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Best way to invest in UAE

١٤ مارس Best way to invest in UAE

The UAE is considered one of the best places where people can invest their money, but to invest there, certain conditions must be met. We must follow these conditions, considering it one of the best and most important places for investment.

Investment in the Emirates through residency: –

Real estate investment may be considered one of the best investment steps in the Emirates, therefore it is subject to several rules and conditions that are determined and regulated by the Dubai Real Estate Law issued in 2009, which are as follows:

  • The property value shall not be less than 1,000,000 AED.
  • The property must be fully constructed.
  • The investor must have a fixed monthly income of no less than AED 10,000.
  • Obtaining a work visa by submitting an application to the competent authority after paying the fees required to obtain the visa and paying the full price of the property to the property owner.
  • Ensure that the investor is in good health and conduct the required medical examinations, as he must be in good health who wants to invest and reside in the Emirates and that he does not suffer from any contagious disease for other people, and that he passes the medical examinations designated for him, knowing that the medical examination will be repeated again when renewing the residence.
  • The person who wants to reside and invest in the Emirates submits an application to the General Directorate of Residency and Foreigners Affairs, attaching with the application a personal photo and a copy of his passport, and the original contract of ownership of his property, but on the condition that it is in his name only, and that he pays the visa fees. After completing these procedures, he will be granted residency in the Emirates for a period of two years, renewable if there are no obstacles to residency and investment in the Emirates .

The best way to invest money in the Emirates:-

The UAE is considered one of the best and most important places for investment in the Arab world, and this is due to the fact that the UAE market provides great potential for investment. The methods of investment in the UAE vary and diversify in order to achieve a high return on investment, but choosing a successful investment for you and the UAE market to achieve this return is not an easy matter. Here are the three best ways to invest money in the UAE:

Mutual Fund and ETF:

First: Mutual investment fund:

One of the most important ways to invest money in the Emirates is investing in a mutual fund. This is because the fund provides those who do not want to participate in the investment and can comfortably enter the diverse market without feeling any pressure. All you will do is invest in a tool that includes several investments within it and is headed or managed by a manager (fund manager) who is highly professional in the field of investment. Therefore, it is considered one of the best ways to invest money in the Emirates, especially for small investors or beginners in new investments, unlike investing in the stock market.

You can also invest in a mutual fund by investing the smallest amounts with the possibility of choosing the sector in which you would like to invest. Once you subscribe to this mutual fund, it does not concern you or interest you in what happens regarding the daily market movement. All of these services are provided by the fund manager who is responsible for all of these matters related to it.

Second: Exchange Traded Fund:

As for the exchange-traded fund, it is an open-ended investment fund listed on the stock exchange, and we have recently become familiar with it because it is also low-cost and easy to trade, and it also depends, like mutual funds, on small amounts and small investors.

Real estate investment:

The increase in the percentage of new buildings and facilities has led to a major boom in the UAE, which has had a positive impact on real estate investments there due to the guaranteed and quick profits they achieve.

Some places in the Emirates, such as investing in the Jebel Ali area or investing in the free zone or the Emirate of Ras Al Khaimah, which is now turning into a great tourist destination, and also the Dubai Silicon Oasis area, which was a buried place with no value in the middle of the desert, but now it has become a thriving residential and commercial community, and all of this is due to the presence of amazing real estate investment.

We are also talking about the idea of ​​investing in the Emirates regarding the expatriate workers there. We find that it is better for them, instead of renting a house to live in and paying a monthly rent, to buy those houses so that they have a place, property or investment asset in the Emirates whose value increases with the passage of time.

Cryptocurrencies:

Despite the problems of investing in paper currencies and the resulting risks in investing due to the lack of regulation of the market, anyone who wants to invest in this type must take precautions. However, investing in paper currencies greatly simulates the rapid growth boom in the Emirates and was able to break all expectations and achieve amazing profits during that period. The idea of ​​loss did not remain present as before.

Investment determinants:-

Although investment has many beneficial returns, there are some limitations that stand in the way of its development, namely:

  • Passion for investing without studying.
  • Your exposure to investment possibilities.
  • The political, social, economic and security conditions surrounding the facility.
  • The nature and quality of economic policies in the investment zone.
  • Disproportionality and instability of interest rates.
  • Sometimes lack of stability.

Investment areas:-

Investment areas vary according to the sector that each of us uses, and these areas include:

  • Real estate investments: These include real estate, buildings and residential facilities.
  • Tourism investments: These are represented in the field of tourism, whether recreational or economic.
  • Industrial investments: These are represented by investing in factories and production projects.
  • Agricultural investments: This represents investment in agriculture in all its stages, starting with planting the seed and ending with the final stage, which is selling the crop.
  • Local and foreign investment, classified according to the source of capital.

 Factors encouraging investment:-

Although investment has now witnessed a huge and significant leap in progress, it also has several means of encouraging it in the UAE, namely:

  • The appropriate economic policy in the country to encourage investment and prevent any unwanted or unusual economic fluctuations.
  • There must be a strong infrastructure in the country for investment.
  • A good administrative structure must be available to provide an element of harmony and coherence between laws and legal regulations.

Costs of establishing a company in the Emirates:-

The costs of establishing a company in the Emirates are mainly  limited to several expenses, which are as follows:

  • Costs of obtaining a commercial license (license to practice business)
  • The costs of purchasing an office location or the cost of the company through which you conduct your business, whether renting or purchasing.
  • The costs of purchasing furniture and decorations for the office in which you operate your business.
  • Costs of obtaining work permits for sponsored employees and their visas required under your company name.
  • Costs of opening a new account in the company’s name in a bank and depositing the minimum capital.
  • The legal form of the company plays a role in increasing or decreasing the initial cost of establishing the company. The costs of establishing an industrial company are higher than the costs of establishing a commercial and professional company.
  • Costs of obtaining and extracting a commercial license.