Five Types of Investments You Can Make In The UAE Economy
A tax free structure and no restrictions on the repatriation of profits have majorly attracted investors from all over the world. As on date, Emirates is the second greatest receiver of the foreign direct investment and is a preferred investment destination for Fortune 500 companies. Besides the aforementioned, foreign investors are predominantly interested in the UAE economy for reasons like great stability, low energy cost, government support and a diversified economy.
Speaking of Dubai specifically, it has generated revenue from different streams and therefore is regarded as the most dynamic economy. An incredible lifestyle, cosmopolitan environment and high-level safety is a reason enough for many to shift their base to Dubai. The city is a land of opportunities and therefore attracts investors from around the world and will continue to do so.
Here’s a comprehensive list of the best ways to invest your money in the UAE economy.
1. Real Estate Investment
UAE is one of the fastest growing economies and an investment in real estate is considered as super lucrative. Believe it or not, it is the most secure passive earning in the UAE. Buying a property and then renting it out is the most effortless way of earning a significant profit.
Also, Dubai offers the highest return on investment (5%-9% per annum). UAE has a lot to offer in real estate- best in class homes and offices. Also, an investor can take great advantage of mortgage benefit, wherein the bank is likely to cover about 80% of the property cost going up to AED 5M. And it doesn’t end there- developers offer favorable payment plans, making it an irresistible indulgence.
Other reasons such as absence of capital gains tax, prospects of obtaining a new visa for a period of 10 years and a diversified investment portfolio; are reasons enough to put money into the property market. Investors can also enjoy leasehold rights for a property up to 99 years.
2. Business Investments
UAE’s FDI Law updates have made way for advantageous investments with high returns in Dubai-based businesses. Given the thriving economy, this has become the best time for entrepreneurs to invest their money and create a strong base in Dubai. To their whip hand, entrepreneurs can today establish a business and absorb 100% of the onshore company ownership. There are many Companies that work as an Investment Company in Dubai encouraging budding entrepreneurs with a dedicated fund and efficient mentorship.
3. Stocks & Shares
Stock investments might not be the safest way of investing but one can certainly make big bucks with a solid understanding. Through a calculated risk appetite, sheer commitment and thorough research, an investor can gain great returns. Stock market could ideally turn out to be the smartest way of making money in the UAE economy, given an in depth understanding of it.
So, before endowing all the hard-earned money, one must get well-acquainted with the volatile equity market. Or else, the chances of losing money would be high.
An investment in gold may be treated as one of the safest and best investments in the UAE. Dubai is famously recognized as the land of gold for simply the same reason. Investing in gold is an excellent way of saving big and making good out of the resale. Gold is a sureshot mode of profit-making and has a 100% track record of administering hedge against inflation.
However, the gold market is attached to a major glitch of high fluctuations. So, it is critical for an investor to comprehend the current rate in order to make the most of it.
5. National Bonds
Investing in National bonds is a safe and smart way of making money in the UAE economy. It is also considered as a great option for risk-averse investors. Investors seeking for fixed income gains with extended interest rates, safety and liquidity; must consider this as an option.
Quite an opposite of stocks, bonds are a debt instrument issued by the companies with no cap. An investor can hold around ten bonds at a value of AED 10 or a single bond at a value of AED 100. It only comes with a specification of holding bonds at a minimum worth of AED 100.
One Last Thought:
Though Dubai offers multiple investment opportunities, not all own the same level of safety and security. Also, not every investment offers equal capital gains. Needless to say, the primary objective of making an investment is to strengthen the financial stability and widen the portfolio; with an end goal of making good money.
Most certainly, everyone’s looking for the best investment platforms to derive profits. One must typically expand their avenues by assessing their goals and risk appetite; and most importantly seeking expert advice.
A diligent approach is the only way to sustain in the dynamic markets.