The Central Bank of the UAE expects robust GDP growth in 2021, as the government is continuing its efforts to diversify the economy, boost spending on infrastructure and encourage private investment, as a gauge for growth and private sector employment. The UAE government has received Aa2 rating in creditworthiness with a stable outlook for the national economy by the international rating agency, Moody’s. This is another testament to the success of the country’s financial and economic vision and policies, and the strength and stability of its economic, financial, and credit sectors.

Dubai recorded exceptional inflows of foreign direct investment (FDI) in 2020 with 455 projects worth AED24.7 billion, according to data from the Dubai FDI Monitor released by the Dubai Investment Development Agency. An estimated 18,325 new jobs created by inbound FDI in 2020, according to the Dubai FDI Monitor, which uses the Organisation for Economic Cooperation and Development’s methodology to track FDI data.

This performance places Dubai among the top global FDI locations in 2020, ranking first in the Middle East and North Africa region and fourth globally in attracting greenfield FDI capital, according to the Financial Times’ fDi Markets, the leading global source of data on greenfield FDI.

In the post-Covid scenario, it has become imperative for consumers per se to be extremely careful in whetting the various investment plans. Dubai continues to offer attractive investment opportunities for both, high net worth and small investors.

1. Real Estate: One of the driving investment opportunities continues to be real estate. These days there is a big demand for residential villas since people have an aspiration to have access to open spaces with a garden. Cooped up in apartments has been claustrophobic for most. There is also an upsurge in demand for plots where people can construct according to their specific requirements. Several banks who have repossessed real estate from mortgage defaulters are also offering attractive deals.

 

2. Online Trading: Another option available to investors is to do Forex trading online. While this requires some knowledge of the stock market, there are options where one can count on the financial investing experience of professional entities with a good track record. It is also important to deal with organisations that are regulated by the FCA in the UK and trusted by traders worldwide.

 

3. Bitcoin Trading: Elon Musk has put bitcoin, front, and centre by investing an obscene amount in bitcoin. Bitcoin uses peer-to-peer technology to operate with no central authority or banks, which seemingly is an attractive option with no questions asked. There are however still several countries that do not officially approve trading in bitcoin. If you are looking to learn more about investing in bitcoin, this guide by Sarwa will prove useful.’

 

4. Existing Businesses: There are several businesses that have gone bust because of the pandemic. These are mainly in the F&B and events management industry. Investors are also prepared to invest in these companies and when life returns to normal, they see an uptick in valuation. When normally will return is anyone’s guess!

 

5. Saving Plans: A large number of investors prefer ‘safety first’ approach to investing. These prefer to sign up for parking a comfortable amount every month and see their savings grow over time. While this is a safe option, the growth in investment can be extremely slow.

 

Dubai has gone through several ups and downs in the last decade because of global economic meltdowns. However, post a crisis Dubai is always one of the first cities to rebound. UAE is likely to be one of the first countries to acquire herd immunity from Covid (Within the next 60 days) and then there is hope that life will return to pre-Covid levels.

Let us hope Dubai achieves this objective through the wise and able leadership of the Emirate.