What are the Different Investment Options for Expats in UAE? (2024)

Earning money and paying bills is not the ideal way to have a financially stress-free life. In fact, a lot of people are guilty of doing so. You know, why? Well, it could be because we all often take consolation in the fact that we do not earn enough money to save for our future.

Instead of saving for our future, it is our never ending expenses which are on auto-pilot mode. But it is not impossible to make a habit of saving and get our financial health in order. To assist you in this, UAE offers an array of investment options for potential investors. But the main concern is that are there the same investment opportunities for expats in the UAE as like Emiratis?

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Well, yes! The country offers plenty of good investment options for expats in Dubai that help them to make a good profit of their invested money. In this article, we have mentioned some of the best investmentsin UAE.

Real Estate

Investing in real estate is amongst the best investment in UAE for expats . But before you invest your hard-earned money in the property market, you should first consider the current economic growth of that particular region. UAE has the fastest-growing economies therefore investing in real estate can certainly be a great idea. In addition to economic growth, some of the Emirates such as Dubai and Abu Dhabi are the best tourist spots that people prefer to visit from all over the globe. This is one of the positive aspects that add significant value to a property in UAE, specifically in Dubai and Abu Dhabi. Considering all the key developments as well as the growth in the population, real estate investors can expect a good return on investment.

National Bonds UAE

Investing in bonds is considered to be a smart and safe investment option especially for risk-averse investors. The best thing about this investment option is that it offers great returns when compared to any other investment options for expats in dubai like Fixed deposits (FD) or a certificate of deposit. Dissimilar to stocks that are an equity instrument, bonds are basically a debt instrument that is issued by companies and offer a high interest against the bond. Please note that the bond’s final value is returned to an investor upon the maturity of a bond.

In the UAE, since as per the Islamic law, interest is considered as a haram, bonds are dealt in terms of Sukuk. But still, there are a few bonds which are traded in the conventional format. National bonds are accessible easily and they can be purchased with a minimum of 100 dirhams and multiples of 100 dirhams. And they can be redeemed at any exchange house easily after a minimum holding duration of 3 months i.e. 90 days.

Stocks

Investing in stocks is indeed the best investment for expats in UAE. In fact, this is the first & foremost investment option that comes to everyone’s mind when thinking about investments. For the people who don’t know what is stock all about? Stocks are basically the trading of equity of different companies.

Before investing in stocks, it is important to research, analyze, and understanding the current economic growth of the market. Stocks are one of the most volatile investment options and it is definitely not meant for risk-averse individuals since the value can go up in one moment and it can go down in another moment.

Mutual Funds

Mutual funds are a great long term investment plan in UAEthat is reckoned as an affordable alternative for stocks. Mutual funds are typically managed by a fund manager where he/she collects a pool of money from potential investors and then invests in bonds, stocks, securities, and the like.

When a fund manager collects an amount of money from a potential investor, he/she tends to split the money into smaller parts and then invest it in various company stocks. This will eventually reduce the exposure to risk. Hence, it is amongst the best investment for expats in UAE that can be easily considered by investors especially by those people who are comfortable in investing a small amount of money. After a specific period of time, the investor will begin making profits as per the mutual funds type they have chosen. In the UAE, there are several banks and financial institutions that offer mutual funds and they are Citibank, HSBC, and much more. And there is one thing that every investor needs to keep in mind before investing in mutual funds that they offer profits in the long run. So, the longer you invest your money in mutual funds, the higher returns you can expect from it.

Funds

There is a host of fund investment options for expats are available in the UAE. Funds range from equity funds, value & growth funds, fixed income funds, active & passive funds, sector funds, Shariah-compliant or non-complaint funds. You can choose any of these fund options as per your financial objective.

Gold

Gold is yet another safe and best investment for expats in UAE, especially in Dubai. In fact, Dubai is the land of Gold. The first and foremost reason why this precious metal is a good form of saving because it has a good resale value. Gold can be sold at any time and investors can make a good profit out of it. Hence, it is safe to say that it is gold is a better investment option that helps in the long run. However, the gold market keeps on fluctuating on a regular basis. So, you must analyze the current rate of gold in the market before investing in it and invest in it at the right time so that you can make the most of it.

Deposit Accounts & e-Saver Accounts

These are the accounts which are designed mainly for the banks in order to offer higher returns to its potential customers. Deposits bank accounts range from fixed deposits (FD) of one to twenty-four months with a high rate of interest. Just like that, e-Saver accounts that are offered in the UAE by the leading banks like Emirates NBD, ADCB, HSBC, and Mashreq Bank. These banks offer e-saver accounts that offer a high rate of interest as compared to conventional savings accounts. However, these bank accounts don’t come with debit cards to enable its customers to make withdrawals.

Final Verdict

Nowadays, it has become very important for everyone to invest their hard-earned money in the right place in order to secure their future financially. Because saving your money in the bank will hardly be sufficient for any worthwhile returns. So, if you are an expat and looking for the best investment for expats in UAE, then you can consider the aforementioned investment options for expats in Dubai to make the good profit of your invested money.