In this regards, this article will try to pick out the the best investments in the UAE for 2018.
It should be noted that these investments are not exhaustive in nature and serve as a guide for investors looking to go beyond having their cash parked in a saving account.
Furthermore, it is important to keep in mind that all investments carry risk and you should do thorough due diligence from your end and never invest more than what you can afford to lose.
Having said this, let’s look at the 3 best investment opportunities in UAE:
The meteoric growth of UAE makes property easily the hottest sector of the country. It is simply astonishing to see the rate at which buildings are being constructed in the country and the overall boom of the sector.
For example, take the emirate of Ras Al Khaimah (RAK) that is capitalizing on its natural beauty and moving progressively to become a major tourism destination. According to Ras Al Khaimah Tourism Development Authority (RAKTDA), there was a growth on 19 percent during 2017 in the overall number of tourists visiting the emirate.
Furthermore, consider the Dubai Silicon Oasis (DSO) area in Dubai. A few years ago, it was considered to be a place in the middle of the desert (well, people used to say this about UAE!) but now it is a thriving residential and commercial community, thanks to the aggressive expansion of Dubai.
If you consider expats, it is quite prudent to buy their own home if they plan to stay in the country for long. In an ideal scenario, they will be paying roughly around the same amount as monthly installments as their rent but will be building an asset in the process. So, basically, it is like using our rent money to invest. On the other hand, a property can be purchased to rent out to others or to be converted into a commercial property. This will provide a steady source of regular income in the form of rent.
Mutual funds and ETFs
Mutual funds are an excellent option for those looking to invest passively. It is an extremely convenient way to take exposure in the market that offers built-in diversification and stress free mechanism. Basically, you invest in an instrument that is a pool of investment managed by professional fund manager.
There are different mutual fund products to cater to the different need of investors. Once you have invested in a mutual fund, you do not have to worry about the day to day movement of the market. The fund manager for any corporate firm of the mutual fund is taking care of that for you and usually they are responsible for your investment.
I admit that this is the most controversial option in the list and will warn everyone beforehand that investing in cryptocurrences is extermely speculative and currently, this market is largely unregulated. Therefore, anyone considering to invest in cryptocurrencies should be mentally prepared it is possible that they may end up losing all their investment.
Having said this, there is a lot of potential in cryptocurrencies and the underlying technology of blockchain. In its unique way, it kind of resonates the exponential growth of UAE where it has risen above all odds to mark a place of its own in the world.
You may have heard about Bitcoin, the biggest digital currency, which is the cause of much debate nowadays.
Therefore, if you are willing to take risk in hopes of reaping potentially huge rewards, you should allocate a portion (10% max) of your investments in cryptocurrencies.
The UAE offers a vast variety of investment opportunities and those looking for a high ROI should definitely consider investing in property, mutual funds, and/or cryptocurrencies.
"I do think Bitcoin is the first [encrypted money] that has the potential to change the world.”