Exploring Investment Options in Dubai
We live in a truly global world. Most commonly used products are sourced from around the globe. However, when it comes to investments, we often tend to confine ourselves within the geographic bounds of the country we’re native to, or that we’re presently in. This, however, is slowly changing; with people looking at investment options around the world. Investors are seeking opportunities to participate in fast-growing and stable economies by investing in cities like Dubai. In this article, we will look at the various investment options in Dubai.
Why should you invest money in Dubai?
Here are some reasons why investment opportunities in Dubai are sought after by most investors:
- It is favourably located between the east and the west, connecting Middle-East, Asia, Africa, and Europe.
- Dubai stands proudly among the list of the top cities that provide state of the art infrastructure to its residents.
- It offers a plethora of business premises ranging from the mainland to free zones.
- UAE is the third most peaceful country in the Middle East and North Africa (MENA) region.
- According to Doingbusiness.org UAE ranks first in the region for the ease of doing business. This is based on parameters like starting a business, dealing with permits, registration of property, etc.
- Dubai has efficient business regulation systems to encourage foreign investments.
Also Read: New to investment? This guide will surely help you!
Where to invest in Dubai?
Let’s look at some of the best areas of investment available in Dubai to help you get started:
The Stock Market
There are two stock exchanges in Dubai, both of which function under the holding company of Borse Dubai. They are as follows:
- The Dubai Financial Market (DFM) – The DFM was established in the year 2000. It is regulated by the Securities and Commodities Authority (SCA) which directly reports to the Minister of Economy.
- NASDAQ Dubai – This exchange lists both, domestic and international stocks. It also offers trading in equity derivatives and REITs. This exchange is regulated by the Dubai Financial Services Authority (DFSA) – a financial regulatory agency of the special economic zone.
As a stock investor, you have many options in Dubai which can offer great returns
Also Read: Different Types of Returns – ROI/ IRR/ NPV
Mutual Funds and Bonds
Like stocks, Dubai offers you the opportunity of investing in mutual funds and bonds too. Since the collection of interest is considered ‘haram’ in Islamic culture, most bonds are traded in the form of Sukuks and a few, still in the western format. Even Mutual funds are available in the Sharia-compliant and non-Sharia-compliant formats.
Of all the investment opportunities in Dubai, investment in real estate has been the most favored by investors from around the globe. There are many factors that make real estate investment in Dubai, desirable for investors.
For starters, the property prices in Dubai are lower than those in other global cities like London, Sydney, New York, etc. Being located centrally between the east and west has led to the generation and development of business in this region and has subsequently led to an increase in demand for real estate properties. Builders have ensured and delivered quality construction, too. All these aspects put together have made Dubai the hotspot for real estate investment around the world.
Also Read: Should you finance your Real Estate Investment?
For real estate to thrive in any city/region, it is important that the banks and financial institutions make housing loans convenient and easy. This is what most banks in Dubai believe in too. With a relaxed home loan criterion and quick disbursals, banks are helping to increase the number of buyers who purchase properties, every day.
If you are not planning to live but want to earn rental income from your property investment, then Dubai might just be the place for you, too. As compared to the other Emirates, Dubai’s economy depends on a wide range of businesses attracting talent from around the world.
On one hand, this means an increasing number of people come to Dubai for employment, which simply translates to an increased demand for rental housing. As a city, Dubai believes in developing business and tourism. Both of these factors ensure that the demand for property is always on the rise.
It must also be noted that the rental income receivable in Dubai is on par with the global standards, this further stand as a boon for the option of investment in Dubai.
You should never invest in a product that you don’t completely understand. There are many investors who invest in shares or mutual funds based on a tip or advice received from a trusted friend, family member or colleague. This can be counterproductive since such people are unaware of the risks that they might encounter with their investments.
Finally, owning a property is an asset for life. It grows in value, provides regular income and can be used as collateral if you ever need urgent funds in the future. All in all, it is a complete investment and Dubai is a city which ensures that you make the most out of your property purchases.
Also Read: Emergency Fund – What is it and Why?
These are amongst the best investment options in Dubai. While stocks, bonds, and mutual funds have their own benefits, investing in real estate is the simplest and most recommended option. With the World Expo 2020 only a couple of years away, the Dubai market is expected to grow exponentially, having a major impact on property values.
If you are thinking about where to invest in Dubai, then the answer is simple – invest in Real Estate!