5 guaranteed investments in the UAE
People differ when it comes to risk appetite, there are those who do not have a problem with taking high risks, while others are satisfied with lower returns as long as they do not expose their capital to higher risks. We need to acknowledge that no investment is completely risk-free and safe, even if you invest your money in the largest and most financially solid bank in the world, there is still little chance of that bank going into financial trouble, which can make the task of getting your money back difficult. very. Investments have different levels of risk, so you should be careful in choosing the investment that best suits you. If you are looking for a safe and secure investment in the UAE, then read this article.
Safe and secure investments in the UAE
1- UAE National Bonds
First, in the article on safe and secure investment in the Emirates, the UAE National Bonds, which is considered one of the safest investment options in the Emirates, as the company is wholly owned by the Dubai government, and it also enjoys multiple safe investment options, and it has achieved good returns over the past years. You can buy National Bonds with as little as 100 AED.
2- Government and international corporate bonds
Secondly, in the article on safe and secure investment in the Emirates, government bonds and international companies. Similar to the UAE National Sukuk, US and international governments and corporations issue bonds on a regular basis when they need financing. Here are some standard features of bonds:
Maturity date: Each bond has a specific redemption date promised by the government or the issuing company.
Coupons: Coupons are the interest the bondholder gets monthly, quarterly, or annually, depending on the type of bond.
Investors can take advantage of the bond by either waiting to maturity and obtaining coupons or selling the bond on the secondary market before maturity if bond prices rise.
People living in the UAE can access US and international bonds through financial advisors or by opening a brokerage account with one of the brokers that provide access to international bonds such as Saxo Bank or Swissquote.
3- Fixed deposits in UAE banks
Thirdly, in the article on safe and secure investment in the UAE, fixed deposits in UAE banks. UAE banks pay interest for keeping your money in the account without withdrawing it for a certain period of time. Unfortunately, interest rates have been low for two years in the UAE and the world, so you cannot expect to get more than 1% on your fixed deposit in most banks.
Fixed deposits are among the safest investments in the UAE. The only risk they have is that the bank will go bankrupt, which is unlikely to happen.
Contact your bank to check the fixed deposit rates they offer or look for websites that provide interest rate comparison for UAE banks.
4- Savings accounts with high returns in UAE banks
Fourth, in the article on safe and secure investment in the UAE, savings accounts with high returns. Savings accounts in UAE banks and abroad offer a modest return on your money, but nevertheless, it is a better option compared to leaving your money without interest in current accounts.
For the best interest rates, always look out for digital banks. This type of bank manages most of its operations using artificial intelligence and chatbots, which makes its operating cost low. Love Bank is a digital bank owned by Emirates NBD that pays an interest rate of 1.5% per annum for a savings account, which is very high compared to other banks in the UAE and even globally.
All you have to do is contact your bank to check the savings account rates they offer or look for websites that offer UAE banks interest rate comparison.
5- Investment Funds
Mutual funds are pools of short-term bonds, certificates of deposit and other low-risk investments bundled into one fund to create diversification and reduce potential risks. Mutual funds are usually sold by brokerage firms and mutual fund companies.
You can access money market investment funds from the United Arab Emirates through financial advisors who have a wide range of funds that suit each investor’s goals and risk profile.
There are many safe and secure investment options in the UAE, each with its own risks and returns. Remember to think carefully before choosing an investment that you think will give you the return that satisfies you with an acceptable level of risk.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as investment advice or a recommendation. No warranty is made, express or implied, as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.