how to invest money in uae

Investing is one of the most rewarding opportunities you could make with your money, without a doubt (if done properly). By reading this investing guide, you will be able to know How to Invest Money in UAE by 10 Ways?.Also, you can know,Reading: how to invest money in uae

  • Introduction to the Topic
  • Why You Should Invest Money in the UAE?
  • What to Know Before Invest Money in the UAE?
  • Top 10 Ways Of Invest Money in the UAE
  • What are the Investment Fees in the UAE?
  • Top 11 Things You Can’t Investment in UAE?
  • Is Investing in the UAE will be Good For the Future?
  • What are the Risks for Investing in UAE?
  • What are the Advantages for Investing in the UAE?
  • Watch Oil Analysis of UAE [Video]
  • Top 5 FAQ Session on How to Invest Money in the UAE

Let’s start,

Introduction to the Topic


As an incredibly enticing place to invest, the UAE introduces itself. It has not only achieved outstanding growth but over the years, its investors have been able to reap very lucrative returns.You could be part of this fast-growing economy, too, just by investing in the markets of the country. Saving money is still the highest priority for many people living in the UAE, but sadly only a few can invest a significant portion of their income on a secure retirement or achieve their financial objectives in life.Salaries in the UAE vary greatly. It can go up to a few lacs per month from AED 5000 a month. On average, though, only AED 16,775 is received per month by a UAE citizen. That means that most people don’t even have a lot of money to save or invest in the UAE.Even so, there is no need to end in despair if you are willing to increase your income. According to financial consultants, you will still see your money grow, regardless of how big or small you save each month. Your savings must not be piled up. Only invest it! Just invest it!

Why You Should Invest Money in the UAE?

invest_money_in_uaeFive reasons to invest in the UAE are as follows:

1. Growing Economy

When a person intends to invest in a foreign country, the economic growth of that country is one of the essential factors he takes into account. The fascinating thing about Dubai now is that all numbers and statistics show that for the next few years, Dubai would have a continuous economic boost.Though rich in petrol in the Middle East and UAE, the economy of Abu Dhabi has been hit by the current oil crises, and Dubai has flourished and emerged as a champion of economic planning and growth in the MENA region.


In the UAE, there is no income tax, but the minimum VAT (Value Added Tax) imposed on the purchase of these services and goods is 5%.Only oil companies and foreign banks have corporate taxes imposed. Excise tax is imposed on those products that are usually detrimental to the environment or human health.

3. Ease of Doing Business

The UAE ranked 11th rank worldwide and 1st rank regionally, as per the Doing Business 2019 survey. The UAE received excellent rankings in the following indices:

  • Getting electricity – 1st rank
  • Paying taxes – 2nd rank
  • Dealing with construction permits- 5th rank
  • Registering property – 7th rank
  • Enforcing of contracts – 9th rank
  • Protecting minority investors – 15th rank

4. Demand for housing

Investing in the UAE, particularly in Dubai, could in the near future offer buyers a reasonable possibility to multiply their fortunes because, in the next decade, the country will prepare itself for a unique influx of tourists.Khan said assets indirectly or directly linked to the tourism industry, furnished apartments on short-term leases, affordable hotels, commercial spaces, shops, and retail outlets near famous landmarks or recreational parks, regardless of the fluctuations in the real estate market, would remain in demand and will be a secure and appreciative investment.The UAE is your oyster if you or your client are vying to invest in the real estate market. The possibilities are endless now’s the time.

5. Political Stability

The UAE is still politically stable, despite regional tensions. Emirate rulers are highly proactive and are interested in everyday governance. One might say it’s among the safest countries to invest in in the MENA region.The UAE has great financial and monetary stability as well. There are substantial credit facilities and ample liquidity in its well-developed, sophisticated banking system.

What to Know Before Invest Money in the UAE?

invest_money_in_uaeBefore investing money in UAE, here are 5 things that you really must know.

1. Risk tolerance

It is vital to consider the difference between risk-taking willingness and risk-taking ability and to keep these variables aligned. It is true that greater risk can lead to higher returns, but it might lead to higher losses just as easily. Always invest in accordance with your risk appetite and loss tolerance.

2. Embrace long-term investing

It is good to put a strong focus on your long-term investment goals while evaluating the best UAE investment opportunities. People who invest more often than not end up burning themselves with a short-term, quick-profit mentality.

3. Mark out your budget

In order to know how much buying power you start with, it is important that you know where you stand financially. The UAE Central Bank has developed mortgage caps for foreign investors in the last year, and if you go over your budget and bounce a check, this could result in heavy fines. They take really seriously this kind of thing, so be cautious!

