UAE has become the host to individuals from almost all countries working in various professions and industries, demonstrating the region’s diversity. People all over the globe consider it the home of opportunity due to its financial stability and affluent lifestyle compared to other cities and countries.
The regions like UAE and Dubai offer stronger expenditure capacity to their people compared to other nations, thanks to higher living standards and more flexible tax laws. Also, for years, Dubai has received much interest from investors worldwide, making it more desirable for investors.
Dubai, known for its continuously-evolving economy, offers a wide range of investment opportunities for people. These opportunities have short-term to long-term and moderate to heavy participation, based on the investor’s interest. Let’s Delve Deep into some of the options.
When it comes to capital investment, investment in stocks is a no-brainer. People trade in ownership of different enterprises by investing in stocks. This allows them to hold a share of the business capital.
For investors with a good grasp of company performance, the stock market is the best place to put their money. Nevertheless, inadequate market research and awareness might lead to a huge loss for investors.
There are two main stock markets in Dubai:
- The Dubai Financial Market is a Sharia-compliant exchange that was the first to get Initial Public Offering (IPO). The SCA regulates the DFM, which trades shares of firms based in the UAE, Oman, Bahrain, Kuwait, and other Gulf nations.
- NASDAQ Dubai: It accepts local and foreign firms, regardless of market capitalization. NASDAQ allows customers to trade REITs (Real Estate Investment Trusts) and stock derivatives and is controlled by DFSA.
2. Real Estate
The cost of living in Abu Dhabi is cheaper compared to the United States or European countries. An apartment in the heart of Abu Dhabi costs AED 1,050 per square foot, whereas a square foot in London costs an equivalent of AED 5,300.
Rental returns on suitable property investments in Abu Dhabi could range from 7 percent to 11 percent. On Yas Island, for example, the minimum price for a 1-bedroom flat with a living size of 611 square feet is AED 427,000.
The annual minimum rental cost for a one-bedroom apartment here is AED 48,000, with a projected return on investment of 11 percent.
The city’s exceptionally favorable tax circumstances, particularly the lack of property taxes and stamp fees in other worldwide real estate markets, make it a particularly appealing investment environment.
Its location primarily determines the earnings made from a property purchase. Consequently, the following are the best sites in Dubai where investments will pay off handsomely.
- Sustainable Communities
Sustainable communities are now the next big thing in the real estate market. Sharjah, setting its example with such a community(SSC) has introduced modern 3, 4, and 5 bedroom villas with advanced features.
The city has economical and high-end housing and is one of the city’s fastest-growing locations. As an investor, you can get plenty of options. The structure in this housing society is a mix of traditional and modern architecture. The diverse urban location provides high-end residences at one of the best prices.
The central bank and government, centralized authorities with total power over the money, regulate and control fiat currencies. Centralized authorities in charge of money could get corrupted, and they may not provide people with total control over the funds they deposit with them.
Meanwhile, Bitcoin and similar cryptocurrencies provide investors with an entire control over their money and total transparency over its movement.
Gemini’s 2022 Global State of Crypto report shows that the entire venture capital investment in cryptocurrency and blockchain has surpassed USD 30 billion, with over USD 10.5 billion coming in just the fourth quarter of 2021.
4. National Bonds
National Bonds is managed by the Dubai Bonds Company and is 50 percent owned by the local government. It is a Sharia-compliant investment plan to deliver low-risk savings to UAE residents.
Because of their safety, liquidity, and higher interest rates in comparison to banks, National Bonds are one of the most popular investment alternatives for those seeking fixed profits.
Bonds have a three-month holding period and can be redeemed over the counter at specified money exchanges. This demands a minimum investment of AED 100 and people can purchase 10 bonds each for AED 10, or one bond for AED 100. There isn’t any limit on how much investment you put in bonds.
National Bonds can be purchased via banks, money exchanges, and online. The minimum investment amount is AED 3000, with extra top-ups in AED 100 increments.
UAE is an opportunity hub for all businesses. And you can make use of crypto, real estate, stocks, and National bonds to get the best value for your money.