to purchase physical gold, there aren’t many locations better than Dubai’s famous gold souk. Gold is a popular investment choice where you can easily invest in Dubai. The prices align with international rates, but since the market is tax-free, you could get some relief.
Real Estate Investment in UAE
Real estate also holds potential for significant returns. Just like gold, purchasing property is also considered one of the best investments in the UAE. And if prices in the UAE keep rising, you can earn higher returns.
Property values in Dubai and Abu Dhabi have significantly increased – about 15% since 2021. Some analysts observed a 10% rise in property prices in 2024.
If you want to buy property in the UAE as an expat, buying in specific locations called freehold zones is recommended. For real estate investment, the price is all about location. The key questions you should find answers to: how reachable is the property to the rest of the city? What are the area’s future development plans? What’s rental demand like currently?
If you don’t plan to purchase an actual property, you can buy a Real Estate Investment Trust (REIT). REITs are purchased and sold like stocks. It will allow your access to income streams produced by clusters of properties. You will generate high returns on investment from both the appreciation of the REIT and a dividend payment.
Pro tip: the largest registered sharia-compliant REIT is the Emirates REIT.
Establishing in a Free Zone
If you are an international investor intending to establish a company, the UAE offers more than 40 free zones to investors seeking quick returns and outstanding benefits. For international entrepreneurs, UAE free zones offer unparalleled benefits, including full foreign ownership and tax incentives. You could also acquire exemptions from customs and easy access to global markets.
And several are industry-specific, such as the Dubai Multi Commodities Center (DMCC), the Dubai International Finance Center (DIFC), and Dubai Media City. You can take advantage of personalized services for this unique investment that meet your needs and are excellent for networking and collaboration.
Final Thoughts
The United Arab Emirates (UAE) has become a beacon of prosperity and promise in the world of global investments. For a long period, the UAE has maintained its position as a top choice for those looking to head start their investment journey and scale up existing companies.
And it’s not without a reason. The UAE stands as a global investment landscape with opportunities in stocks, real estate, gold, and more. Whether you’re a new or seasoned investor, strategic planning can maximize returns.
Still thinking where should I invest my money in UAE? Reach out to Quadrawealth to seek advice on investment plans in UAE. Our certified financial planners will provide insights on your investment process and suggest optimal business structures, ensuring financial security.
Feel free to contact us today!
FAQs
Q1. Can a Non-Resident Invest in the UAE?
A: Yes, prospective investors can make investment plans for future business ventures in the UAE. Investors can benefit from the UAE’s Golden Visa that offers a long-term residency (renewable every five or ten years) without a sponsor in exchange for investment.
Q2. What are the Benefits of Investment in the UAE?
A: The key benefits of investing in the UAE include business-friendly environment and government support, strategic location and global connectivity, tax advantages and financial benefits, growing real estate market, and robust and stable economy and more.
Q3. Is the UAE a good place to invest?
A: There are many investment options in UAE and it’s a safe haven to invest in as it is widely recognized as an investor-friendly destination. Moreover, the government has built infrastructure and development projects which offer new investment opportunities and ensure economic growth for investors.