4. Liquidity needs

Prior to investing money for investment, this is a key point to remember. You need to have the best understanding of the liquidity needs you predict. E.g., after 10 years, you might plan to take out cash to finance your children’s college education, or after 5 years, you might plan to buy a larger home.If, in this case, you have taken into account your liquidity needs. You would be able to finance your investments correctly and to adequately balance the profile of your investments according to your liquidity needs.

5. Portfolio structure

How you divide your money among these assets is the portfolio structure. Depending on your investment objectives and present situation, choose a portfolio structure (time horizon). It’s better to get more bonds or bond funds if you are near to retirement.You need more stocks or equity funds if you are young. If you are more risk-seeking, investments in bonds, equity funds, and REITs would be greater than if you are risk-averse.

Top 10 Ways Of Invest Money in the UAE

1. National Bonds

National BondsIt is a good idea to invest in national bonds, provided the stability, liquidity, and slightly good return on investment they provide.National bonds are easy to buy, and you can purchase national bonds online from money exchanges and banks. The lowest investment contributes to 100 AED. Even so, in order to reduce monthly payments, it is advisable to maintain a minimum of AED 3000.The holding period is 3 months, and through some money transfers, you could redeem the bonds across the counter.Future advantagesRead more: how to do a risk analysis for a business planIn the UAE, national bonds are obviously a good investment choice. A fair amount of money could be invested and positive returns reaped by people. National Bonds also come with the advantages of fantastic incentives and gifts, in addition to strong profit prices. Bonds have several advantages over stocks, like relatively low volatility, high liquidity, legal protections, and a number of term structures.Risk

  • For bond investors, increasing interest rates are a key risk. In general, rising interest rates would lead to declining bond prices, indicating investors’ desire to get an attractive interest return on their money somewhere.
  • The purchasing power of a bond’s potential coupons and the principal is diminished by inflation. Since bonds tend not to give extremely high returns, as inflation increases, they are especially vulnerable.
  • This is the possibility that when they try to sell, investors will have trouble finding a buyer and will be forced to sell at a large discount to market value.
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2. Mutual funds

Mutual fundsYou might like to invest in mutual funds if you do not have the time to do any research on your own to select the best stocks, ETFs, or other small investment options to park your little savings in.You would benefit from the experience of a fund manager by selecting this option, who would do the homework for you, like choosing the right securities or stocks and bonds, which would help your money grow. The great news is, to start buying shares, you don’t really need hundreds of thousands of dirhams.Future advantagesIn order to diversify an investor’s financial portfolio, mutual funds in the UAE are a good investment choice. Over time, investing in top mutual funds will help you sustain and expand your wealth. Advanced portfolio management, dividend reinvestment, ease, risk reduction, and reasonable pricing are benefits for investors.Mutual funds enable you to regularly invest a small amount to create a corpus for your long-term financial objectives. Ideally, in order to accomplish your objectives, you must define your long-term goals, determine their current costs, and provide for annual inflation to find your target corpus. Over the last 20 years, the mutual fund industry has seen a large growth rate, which was a phenomenal CAGR of 18 percent.Risk

  • All investment tools are subject to market risks, such as mutual funds, stocks, bonds, and ETFs. In general, the nature of the market is unstable and dynamic and increasing the likelihood of a fluctuation in the rate of return accompanied by a loss of initial capital.
  • Suppose you have spent 10 years spending AED 100 and ended up AED 95 because of the changes in the market. In real-time scenarios, however, investments are very unlikely to yield negative returns for 10 years. Taking into account the current market trend and pattern, this investment will be returned from approximately 7 to 10 percent.
  • It is important to note that investment in short-term mutual funds is more likely than long-term investments to decrease in value.

3. Gold

goldDubai is the land of gold, a precious metal. The gold price continues to fluctuate every day. So you have to study the market and invest at the right time before investing in it.Besides the jewelry, gold coins, gold bonds, gold ETFs, etc., may be spent on a variety of other ways.Future advantagesAnother type of saving that has a strong resale value is gold. It could be sold at any time, and you can make a good profit. It is a secure investment which, in the long run, helps. While in the short term, the price of gold could be volatile, it has always retained its value over the long term. It has acted as a hedge against inflation and the erosion of major currencies over the years and is, therefore, an investment that is well important to consider.As the prospects of gold reverting back to historic highs and doubling over the next 3 years are becoming comparatively shinier, the consumer-beneficial downward trend is never seen to last for long.Risk

  • Gold is a high-risk and very volatile investment as well. The value of gold is not reflect underlying earnings, unlike bonds, common stock, and real estate. Gold is an investment which is purely speculative.
  • Impurities in gold are one of the risks involved.
  • Another concern with physical gold investment is keeping it safe from the threats of robbery, burglary, housebreaking, etc. Investors lose the manufacturing expense at the time of resale, in addition to the purity and safety risk. In the case that the issuer of a gold instrument issues the instrument without investing in gold, investors can lose money.

