4 Investment Options in Dubai For Expats
Foreign investments in Dubai are regulated by the UAE Federal Law No.19 of 2018 on Foreign Direct Investment. The law, which was updated in 2020, defines how and in which sectors foreigners are allowed to invest.
However, specific requirements vary from one Emirate to another, and can also change based on each free-trade zone’s requirements.
Investing in Funds, Stocks, and Shares
As part of its financial modernization plan, in 2005, Dubai established the Dubai International Financial Exchange (known as Nasdaq Dubai since 2008). The Emirate further expanded its financial offer in September 2016.
Today, expats looking to invest in stocks, shares, mutual funds, and bonds can start trading with minimal paperwork and directly through Dubai Financial Market (DFM).
While these are some of the easiest and most profitable investments for foreigners, the list of options to diversify your portfolio is nearly endless. Other valid alternatives include Gold, cryptocurrencies, forex, liquid funds, and fixed and recurring deposits.
Thanks to the latest updates to the UAE’s FDI Law, this is an excellent time to invest in Dubai-based businesses. Today, foreigners residing in Dubai can establish a business and retain 100% of the onshore company’s ownership.
Given the thriving economy of Dubai, the high return potential, low personal and corporate taxes, and future growth plans, this might be the best investment for entrepreneurs and experienced business owners – especially now that you no longer need the support of a major Emirati shareholder.
Real Estate and Property Investments
Investing in real estate in Dubai certainly has its pros and cons. However, if you are looking to tap into the city’s ambitious development plan and future growth, real estate investments can offer higher returns, as well as value stability and a low level of investment risk.
Another option to invest in Dubai’s market without purchasing a property is to contribute to real estate investment trusts (REITs) or buy stocks of companies that are investing in real estate.
Savings and Retirement Account Investments
If you are planning to reside in Dubai for years and looking for a passive, long-term investment alternative, savings and retirement account investments might be for you.
Savings accounts are extremely low-risk, provide a high-liquidity asset, and can offer you an average of 4-7% return on investment. On the other hand, retirement accounts don’t provide immediate liquidity, but you can better manage risk according to your tolerance and benefit from greater returns.