How to invest in UAE

Sep 16, 2022

How to invest in UAE
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When you have some savings, the first thing that should come to mind is to invest them and make a profit. But how to invest is a question that remains in mind. Good investment plans are crucial for the development and sustainability of any business and individual. The UAE, with its diverse economy and strategic location, offers potential investors a thriving financial environment. Evolved into one of the most sought-after luxury tourist destinations in the world, the UAE offers a promising venue for international trade and business. 

 

There are numerous investment opportunities in the UAE to help you make the most of your money; here are a few to consider:

 

Stocks

Stocks instantly come to mind when we think of investing. Stocks are a popular investment option as they can bring significant profits if invested properly. Stocks allow you to own a portion of a firm through shares that are listed on stock exchanges. But before investing in stocks, it is critical to conduct research and understand the market's current economic growth. Dubai has two stock exchanges: 

 

  • Dubai financial market: A Sharia-compliant stock exchange governed by the Securities and Commodities Authority. Dubai financial market trades stocks from nearby regions such as Kuwait, Bahrain, Oman, and other Gulf countries.

 

  • NASDAQ Dubai: NASDAQ is a stock exchange that has domestic and international listings. It allows you to trade REITs (Real Estate Investment Trusts) and equity derivatives. It is currently based in the Dubai International Financial Centre and is regulated by the Dubai Financial Services Authority (DFSA). 

 

Bonds

Bonds are another popular asset type in Dubai since they allow you to create a stable income with no risk and higher interest than banks. Bonds are debt security, with borrowers issuing bonds to acquire funds from investors ready to lend them money for a certain period. As interest collection is forbidden in Islamic culture, most bonds in Dubai are traded in the form of Sukuk through the National Bonds Corporation (NBC), a Shariah-compliant firm founded on Islamic investing principles. There are, however, a few bonds that are traded in the traditional western format.

 

Real estate investment

Real estate has long been regarded as one of the greatest investment alternatives in the UAE since it delivers both capital gain and consistent income. Several aspects make real estate investment in the UAE appealing to investors. For starters, property costs in major UAE cities such as Dubai are lower than in other international cities such as London, New York, Sydney, and more. Apart from economic growth, some of the Emirates, such as Dubai and Abu Dhabi, are popular tourist destinations for people all over the world. This is one of the advantages that add significant value to a property in the UAE, particularly in Dubai and Abu Dhabi.

 

Gold

Investment in gold is considered safe as it keeps up with rising prices and has a high resale value. Known as the "land of gold," making charges in Dubai are set as a flat rate rather than as a percentage of gold prices. Gold is sold per gram, and making charges are added as a secondary charge. It is important to remember that gold, like any other asset, is subject to daily fluctuations in price.

 

Funds

In the UAE, there are numerous fund investment options. Equity funds, value and growth funds, fixed-income funds, active and passive funds, sector funds, and Shariah-compliant or non-compliant funds are all available. You can select any of these fund options based on your financial goals.

 

With numerous investment options in the UAE, you need to put your money to work to achieve your goals faster. At BanqMart, you can get a better understanding and learn more about other investment options in the UAE with our financial assistance.

 

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