4. The Stock Market

The Stock MarketStock refers to the trading of equity in various companies as the first and foremost option that comes to anyone’s mind; it is wise to research, evaluate and appreciate the market when discussing investments before jumping in. Stocks seem to be the most risky investment choice of the lot and are not ideal for people who are risk-averse.In Dubai, there have been two stock exchanges, both of which operate under Borse Dubai’s care. They are as mentioned:The Dubai Financial Market (DFM)The DFM was created in the year 2000. The DFM is governed by the Securities and Commodities Authority (SCA). The SCA reports to the Minister of Economy directly.NASDAQ DubaiThe NASDAQ’s Dubai branch has listings of both foreign and domestic stocks. Possibilities to trade in equity derivatives and REITs are also on offer. The Dubai Financial Services Authority (DFSA), a Special Economic Zone financial regulatory authority, regulates this trade.You have many opportunities in the UAE as a stock investor that can offer good returns in the long and short run.Future advantagesStocks could be a valuable part of your portfolio of assets. It will help you achieve your savings, secure your money from inflation and taxes, and increase income from your investments by owning stocks in various companies.Stocks are a sound way of profiting from future inflation and the rising profits of a well-run business over the long term. Over time, while the prices of individual stocks rise and fall regularly, the stock market continues to rise in value. Investments in stable businesses that are able to expand tend to make investors profits.Risk

  • Stock prices could be very volatile and unpredictable, both locally and globally, subject to various market and economic factors.
  • A listed business in which you invest can experience a significant profit decline or even go bankrupt. This may be the result of several factors, like bad management, market slowdown, and competition.
  • To prevent any uneven dissemination of information and opportunities for insider dealing, a stock may be suspended from trading and to ensure that trading is conducted on a fully informed basis. During the suspension, during which time the price can move due to both market and business risk changes, you would not be able to buy or sell a stock.
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5. Exchange-traded funds

Exchange-traded fundsExchange-traded funds (ETFs) could be bought via a broker at low rates, much like stocks, and the investor could invest as many shares as they like. To obtain a diversified portfolio that could include stocks, bonds, and commodities, ETFs utilize pooled money from a variety of individuals. Like bonds, they are traded and could give a good return.As diversification is the most important consideration when investing, however small or large seed money is, a portion of your Dh2 000 should be reserved for some ETFs.Future advantagesThe ETF benefits are lower prices, instant diversification, tax efficiency, liquidity, sector investment, small-scale procurement, and availability of a broad range of alternatives and even exotic investment.Risk

  • In comparison to mutual funds, an ETF with zero transaction costs cannot always be purchased. Spreads can also differ over time because one day they are small and the next large. Trading expense in your returns will quickly eat.
  • Market risk is the single biggest risk in ETFs. The markets are growing (yes!). ETFs are also just a wrapper for their underlying investments.
  • ETFs have always been a predominant risk factor in the exchange of a physical product, although they are notoriously tax-efficient. An ETF SPDR Gold Trust (GLD) includes gold bars and closely monitors the price of gold.

6. Deposit accounts and e-saver accounts

Deposit accounts and e-saver accountsThese are accounts specially built for banks to provide consumers with higher returns. Deposit accounts are from 1-24 months’ fixed deposits with greater rates. Likewise, banks like HSBC, Emirates NBD, or Mashreq provide saving accounts with an interest rate higher than most savings accounts. These accounts are not provided with debit cards to prevent withdrawals.Future advantagesMoney is sometimes put into an interest-earning account where there is very little chance of losing the deposit.Though higher-risk investments like stocks can yield greater returns, the concept behind investing consists of allowing a slow growth of the money with little to no risk involved.RiskThey pay low-interest rates, meaning you have a bad return. Indeed, your returns can be so poor that you consume the value of your deposit.

