UAE’s attractiveness to investors is accelerated by its political and economic stability, excellent infrastructure, and developed capital markets. Known to provide a high level of security, reliability, and quality of life for all its citizens and residents, the country provides a fertile environment and ample opportunities for financial growth. With attractive investment prospects across industries, the investor portfolio suggests that a majority of young investors seek advantage due to the availability of digital platforms. Noteworthy factors like high return on investments, less risk, investment opportunities for a secured future, and diversity of ETFs are rated high on UAE’s advantages as a global investment hub.

Complimenting the UAE’s status as one of the world’s most attractive investment hubs, Ali Hasan (CEO, Evest) feels that “The investment attractiveness of the UAE and Dubai, in particular, has witnessed a steady rise over the years. It’s on a constant quest to promote its investment environment to offer greater incentives to investors. It undoubtedly provides irreplaceable investment opportunities, especially in the field of financial markets, which is one of the strongest and most profitable areas of business. Considering that Dubai’s population which is at more than 3.3 million people currently, and is targeted to reach 5.8 million people by 2040; reflects on the tremendous efforts for socio-economic development and financial stability.”

A diversified and competitive economy with a strategic location and state-of-art infrastructure is also governed by effective development planning. Owing to such favorable factors of an adaptable economy, the region offers unique investment features like:

1- High returns: For expatriates in the Gulf region and the Middle East, investing options in the Dubai Financial Market are the most preferred as they provide the highest returns on a global index.  Expat investments in the financial markets are on a constant rise across short-term and long-term investment portfolios.

Ali Hassan points out that investors are often afraid of weak returns due to trading fees, falling stocks, or declining market performance. But the Dubai Financial Market showed a remarkable recovery in Q! 2022, and it is clear that this recovery will continue during the coming years in light of the factors supportive of the market.

2- Less risk: The United Arab Emirates has provided the best legislative experiences in the world in sponsoring foreign investments, providing legal protection, and preserving the rights of investors without violating their ownership.  Residents or investors can manage their ownership of shares, whether selling or buying remotely thanks to modern upgrades in technologies.

3- Safe environment for long-term investments: When investing in the UAE, market volatility is less of a worry. The financial market landscape provides credible stability and law adhering protocols to allow investors to feel safe about a long-term investment commitment.

4- Diversity of ETFs: Yet another encouraging factor for investing in the Dubai market lies in the diversity of ETFs. Considering the attractiveness of the market and the price movements that tend to rise, it always guarantees the matured investors a high return on investments along with benefits for the new investors in terms of price improvement of shares.

Apart from these major factors, the UAE also provides good infrastructure and legislation that respects the rights of all, opportunities for investment and trade growth, as well as continuous and renewable government initiatives that support the economy to encourage the influx and residence of expatriates in the country. The UAE has joined the top 20 countries considered trustworthy ranking 15th in Kearney’s 2021 Foreign Direct Investment Confidence Index. Business environment laws have also resulted in boosting investor appetite in the UAE and making it one of the destinations of choice for international investors.