Recent reports show that the UAE’s economic freedom score is at 70.2, making it the 33rd freest in the 2022 Index. It also ranked first among the countries in the Middle East and North Africa (MENA) region, with its overall score being above the regional and world average. Because of this, the country has been considered as one of the best places in the world to make an investment in, given its favorable tax environment and technological expertise.
If you are looking to grow your assets in the UAE, read along and see what investments you can make in the country.
Investment Options in the UAE
There are three stock exchange centers in the UAE: Dubai Financial Market, NASQAD Dubai, and Abu Dhabi Securities Exchange. These stock exchanges have over 200 publicly listed companies, even allowing more international corporations to register and make their stocks available to everyone.
This works when companies split their shares and trade them, so that when a person purchases a stock, he or she becomes an owner of a portion of a company. To generate income from this, there are two options.
First is stock price appreciation, which allows people to multiply their investments, sell them, and earn a profit which becomes a capital gain — a type of income not taxed in the UAE. Another is through dividends — a person’s share in the retained earnings that a company pays out.
A bond is a loan with a fixed term, set to be given to a company in exchange for regular payments of interest. In the UAE, The National Bonds Organization, regulates bond purchases in the country, allowing both residents and non-residents to avail of national bonds if they are 21 years of age or older.
Moreover, to adopt a solid and comprehensive approach to economic and social development, the UAE Ministry of Finance even issued a US dollar denominated multi-tranche bond offering. This is open for subscription, and comprises several packages, such as medium and long-term tranches in 10 and 20 years, in addition to a 40-year dual-listed Formosa tranches. These sovereign bonds will be issued in accordance with Rule 144A of the Securities Act of the US, and are expected to witness great demands due to the country’s high credit standing in the global markets.
- Real Estate Investment Trust (REITs)
REITs are stocks from companies who purchase real estate or provide mortgage facilities to investors. They are traded like stocks, but unlike physical real estate property, they are highly liquid because investors can hold the shares of companies who are investing in the market.
Consequently, it is ideal to invest in REITs in the UAE since the country has the fourth highest annual dividend yield on REITs globally, surpassing US, UK, Germany, Singapore, and Australia. Investing in this would be great for those who are looking to generate profits from real property without the risk of owning one.
Make a Secure Investment
Make a secure investment in the robust economy of UAE through a reliable investment group who is known to house the best financial advisors. Reach out to AIX Investment, one of the top investment companies in the UAE for more information.