What are the Investment Options in Dubai?

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man checking investment options in dubai

We live in a world where boundaries are very transparent. Many of our daily household products are sourced from around the globe. However, when it comes to investments, somehow we tend to confine ourselves to the geographical boundaries of our country. 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?

Why to invest in dubai

So, what parameters should one consider before investing in global cities like Dubai? Here are some reasons why investment opportunities in Dubai are sought after by most investors:

  • It is advantageously located between east and west, connecting Middle-East, Asia, Africa and Europe.
  • Dubai stands proudly among the list of 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 a favorable business regulation to encourage foreign investments.

New to investment?! This guide will surely help you!

Where to invest in Dubai?

Lady thinking where to invest in dubai

Let’s look at some of the best investment opportunities in Dubai to help you get started:

The Stock Market

There are two stock exchanges in Dubai:

  1. The Dubai Financial Market (DFM) – The DFM was established in the year 2000, since then it has become the preferred exchange for trading in shares of the neighboring Gulf countries. It is regulated by the Securities and Commodities Authority (SCA) which directly reports to the Economy Minister.
  2. 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

Mutual Funds and Bonds

Like stocks, Dubai offers you the opportunity of investing in mutual funds and bonds too. In Dubai, since interest rates are considered ‘haram’, most bonds are traded in the form of Sukuks and a few in the western format. Even Mutual funds are available in the Sharia-compliant and non-Sharia-compliant formats.

Real Estate

Of all the investment opportunities in Dubai, investment in real estate has been the most favored one by investors around the globe. There are many factors that make real estate investment desirable for investors.

For starters, the property prices in Dubai is still 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 development of business in this region. This has subsequently led to an increase in the demand for real estate properties. Builders have ensured that they provide quality constructions too. All these aspects put together have made Dubai the hotspot for real estate investment around the world.

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 relaxed home loan criteria and quick disbursals, they are helping in increasing the number of buyers purchase properties every day.

If you are not planning to live but want to earn rental income from your property investment, then Dubai is 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. This means an increasing number of people come to Dubai for employment, which simply translates to an increased demand for rental apartments. Also, the rental income is on par with the global standards.

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.

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 be taking with their investments. Real Estate investments are easy to understand and do not involve any complex calculations.

Finally, owning a property is an asset for life. It grows in value, provides regular income and can be used as a collateral if you ever need urgent funds in the future. All in all, it is a complete investment and Dubai is the city which ensures that you make the most out of your property purchases.

Summing up

These are the best investment options in Dubai. While stocks, bonds and mutual funds have their own benefits, investing in real estate is the simplest and highly recommended option. With the World Expo 2020 just a couple of years away, Dubai market is expected to grow exponentially having an impact on property values too. If you are thinking about where to invest in Dubai, then the answer is simple – Real Estate!

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