Investment Options For Expats In Dubai

investment options

As one of the world’s largest economies, many people from all over the world have flocked to the UAE to establish their businesses and careers. In 2021, the total number of expats in the country even reached as high as 8.84 million, with Dubai having 85% of its population be made up of the said class of individuals. This caused many investment options to open up, attracting more foreign investors for a more robust economy.

If you are an expat in Dubai planning to build your wealth, look into the investment options available to you and start securing your future in one of the world’s most stable economies.

Investment Options for Expats

1. Real Estate

The factors that determine the stability of the real estate market in a particular place are socio-economic conditions, technology, demographics, and government policies. These affect the price and demand of properties, building the relationship between economic conditions and the real estate market itself. To illustrate, government policies, like tax deductions, could boost demand for real properties, while socio-economic conditions, like economic stability, can influence prices.

Fortunately, in Dubai, all these conditions are met, as the UAE’s economy ranked 25th as the most competitive in the world, while tourist arrivals and foreign migrations continue to rise as the COVID-19 pandemic eases. Considering all these key developments, expats can expect high return investment in Dubai’s real estate market in the long run.

2. Stocks 

Dubai has two stock exchanges: the Dubai Financial Market (DFM) and the NASDAQ Dubai. In the first quarter of 2022 alone, a 17% increase in the profit of DFM was reflected, while NASDAQ Dubai continues to bring together the best of international standards by listing domestic and international companies regardless of size. These factors provide expats not only various stock options where they can engage in, but also ensure that trading activities in the emirate are robust, giving them access to high potential returns and better investment opportunities.

3. Gold

Dubai, known as the City of Gold, has about 29% market share in the global gold trade, housing 1,200 tons of the precious metal worth about $41 billion. The industry also has a great contribution to UAE’s economy, as 4086 firms now operate in the emirate, making it a stable industry to invest in. As tourists, immigrants, and residents continue to purchase this precious metal, many companies also continue to launch their gold businesses both in the mainland and in Dubai’s free zones, securing the assets of expats as they invest in the industry, given how robust the market is becoming.

4. Mutual Funds

Mutual fund, being a type of investment that brings together the assets of various investors and distributes them to various stocks or bonds, is one of the ideal options for expats. This kind of investment diversifies risk, securing the hard-earned assets of foreign investors. As a result, should one of the industries they invested in face price and market declines, they have other assets they can look into and ensure that they would still have returns.

Invest in Dubai

If you are an expat looking into these options to start investing in the emirate’s rich and robust economy, it is always best to engage the services of investment management firms in Dubai to ensure that your financial plans and portfolios adhere to current market trends. Reach out to the experts at AIX Investment and start your journey safely.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.