The skyscrapers that mark the Dubai landscape remind investors of the property opportunities available in the EAU. In many large cities there are opportunities to purchase both commercial and residential properties to earn money. Real estate provides investors with rental income as well as potential capital gains. Additionally, investors could look to the capital markets for investment returns. You can engage in online trading, which provides investors access to equities, commodities, foreign exchange and cryptocurrencies. Alternatively, you can learn how to invest money in the UAE by contracting a robo advisor like Sarwa, which also offers accounts for residents in Saudi Arabia
Are Many Property Transaction Executed in Dubai?
Dubai is a property hub in the EAU. According to the First Group, there were 69,000 real-estate transaction executed in Dubai in 2017. This is up from nearly 42,000 that were executed in Dubai in 2016. Just like in any location around the world there are 3-rules to property investing. Location, location, location. Some of the more prominent location in Dubai include the area around the marina. The Dubai Sports City location. Downtown Dubai and the business bay are also considered good locations to invest in.
What are the Risks
The risks to investing in the Dubai property market is that the value of real estate suffers when there is an economic contraction. The Dubai real-estate market contributes approximately 7% to the overall growth of the Dubai economy. This means that real estate has a significant pull the economic growth. While predicting future growth can be difficult it seems less onerous to predict volatility in the region.
Investing in the Capital Markets
An alternative way to invest, is to use the capital markets. This includes investments in equities, bonds, commodities, currencies and cryptocurrencies. Each of these capital markets areas, allow you to invest in multiple assets. For example, there are hundreds of different currency pairs, and stock markets around the globe that can handle your investment dollars. For traders who are from the Dubai region there are a multitude of capital market opportunities. The countries that offer opportunities include regions from around the globe. The most liquid indices are in the United States, Japan and Western Europe. There are also opportunities to trade in Saudi Arabia, Singapore and Spain.
What Assets are Available to Trade the Capital Markets?
To take advantage of the capital markets opportunities around the globe, you want to be able to trade a product that provides exposure to the movements of different assets. For example, a contract for differences (CFD), provides traders exposure to underlying assets such as equities, forex, commodities, shares and cryptocurrencies. A CFD broker will offer access to these products. CFDs allow you to buy and sell securities that move in tandem with the underlying products they follow. For example, if the S&P 500 moves higher a CFD on the S&P 500 index will move higher. CFDs are very liquid and allow traders to enter and exit immediately.
There are several different assets that a trader can invest in within Dubai. This includes the Dubai real-estate market. Additionally, investors can trade the capital markets. You can do this be finding a reputable CFD broker that offers securities on several products include equities, commodities, indices, shares and cryptocurrencies.