OPPORTUNITIES FOR INVESTMENT IN UAE
The most appropriate investment opportunity is the one that you can afford and which brings you substantial benefits. To facilitate that UAE, which is a big-league in the land of investment, has a plethora of possibilities for you.
This massive world has a place for every kind of investment. Zero – tax makes it more welcoming than the rest of the world.
We have ranked the Top 5 options you can invest in UAE in the order below:
5. INVEST IN BONDS
Returns: Extremely Low
This is the worst investment opportunity in the lot & I would not recommend you to put your money in bonds.
There is high risk involved & as observed in the last few years, huge losses were incurred by many people. And, even if you decide to invest here, and are lucky enough to not bear losses, the yields would still not be satisfactory.
4. INVEST IN STOCKS
Returns: Extremely High
This is a way better option than bonds. Although, like any other business it involves risk. However many have witnessed high returns over the course of the last 4 decades.
Is UAE the right place to invest in Stocks? Or is your own country better?
The best stocks are those of American firms that have a presence in almost all the countries in the world. Be it UAE or outside, one should always invest in tried and tested firms and markets if one doesn’t have deep knowledge about the stock market.
How to get started & buy stocks in UAE
Make sure that you open your trading account with a licensed broker
Focus on the most profitable stocks
Purchase the shares and be consistently aware of the state of your shares
Am I eligible to buy stocks in UAE?
Yes, you are. The good news is that there’s no mandatory requirement for sustaining the trade stock average. But in case of a margin account, you have to maintain close to AED 7400.
3. BUSINESS OPPORTUNITIES
Risk: Medium, But Knowledge needed
Returns: Considerably high
Investing in a good business or Startup in UAE may be a highly
profitable investment for you. This is a really good option if you are
willing to do research on companies and purchase stakes or invest in a
business that might boom in the near future.
Which business to invest in?
The Beauty Industry, Health Care Services & IT Sector are the most thriving industries in the UAE. So, if you want good returns for your investment so these three would be the best.
Note: The above sectors are flourishing in UAE because of the easy availability of skilled workforce all across the UAE. Therefore this presents a huge benefit for you to invest in such booming ventures whether actively or passively.
2. INVEST IN REAL ESTATE
Risk: High Risk
Returns: Low return in the past decade, but investments can lead to high returns in the future.
Given the current economic scenario, purchasing a property in Emirates might seem out of the question. However, this shall too pass. Real estate can never go out of business. There will always be demand, and it will forever remain one of the most lucrative investments.
Warren Buffet has recently brought his business in UAE. When the legend himself hasn’t shied away, Why should you?
How much to invest?
You need at least AED 200000 or above to make a meaningful investment in real estate. At the same time, keep in mind that the price of the property depends on the area you are seeking.
Benefits of Real Estate Investment in the UAE
- The bane of one’s existence – TAXES. The good news is that the UAE is a tax-free paradise. Expats have the advantage of paying no duties on property.
- Right now, the real estate prices in Emirates are one of the lowest in the world. You can get world-class infrastructure at a moderate price if you don’t waste your time waiting.
- Owning a home here is a gratifying experience. Whether it a luxury structure or reasonable dwelling you are seeking, through its transparent laws, UAE provides you a safe and secure environment.
- One of the highest rental incomes among all significant places in the world.
- The Gulf is an excellent platform for those seeking to set up business here. The government favors foreign investment considerably and provides efficient business support services and speedy licensing.
Where to invest in UAE?
Real Estate in UAE is divided into 2 parts – FREEHOLD and FREEZONE.
In simplest terms, freehold means residential property, and Freezone indicates property set out for running a business.
And out of these two, your first consideration to invest should be in a freezone property due to multiple reasons like,
- No corporate tax
- Hassle-free admin services
- Unrestricted money transactions
- Low-operational cost
- Easy availability of skilled professionals
- Advance IT infrastructure
- Reliable laws and regulations
Emirates is heaven for business people and entrepreneurs. 100% ownership also comes in the package.
Those who prefer something residential, freehold is a better option to invest in. One can buy according to one’s pocket,
- Affordable housing
- Luxury villas
- Beachfront property
- Apartments in skyscrapers
- Ranches and many more
Only after a thorough analysis of your requirement, pursue the real estate option in the Emirates that suits your fancy.
1. INVEST IN GOLD
Risk: Low Risk
Returns: Always High Return
Gold is the most liquifiable asset of all time. It is one of the most go-to refuges from generations. So investment in gold, that also in a place like UAE, which has treasures of this precious metal, is a sound decision.
Benefits of buying Gold from UAE
- Transparency where selling and purchasing is concerned
- Best quality assurance
- Easy liquidity
- Convenient choice to diversify the financial portfolio
- Low prices of Gold
Gold still is more popular as a gift than other assets to be given on special occasions, across the world.
TIP: Investment in gold should be consistently short or mid-term. That way you have the privilege to pay attention to other horizons.
Where to buy in Gold in UAE?
If you are interested in purchasing the yellow metal, then head straight towards Gold Souk in Dubai. It is an exclusive hub for gold enthusiasts. Quality is indisputable and bargaining can lead to a nice deal.
If you are not keen on buying gold, then you can put your money in a gold mutual fund, where your share is invested in gold mining, manufacturing or retailing companies.
How much to invest?
The demand for investment in gold is growing worldwide more than 10% per year. And it has a large market in the UAE.
Quick Note: Gold ETFs (exchange-traded funds), have also been introduced in the Gulf, which is more financially rewarding than any other gold plan.