How to invest money in the UAE (for expats & Emiratis)
The best financial decisions are born from knowledge.
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After you've sorted your budget, built an emergency fund, and tackled your debts, you'll be in a prime position to explore investing as a powerful way to grow your wealth over the long term.
Investing isn't just for the ultra-wealthy or financial gurus. Today, with more accessible information and user-friendly tools, anyone can learn how to invest.
Why invest?
In a dynamic economy like the UAE, simply keeping your savings in a traditional bank account won't cut it. Inflation can quietly erode your purchasing power, and the interest rates on standard savings accounts often remain minimal.
Globally, inflation has averaged around 2% annually since 1999, which is the target for many central banks, including the European Central Bank.
Based on the UAE consumer price inflation, 100 AED in 2000 was only worth only 50 AED in 2024. This means a continuous, subtle loss of purchasing power over time, as you can see from the image below:
The great news is that in the UAE, you have numerous avenues to make your money work for you, even if you start with small amounts.
Where to invest?
The UAE gives residents a rare mix of zero personal-tax, deep capital markets and easy access to both regional and global products.
Below you’ll find a plain-English walk-through of the main routes you can take - ordered from the most established to the most speculative - plus the numbers that matter right now.
1. Real estate
Dubai’s property market is back in the global spotlight. According to statistics, apartment prices rose 15.8% in the year to Q1 2025, while average gross rental yields sit at 7.3% for flats and 5% for villas, well above London, Singapore or New York.
The entry ticket is around AED 150–200k for an off-plan studio or AED 5000 if you use a local real-estate investment trust (REIT).
Why real estate: population growth (+50000 people in Q1 2025 alone) keeps demand high. Plus, a property ≥ AED 2m can unlock a 10-year Golden Visa.
On the downside, there is generally a 4% transfer fee, ~2% broker commission and a typical 20–25% cash down-payment.
2. Global shares & ETFs
If you want broad, low-cost diversification, an MSCI-World-tracking ETF is still the benchmark: the index has delivered +8% annualized over the last 20 years. Another option is the popular S&P 500 index. Use our ETF calculator and do your own simulations!
How to buy:
- Open an SCA- or DFSA-regulated broker (e.g. Sarwa Trade, IBKR, eToro). Check our list of regulated brokers in the UAE.
- Search for tickers like EUNL (iShares Core MSCI World).
- Start with fractional purchases from USD 5 if you wish.
Want a step-by-step guide? Check our article on how to invest in the S&P 500 from the UAE.
3. UAE stock market (local exposure)
The Emirates’ two main exchanges - Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) - let you tap into the region’s publicly listed companies: banks, property developers and telecom giants.
You can invest in local companies or UAE ETFs like the iShares MSCI UAE ETF (ticker UAE). It holds ~50 large-cap UAE stocks.
The average annual total return since 2014 launch was just 1.44% (well below global equity benchmarks):
Adding UAE shares can boost your portfolio’s dividend income and give you a home-market edge, but the ETF’s modest long-term record underscores the need for broader global diversification.
Want to learn more? Check this dedicated video covering how to invest in the UAE stock market:
4. Mutual funds & robo-advisors
Platforms such as Sarwa, StashAway and Wahed build portfolios of global ETFs and sukuk in the background.
A balanced (60/40) profile on these services returned 5-8 % per year net of fees over the past five years, according to their client-reports.
Most of these brokers carry SCA or DFSA licences and let you automate from AED 500/month.
5. Gold: Dubai, the “City of Gold”
From 1978 to February 2025, gold produced an average annual return of about 5.93%.
However, that figure was just over half the annual return of global equities during the same period.
If you want to invest in gold, you can choose between:
- Physical coins/bars from the Gold Souk or DMCC-certified dealers.
- A “Gold Account” at major banks (fully allocated).
- ETFs such as SPDR GLD (conventional) or GLDM (Sharia-compliant).
6. Bonds & savings accounts: steady income
UAE Islamic Treasury Sukuk offer lower volatility, with the February 2025 3-year tranche clearing at 4.18% YTM(minimum bid AED 1000 through Emirates NBD, ADIB, etc.).
Prefer to stay in cash? Check our roundup of the best high-yield savings accounts in the UAE.
7. Cryptocurrencies
Bitcoin’s ≈100 % compound annual growth (2015-25) dwarfs every mainstream asset - but remember the two 80%+ crashes in that period.
If you dip a toe, use a VARA-licensed exchange (Binance FZE, Coinbase MENA) and cap the exposure to money you can lose.
Building your UAE portfolio in five moves
- Define your goal and timeline. A house deposit in three years requires a different mix from retirement in thirty.
- Pick the right wrappers. Offshore brokers help with global ETFs; local banks are easier for sukuk and IPO subscriptions.
- Automate. A standing order of even AED 1 000/month into your chosen ETF or robo account forces discipline.
- Diversify across at least three buckets. Example starter split: 60 % global equity ETF, 25 % sukuk, 15 % gold.
- Review once a year. Rebalance, update beneficiaries and adjust risk as your life changes.
Final thoughts
Money parked in cash loses purchasing power every year. By coupling the UAE’s tax perks with disciplined, diversified investing, you give your dirhams a chance to out-run inflation and build real wealth.
Start small, stay consistent, and remember that time in the market beats timing the market.
Want to learn more? Check our articles & tools:
Disclaimer: This information does not constitute financial advice or a recommendation and should not be interpreted as such. The author of this article is not a financial advisor and is therefore not authorized to provide financial advice.
