“Should I invest in real estate or precious metals?” This is one of the questions investors in UAE are asking.
The United Arab Emirates has commanded much attention for some years now. The country has become a hub for investments with incredible return on investment potential.
Investing in the UAE has become a rather wise business decision. The question of where to invest still comes up anyway.
In this article, you’ll learn what choice is best for you between Real Estate and Precious Metals when you seek to invest in the UAE.
Why Should I Invest In Dubai?
The United Arab Emirates is a very attractive country for foreign investments. It boasts of an enabling environment and burgeoning economy that supports business growth.
Statistics from usnews.com places the UAE in number 7 on the list of the best countries to invest in.
Investing in the UAE has numerous benefits. Among them are;
Robust infrastructure
Investments have been made in various sectors in the United Arab Emirates that have bolstered the economy.
Impressive infrastructure. such as green energy, power, and telecommunications are readily available.
The UAE possesses an exceptionally sophisticated and networked land, sea, and air transport system. It boasts of an incredibly fast internet service which places it at the top globally for mobile network speed.
Stability and security
The UAE boasts of impressive economic strength and stability. This is because of a robust legal and security system, substantial sovereign wealth funds, and significant financial reserves.
The UAE does not have many crime incidences, making it one of the safest countries in the world.
Innovation
The UAE has access to a wealth of resources which cuts across information, skills, technology, and funding.
Businesses in sectors like commerce, manufacturing, media, aviation, healthcare, and agriculture, can leverage the UAE’s ecosystem for various activities.
The nation has emerged as an innovation hub in various fields, such as stem cell therapy, vertical farming (enabling pesticide-free, year-round harvests), and advanced materials for use in aviation, green energy, vaccinations, and transportation.
Strategic location
The UAE is beautifully positioned between Europe, Africa, and Asia making it a lucrative business location for international trade.
It is one of the best places to invesr]t because of its geographic location. It serves as a launchpad for businesses looking to access these regions. Investors from Russia, Ukraine, Palestine, and Israel seeking to expand their reach get attracted to the UAE
Tax incentives
The UAE offers numerous tax benefits to foreign investors, with various free zones providing tax exemptions and incentives. This advantageous tax regime can significantly reduce the financial burden on investors, making it a cost-effective choice for those from Russia, Ukraine, Palestine, and Israel.
Bilateral Trade Agreements
The UAE has established numerous bilateral trade agreements and partnerships with countries around the world. These agreements can simplify trade and investment for investors from Russia, Ukraine, Palestine, and Israel, enhancing market access and reducing trade barriers.
These benefits listed above provides an almost fail-proof system for investments. Investors can rest assured that their return on investment (ROI) won’t be threatened.
The question now is, what investment is better; precious metal or real estate? Let’s find out from this article.
Real Estate Investment
Real estate investment is one of the oldest forms of investment. Man has always sought to own and control this industry that provides shelter and heritage. Till date, the desire has continued to grow.
In the United Arab Emirates particularly, the interest keeps rising. The enabling environment and booming economy of the United Arab Emirates makes it juicy to invest in Real Estate.
How Can I Invest in Real Estate in UAE?
You can invest in Real Estate in the United Arab Emirates in the following ways:
1. Buy a single-family home
investing in single-family homes is the easiest way to begin, especially when you have little experience in real estate.Â
Single-family homes have high rental demands since they are affordable and offer ease of property. Above all, it is considered a low risk investment.
2. Purchase an off-plan property
Off-plan properties in the UAE are attracting lots of investors due to their reasonable prices.
Off-plan properties offer investors the prospect of having properties that increase in value on completion and handover.Â
Getting an off-plan property has its risk and at the same time, numerous advantages. The chances of making good money from this investment is reinforced by all the signs of healthy growth that the real estate sector in the UAE is currently witnessing.
3. REIT investment
‘Real Estate Investment Trust’ also called REIT is a financial vehicle that allows individuals to invest in real estate assets without directly owning the properties.
Stock in companies that invest in real estate by acquiring and managing multiple properties such as apartments, hotels and commercial properties are involved in REIT.
You can choose to invest in Equity REITs or Mortgage REITs. You are guaranteed a stable source of income because REITs tend to remain steady and produce a higher yield than other equities.Â
4. Investment property calculator
We highly recommend that every future real estate investor buys this tool before purchasing any property.Â
It saves time and money. It also helps you to be more informed about the potential of properties you would like to invest in.
The investment property calculator enables you to estimate the income profitability of a property by using input data like property listing price, mortgage payments, cash flow, cash on cash return, expenses, etc. these are based on predictive analytics.
Undoubtedly, the real estate market offers a lot to investors. Now, lets look at the precious metals market just like we did to real estate above.
Also Read: Step-by-Step Guide on How to Build Wealth Using Mutual Funds as a Young Person
Precious Metals Investment In The UAE
The growth in the precious metal industry is massive. This is necessitated by factors like economic recovery, increasing global investment in safe-haven assets, and the region’s reputation as a hub for gold and other precious metals.
Investment in precious metals lead to diversification of portfolio and protection at the time of economic crisis.
Precious metals are tangible assets. However, investing in top precious metals is not as simple and straightforward as a other investments like the stock market.
What Are the Best Precious Metals to Invest in?
Precious metals are beyond just silver and gold. There are different precious metals in the UAE you can invest in. this article will highlight some of them.
1. Gold
Gold is one of the most precious of metals. It is highly valued and attracts loads of interests among investors.
In UAE, gold is one of the most famous precious metals for investors just like real estate. It has held monetary as well as emotional value for many years.Â
Gold was used in times past as legal tender, it is capable of holding its worth even during a situation of a major economic downfall. Now you see why it attracts the most attention.
It’s malleability is another selling point. This precious metal can be beaten into various forms. An investment in gold is safe, it has low volatility and can hold its own for a long period of time.
Though it is expensive, especially for new investors, yet, gold is amongst the best investment.
Investors in this precious metal see it as a great and safe investment.
2. Silver
Silver is another famous and sought after precious metal. Its worth is less than gold’s making it a simpler alternative for investment for new or inexperienced investors.Â
Silver is used more widely in the industrial sector. Sectors like Medicine, technology, and solar energy all make use of silver in the manufacturing of their products.
3. Palladium
Palladium is from the family of platinum group metals, it is used in the making of many electronics. The automotive sector makes use of palladium in the manufacturing of various components.
The price of palladium according to commodity.com is currently at $959. This precious metal became one of the most priced metals in the market in 2019 and may yet hit that mark again.
4. Platinum
This is one of the rarest and most expensive precious metals. Platinum is famous for jewelry as well as catalytic converters that are found in vehicles.
People use platinum as much as gold and silver. This is why it attracts a little less investment than the aforementioned.
5. Copper
Copper is mostly considered a base metal but its value is undeniable. It is popular amongst the manufacturing and construction sectors.
This is not an exhaustive list of all the precious metals available in Dubai, it is only a mention of some of the best for investment.
Also Read: 7 Investment Mistakes You Must Avoid in Dubai
Real Estate Vs Precious Metals: Where Do I Invest My Money in UAE?
This question has no right or wrong answer, it depends on choice of investment. The proper thing to do is to ensure satisfactory knowledge of the sector you wish to invest in.
It is advisable also to consider current economic trends. Both can come in handy in short and long term investments. The best thing at this point is to have a diversified investment portfolio if you’re able to.
