As an expat or foreign investor seeking the best investments in the UAE, exploring various opportunities that align with your financial goals it’s essential.
UAE has become one of the world’s fastest-developing destinations in recent years. What’s more intriguing about this place is its flourishing speculation and prosperous economy. The high-yielding best investments in UAE have been an important aspect of MENA’s economy in recent years. This has been made possible by the implementation of government programs that attract a big group of investors annually.
But the question remains – “what are the best investments in UAE for expats?” In this post, we will analyse some of the best investments in the UAE while exploring ways to construct a well-diversified portfolio. We will discuss different investment options available within the country and how passive investing strategies can minimize risk through diversification.
Best Investments in the UAE
- UAE ETF
- Gold Rush
- Real Estate Market
- Renewable Energy Sector
- eCommerce Industry
- Education Technology
- FinTech Services
- Gaming Industry
- IT and Web Development
- Critical Minerals
#1 Best Investment in UAE – The "UAE" ETF
Exchange-traded funds (ETFs) have gained considerable popularity among investors due to their similarity to mutual funds, offering diversified investment options while trading like individual stocks on stock exchanges.
One notable ETF in the market is the iShares MSCI UAE ETF (UAE), which aims to track the investment results of an index composed of top 40 best UAE stocks included in the MSCI All UAE Capped Index. The ETF provides exposure to companies within the UAE market, including Emirates Telecom and First Abu Dhabi Bank, allowing expats to invest in the UAE stock market and participate in the country's economic growth.
#2 Best Investment in UAE – The Gold Rush
Gold is one of the best investments for expats in the UAE, especially in Dubai. Dubai, known as the “City of Gold,” attracts gold investors from all over the world. Gold in Dubai has more value other than just being used for ornaments. Gold investing can be made through coins, bars, and funds.
Gold price is trading above $2,000 per ounce, reaching new record highs in early 2024. Analysts forecast gold prices may remain above $2,000 per ounce and reach new highs. Among the factors favouring this are geopolitical uncertainty, the likely weakening of the U.S. dollar, and potential interest rate cuts.
#3 Best Investment in UAE – The Real Estate Market
The real estate market remains one of the best investments in UAE in 2024. Dubai’s real estate market is expected to expand yet again this year, boosted by the projected growth in demand for off-plan properties. The same is true for Abu Dhabi’s property sector, which recorded over AED5 billion ($1.36 billion) of mortgage transactions in January this year.
Investors have the option to invest in the UAE real estate market through Real Estate Investment Trusts (REITs) instead of buying the actual property. REIT such as EMAAR Properties, the first one in the Middle East, and Aldar Properties also have a significant weight in the UAE ETF, around 13% and 5%.
#4 Best Investment in UAE - The Renewable Energy Sector
In line with global sustainability goals, the UAE actively embraces renewable energy sources. According to the International Renewable Energy Agency (IRENA), the UAE has set an ambitious target of achieving a 50 percent renewable energy share by 2050.
Solar energy stands out as a remarkable investment opportunity in the UAE, given its abundant sunlight and expansive desert landscapes. For investors, this means one of the best investments in the UAE, such as exploring solar power projects, investing in solar technology firms, or participating in renewable energy funds.
#5 Best Investment in UAE - The eCommerce Industry
The eCommerce industry has immense potential in the UAE as is currently among the emerging major industries in the Middle East. According to Statista, Saudi Arabia, Turkey, and UAE were the three biggest eCommerce markets in MENA with a market size of 13 billion, 12.5 billion, and 10.7 billion, respectively.
Buying shares of a publicly traded e-commerce company is the easiest way to invest in this fast-growing sector. Once you open an account with an online stockbroker, you can buy shares of established companies on the stock market.
Explore some of best eCommerce Stocks for 2024
#6 Best Investment in UAE – The EdTech
Education technology received a huge boost after the coronavirus pandemic. The Middle East has a good chunk of the population that belongs to other countries. For example, over 80% of the Dubai population is expats (see also How to Invest in Dubai). Hence, there is a huge demand for providing educational services in multiple languages.
By 2027, the MEA market for educational technology and smart classrooms is expected to reach $7,626.1 million. The statistics show that this industry will expand in the upcoming years. One of the most straightforward ways to explore one of the best investments in UAE is through education-focused tech startups.
#7 Best Investment in UAE - FinTech Services
Businesses in the Middle East require someone who can facilitate their finance operations and generate accurate reports regularly. Thus, opening a fintech business in the Middle East is one of the best investments in UAE.