7. Property investment in the UAE

Property investment in the UAEUAE property is a famous asset class that has for nearly two decades been on the radar of international investors. Handsome gains have been made, and in what was, for years, seen as a boom-and-bust, get-rich-quick-if-you-can industry, fingers have been burned.For most investors, the roller coaster ride is no more. Tighter regulations limit real estate speculation, and the market is thus much more stable – and affordable. Real estate consulting company JLL noted that in the second quarter of 2019, Dubai rental and selling prices decreased 11 percent and 9 percent, as opposed to the same time last year.Villa prices fall by 5% and 9% in the same era, respectively. JLL in Abu Dhabi reports that the rent of apartments decreased 11 percent a year in the same period, with prices expected to decrease further in the year-end. Prime villas went down 6% and apartments down 15% over the period.Future advantagesMany residents assume that it is a good investment to buy property in Dubai and that property prices are reasonable for investors.However, Dubai is still a secure and attractive choice for the purchasing of property. The higher ROI for buyers and investors is among the main advantages of buying a house. In the most important communities in the city, there is an ROI of more than 6 percent in the case of sales of apartments.Risk

  • One risk of buying an investment property is that, for a prolonged time, the property would be vacant. With no tenants to pay the rent, without the additional rental income, this requires you to pay the mortgage repayments.
  • One of the risks of investing in property is the vulnerability of your investment to damage. Since it is a tangible asset, there is a risk that anything at your expense could happen to it, impacting its profitability. Such risks involve natural disasters, tenant damage, fire, and theft or vandalism.

8. Pension investments in the UAE

Pension investments in the UAEExpats working in the UAE are currently getting a final administration tips from their manager. That’s determined on their critical last-drawn pay and how long they have been with the company. Nonetheless, as of late in the UAE, another deliberate advantages conspire has been proposed.Read more: How to Grate Zucchini 4 WaysUnder the agreement, the fulfillment of administration responsibilities by representatives would be obtained from bosses, and the entirety would be added to the advantage of the worker. The date of dispatch is as yet uncertain, but those who are involved in the scheme will have the option of contributing a higher month-to-month sum on the off chance they want.Future advantagesIn addition to a pension, however, having savings and investments will give you the best of both worlds – employer contributions and tax relief that can come with a pension, with savings or investments allowing you to access lump sums whenever you want without paying tax on them.RiskThese are traditionally categorized in terms of the conventional risks faced by pension funds: market risk, operational risk, actuarial risk, credit risk, enforcement risk, governance risk, risk of financial crime, risk of outsourcing, etc.

9. Business investments in the UAE

Business investments in the UAEIn a free zone, expats and non-resident foreigners may create a UAE company with 100% ownership (i.e., no local partner is required). This is a protected area where taxes or limitations on manufacturing, jobs or trade do not apply in a similar way as they would on the mainland. In general, a UAE free zone company is easier to build and receive licenses for.An onshore firm may also be set up by expats. The costs of setting up (and running) an onshore UAE company are usually higher since this corporation needs a UAE citizen to have a 51 percent stake.Future advantagesThe corporate tax, withholding tax, VAT, import/export tax, and capital gains tax are not subject to companies incorporated in Dubai.More than 66 international double tax avoidance treaties have been signed by the UAE with major countries such as China, the USA, and most EU members. As there are no exchange restrictions in place, foreigners will have convenient access to local currency.

10. Funds

FundsA host of investment opportunities for funds are available in the UAE. Equity funds, Growth Funds, Value & Fixed Income Funds, Sector Funds, Active & Passive Funds, Shariah Compliant or Non-Compliant Funds are all funds. According to your financial goal, you could select any of these fund options.

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What are the Investment Fees in the UAE?

How to Invest Money in UAESome of the fees received in the UAE by local governments are listed below.

1. Housing fees

According to the rental contract, the Dubai government levies housing fees equal to 5% of the rent.

2. Innovation fee

The government of Dubai levies an AED 10 innovation fee on any transaction. To improve the emirate’s innovation environment, this sum goes to the Dubai Future Foundation.

3. Road tolls

In order to collect road tolls in the emirate, the Abu Dhabi government passed Law No. 17 of 2017. It would be the responsibility of the Department of Transport to collect tolls from vehicle owners who travel through the toll areas.As vehicles, along with taxis, pass through the toll gates, the Dubai government collects an AED 4 road toll. The toll is obtained via RFID.

4. Knowledge fee

The Government of Dubai levies an AED 10 knowledge fee on any transaction. The amount is being used to help cultural and educational projects.

Top 11 Things You Can’t Investment in UAE?

