The UAE has everything to offer, from a luxurious lifestyle to tax-free income. The attractiveness has lured many expatriates from across the world to settle down in the country.
But, leading an enjoyable and stress-free lifestyle is not an ideal way of life. One needs to think and implement some steps to secure his and his family’s future too.
It is not at all a good idea to overspend. It would help if you made investments in some assets. In the UAE, there are many investment options that even expatriates can make. They can make substantial profits from their investments.
Here are the investment options for expatriates in the country:
Investing in a real estate property is perhaps the best investment option in the UAE. If you buy a house in the United Arab Emirates, it can enable you to leverage significant benefits over the long term.
It is an excellent idea to study the country’s property market before you make any property purchasing decision. It will help if you assess the economic growth of the country beforehand. In this context, it is good news that the UAE has one of the fastest-growing economies globally. Hence, investing in a property in the country will entail profitable returns.
In addition to notable economic growth, some of the emirates, such as Dubai and Abu Dhabi, are fantastic tourist destinations that attract people worldwide. It is also one of the reasons that add significant value to property purchases in the country.
An expatriate can expect a good return on investment from property purchases in the UAE.
Bonds are safe and risk-free investments that expatriates in the UAE can consider. Among them, the ones who are risk-averse, bonds suit them the best.
The upside of bonds is that they offer higher returns than other investments, like fixed deposits or certificates of deposit.
Bonds are debt instruments companies issue and offer higher interests. Bear in mind that bonds are not similar to stocks. Investors get the final value upon the maturity of a bond.
There is an exciting thing to know when it comes to bonds in the UAE. Interest is considered haram in the country as per Islamic laws. As such, bonds in the country are dealt with in terms of Sukuk.
But, some bonds in the country are dealt with in conventional terms. You can purchase national bonds with a minimum of 100 dirhams and multiples of 100 dirhams. And you can redeem them at any exchange house after a minimum holding duration of 90 days.
Stocks are perhaps the best investment for expatriates in the UAE. It is the first type of investment that comes to one’s mind while considering investments. If you are among those who do not know what stocks are all about, it will help if you keep in mind that stocks are the trading of equity of different companies.
But stocks are also volatile investments as they are prone to market movements. Therefore, it is essential for you to research and analyze the market trends before investing. You need to understand the market growth trend before you put money in stocks, which are not the options for risk-averse investors.
You can regard mutual funds as alternatives to stocks. Mutual funds are an affordable long-term investment option for investors.
It will also help if we speak a bit about mutual funds to develop an idea if you are not aware of what they are all about.
A fund manager manages mutual funds by investing the money he collects from investors in bonds, stocks, securities, etc. In the process, what he does is that he splits the money into smaller parts and invests in various instruments. It helps in lowering the risk exposure.
As such, mutual funds are one of the best investments for expatriates in the UAE who can spend small amounts of money. Mutual fund investors can make profits sometime after the investment. And it is something you should keep in mind that mutual funds entail profits in the long run. It means that the longer your investment, the higher are the returns.
In the UAE, there are many banks and financial institutions, like Citibank and HSBC, that offer mutual fund investments.
Gold is the safest investment option. For expatriates, it is perhaps the best investment option in the UAE. When you think about gold, Dubai certainly comes into your mind. Why? It is because Dubai is the land of gold.
Investing in gold is a good investment option because it has a good resale value. You can sell gold anytime, making a profit. As such, expatriates in the UAE can consider investing in gold to gain profits in the long and medium-term.
But, one needs to be careful while investing in gold. Akin to stocks, the gold market changes regularly. As such, you should assess the market price of gold before investing and invest at the right time to elicit profits.