Market Insights: Investments

Investment options in the United Arab Emirates

The United Arab Emirates (UAE) has become a dynamically developed economic hub of the Middle East during recent years.

Even during the international financial crisis, UAE was able to become the most important foreign trade partner of the German export economy in the Arabic region. There’s a wide range of investment options available in UAE, such as real estate, the stock market, mutual funds and bonds, gold and deposit accounts, and e-Saver accounts.

Real estate is one of the heavily favored investment

Investing in real estate is one of the heavily favored investment options by investors from all across the world. The values of properties in major cities like Dubai are less than cities like London, Sydney, or New York. Also, the UAE located centrally between the eastern and western worlds, it leads to the development of business in this region and has eventually led to an increase in demand for real estate properties. The country also supplies high-quality construction. All those aspects have made Dubai a hotspot for real estate investment. On the other hand, many individuals move to the UAE for employment, thus increasing the demand for rental housing. Also, Dubai is a popular place for tourism and business opportunities within the city.

Two types of stock exchanges in Dubai

There are two types of stock exchanges in Dubai, which function under the care of Borse Dubai, namely DFM ( Dubai Financial Market) and NASDAQ Dubai. There are many options in the UAE for a stock investor, which offers great returns in the short and the long run. Moreover, the UAE offers the chance to invest in mutual funds and bonds too. As the collecting interest is forbidden in Islamic culture, most bonds are traded as Sukuks, an Islamic financial certificate. Still, some bonds are traded to the western format. Furthermore, mutual funds are also available within both the Sharia-compliant and non-Sharia-compliant formats.