How to Invest Money in UAE

  • Forged currency and a duplicate one.
  • Printed publications, photos, oil paintings, images, cards, books, stony sculptures, and mannequins magazines that contradict or intentionally suggest immorality or turmoil with Islamic teachings, decencies.
  • Used, inlaid, and reconditioned tires.
  • 3 layers fishing nets.
  • Narcotic drugs of all types (Hashish, Heroin, Cocaine, Poppy Seeds, Hallucination Pills, etc…).
  • Crude Ivory and Rhinoceros Horn.
  • Items intended for importation from boycotted countries.
  • Cooked and homemade foods.
  • Radiation polluted substances.
  • All materials include original engravings, prints, lithographs, sculptures, and statues—devices and machinery for gambling.
  • Goods originating in Israel or bearing Israeli trademarks or logos.

Is Investing in the UAE will be Good For the Future?

How to Invest Money in UAE

Future growth analysis of UAE

In a recent report, the UAE is expected to hit an average real GDP growth rate of 3.8% between 2019 and 2023, backed by higher investment and higher consumer spending. It is also predicted that recent measures to minimize the cost of doing business in the UAE would develop more small businesses.The future for the non-oil sector is also brighter than in recent times; the report estimated that between 2019-2023 it will grow by an average of 4.1 percent, relative to 2.8 % in the 2014-2018 period.The Chamber assumes that the GDP growth of the UAE over the next five years would be driven by the transport and communications sector of the country that is anticipated to record GDP growth of 7.9%, accompanied by construction (4.2%) and real estate and business services (3.8 percent).

What are the Risks for Investing in UAE?

How to Invest Money in UAE

1. Financial risk

“The financial risk is rated “Moderate” for the UAE. The basis for this rating was that the Dubai International Financial Center (DIFC), a free trade finance zone, is DUBAI (now at greater risk than other Emirates) and is regulated by Dubai Financial Services Authority, an agency recognized in the federal government of the United Arab Emirates. Government rules, therefore, hold risk levels moderate.

2. Banking sector risk

The debt of the Dubai World caused banks to hesitate to lend before they recover entirely from it, where UAE banks still have to book these non-performing loans. New Central Bank regulations led to a 35.5% rise in loans in 2011. The banking risk is usually rated as “stable” in the UAE.

3. Economic risk

In the UAE, particularly in Abu Dhabi, which accounts for 90 percent of the total UAE oil reserve, the oil sector is the dominant sector. Thus, high oil prices are a very big supporter of the UAE economy.A start to stability is seen in the non-oil sector, like trade, finance & real estate, particularly in Dubai, which accounts for 70 % of the total UAE percentage. Today, the building industry is depressed. In total, the UAE’s economic risk is rated as “low to moderate.”

What are the Advantages for Investing in the UAE?

How to Invest Money in UAE by 10 Ways [Investing Guide]

  • The UAE has a liberal policy which encourages foreign individuals and businesses to invest and take part in the process of mutual growth.
  • The implementation of VAT has increased government revenue spent on infrastructure projects.
  • Competitive cost of energy, in electricity, water, and oil terms
  • Availability at cost-effective rates of skilled and unskilled labor

Watch Oil Analysis of UAE [Video]

The UAE’s largest energy producer, Abu Dhabi National Oil Co, is accelerating exploration and oil growth projects to raise its crude production potential from over 4 million b/d now to 5 million b/d by 2030.Oil-rich Abu Dhabi, though discussing its greenhouse emissions and the carbon intensity of its oil and gas operations, aims to achieve this aim. As it plans to decrease its GHG intensity by 25 percent by 2030, ADNOC says its oil and gas output is low cost and low carbon.

Top 5 FAQ Session on How to Invest Money in the UAE


How to Invest Money in UAE by 10 Ways [Investing Guide]One such chance that should not be ignored is an investment opportunity in UAE. You could be part of this fast-growing economy, too, by only investing in the markets of the country. The United Arab Emirates has sparked growth in the Middle East, providing a large number of investors with an excellent opportunity for investment growth. In the UAE, Dubai is filled with a wide range of investment opportunities. Investors seeking high-interest rates must consider investing in property, mutual funds, and the stock market.Nowadays, to secure their future financially, it has become very vital for everyone to invest their hard-earned money in the right place. Because for any worthwhile returns, saving your money in the bank would hardly be sufficient. So, but if you’re an ex-pat and you are searching for a good investment in the UAE for ex-pats, then you can consider the investment opportunities listed above to make a good return from your invested money.

Bottom Up – How to Invest Money in UAE

So, I hope you got the full idea of How to Invest Money in UAE by 10 Ways? [Investing Guide]Please comment below about your ideas and share this “How to Invest Money in UAE by 10 Ways? [Investing Guide]”. article with your friends.Stay tuned with our website to find out more exciting stuff. Don’t forget to check out our previous articles too.Until the, Read about, What is an ETF and How Does it Work? [Investing Guide]Read more: How to get ungated on amazon

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