How to Invest AED 500 in the UAE?

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With more people becoming financially literate, investing has become a top priority. This notion has been especially common amongst UAE residents. Given that most are ex-pats, they would want to go back home rich. Nevertheless, with the inevitable rising costs of living and growing financial responsibilities, saving remains a challenge. 

As we are experiencing turbulent times, it is needless to say that saving to achieve financial freedom feels like moving a mountain. However, truth be told, regardless of how modest your income is, you can still see your money grow. The secret here is to: always save SMALL amounts in order to INVEST it! You may be wondering how this is possible with the limited income earned. Well, you don’t need to be saving huge amounts. It can be as little as AED 500 only. There are many safe online investment options in Dubai with such low minimum requirements. 

In fact, online investments in the UAE are becoming more popular lately. Not only do they allow you to easily invest in considerably low amounts, but they also provide healthy returns. Now, let’s prove our theory by enlightening you about the various investment opportunities you can benefit from: 

1) Real Estate Crowdfunding Investment Platforms

Since real estate crowdfunding offers multiple benefits, it has been an accelerating trend in the region, particularly in Dubai. Generally, real estate investments have and always are a target for the world’s wealthiest individuals. In fact, real estate is the largest investable asset class and is considered the safest option, in comparison to the other asset classes, i.e. stocks, or crypto. Unfortunately, most people can’t afford to invest in real estate since it requires huge capital. For this reason, crowdfunding platforms break the stereotype by allowing individuals to own property shares in a bid to build a diversified portfolio without the need of having a large capital pool. 

Just recently, a prominent online property investment platform based in Dubai, SmartCrowd, has launched the lowest entry point for real estate within the region. With just AED 500, users can invest from the comfort of their home in less than 5 minutes. The reason people are loving this platform is for its convenience, transparency, and ease of use. By lowering their minimum investment requirement to only AED 500, they have made real estate more affordable and accessible to a greater mass. 

In case you’re wondering how likely this small amount will be impactful, think of it as the snowball effect. When pushing a snowball down the hill, you will notice it growing in size and moving faster. Likewise with investing, when you start investing early with small amounts, i.e. AED 500 or so, it would be much easier than starting with huge capital, i.e. AED 500,000 or more. Thus, the earlier you begin the journey, the more rewarding it would be for you since you can always reinvest those small earnings until they eventually accumulate and lead to bigger returns. 

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2) Stocks and ETFs

Stocks and ETFs are popular investment options for individuals not belonging to the high-net-worth segment. Stocks are pretty affordable since you can buy shares from a range of your favorite companies for less than AED500. It is definitely recommended to buy a variety of stocks, 4 or 5 per se, in order to have a diversified portfolio. Nevertheless, one must keep in mind that enlisting the services of a discount broker instead of a full-service professional is key here to avoid paying high commission fees. Similar to stocks, ETFs, Exchange-Traded funds are also traded on stock exchanges. An ETF is a basket of different stocks. So, it’s like investing in the market as a whole instead of an individual stock, making it a safer option. Hence, ETFs serve as smart investment choices for potential long-term investors. E-toro, an award-winning investment platform, is a great tool to learn how to trade and invest online, whether for stocks, cryptocurrencies, ETFs, or even currencies.

3) Gold

Historically, investors consider gold as a safe investment hedge against inflation. Gold can be bought either as physical possession like gold coins and bullions or it could be bought as stock in gold-mining companies, or even ETFs. Because in times of crisis, gold prices tend to rise, it is wise to buy gold if a recession is expected on the horizon. In general, gold demonstrates a long-standing value and stability especially evident during economic downturns since it recovers faster. Although gold seems to be a prudent investment choice, one must keep in mind that just like any other investment, gold is also subject to demand and supply pressures. 

4) Cryptocurrency

Cryptocurrencies are by far the most intriguing investments of all time. You could be investing as low as 100$ and possibly gaining huge profits overnight. It all depends on the volatility of the currency. They are actually recognized currently as the most volatile investments. So, if you are a risk-averse investor, then cryptocurrencies aren’t for you. Although you could potentially be earning a lot of money, there is a high risk you might lose it all at any minute. A popular, cryptocurrency exchange, Binance, is actually a great app for beginners. It’s quite simple to use and offers a variety of features.

Takeways

In conclusion, no matter how minimal the income, with the right mindset and by prioritizing your finances, you’ll eventually achieve your financial goals. As mentioned earlier, there are plenty of safe investment options offered by prominent platforms within the region. Even if such platforms carefully vet the options listed for you, it is highly instrumental that you always conduct your own research and consult the right financial advisors prior to investing.

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