You will have the opportunity to connect with a worldwide customer by starting a FinTech business in this industry. Digital payment systems are currently used by 3.8 billion persons worldwide; by 2025, that figure will rise to 5 billion. You can hire a fintech app development company to help you put up an app and website for your business.
Explore some of Best Financial Stocks for 2024
#8 Best Investment in UAE – The Gaming Industry
Gaming is a multi-billion-dollar industry that is loved across the globe. Being popular in all regions of the world makes it a top business idea to explore in the UAE and Middle East. According to Statista, Saudi Arabia generates the most revenue from video games in the MENA region and Egypt has the highest share of gaming users.
You can hire app developer in Dubai to develop a mobile app that you can then advertise and promote in the region to generate revenue for your business. Alternatively, you can trade and invest in companies that sell gaming products in UAE such as Microsoft, Nintendo, Electronic Arts, Sony, or Roblox.
Explore some of Best Gaming Stocks for 2024
#9 Best Investment in UAE - IT and Web Development
UAE is listed among the top smart regions in the MENA, home to thousands of tech startups. With the increasing demand for IT services in the region, more and more businesses are looking forward to starting their operations in the Middle East. Consequently, there is a huge demand for IT and web development services, including digital marketing, mobile app development, online PR, and online security.
UAE's I.T. landscape is a dynamic and thriving one, fostering innovation, fostering a conducive environment for growth, and offering a plethora of opportunities for both established companies such as IBM, Google, Oracle, SAP or Tata Consulting Services and budding startups.
Explore some of Best Internet Stocks for 2024
#10 Best Investment in UAE – Critical Minerals
Minerals such as lithium, cobalt, and rare earths power the world’s clean energy technologies and electric vehicle batteries. As these resources take center stage with the clean energy transition, the United Arab Emirates (UAE) is also ramping up investment in critical minerals supply chains in a bid to diversify their economic portfolios and carve out a stake in the growing industry.
The highest-rated critical mineral companies listed on the stock exchanges with a strong presence in UAE include Tenaris, Weir Group, Vale, BHP Group, and Glencore.
Are these the best investments in UAE?
It is always recommended to diversify your portfolio to achieve the best results. A well-diversified portfolio is essential for mitigating risks associated with investing in a single sector or company. It allows you to spread your investments in UAE across different assets such as stocks listed on Dubai Financial Market, bonds issued by UAE government entities, and equity funds focusing on specific sectors or regions within the Middle East region among others.
According to experts, one of the best monthly investment plans in UAE should include:
- Stocks: Invest money in companies listed on stock exchanges such as the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM), or via iShares MSCI UAE ETF, one of the best investment options in UAE for expats.
- Bonds: Purchase fixed-income securities issued by governments or financial institutions that offer regular interest payments along with principal repayment at maturity.
- Mutual Funds: Opt for professionally managed investment funds that pool money from numerous investors to invest in a diversified portfolio of stocks, bonds, or other securities.
- Real Estate: Consider investing in the UAE’s booming real estate market through direct property ownership or Real Estate Investment Trusts (REITs).
In addition to these traditional asset classes, consider exploring alternative investments such as structured notes, which offer customized risk-return profiles tailored to your specific investment goals.
How to choose the best investment in UAE?
Below are a few tips you can consider before considering the best investments in UAE:
- Assess your goals, whether you want to invest for the long-term or for the short-term.
- Analyse factors like how much risk you can take and the tentative time duration of the investment.
- Do your research properly, in order to find the most suitable investment tools that will help you achieve your goals.
- Compare the best investment options in UAE based on factors like risk appetite, returns, cost, time duration and much more.
- Try to avoid high investment options that have high risks.
For those serious about diversifying their investment portfolio, remember that any investment initiative requires a robust investment strategy and thorough research of overall investment risks.
Ready to start investing in UAE?
Investing money in the UAE can be a smart move for both residents and ex-pats, with low-cost ETFs and tailored financial products from local banks offering a broad market and minimal risk exposure.
It’s important to do your due diligence when considering international investments, but Dubai’s ambitious economic plan and ongoing reforms make it an attractive destination for foreign investors.
For the best investments in the UAE, consider exploring these options to find what works best for your financial goals.
Why the UAE ETF
The iShares MSCI UAE ETF seeks to track the investment results of an index composed of leading UAE equities.
- Exposure to a broad range of companies in the United Arab Emirates (UAE)
- Targeted access to UAE stocks
- Use to express a single country view
Free Resources
Before you decide what is the best investment in UAE for your needs, consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of trading and investing courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to make more-informed investment decisions.
Our integrated third-party tools can help you choose the best investment in UAE for your needs.
Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
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