In order to maximize the potential of your hard-earned money, it is important to consider all forms of investment in Dubai. This means you would be looking for options that put your money at work which depends on whether or not you take the risk. Therefore, let’s take a look at various investment alternatives in terms of return potential

Invest in the savings account- 1% return pa (one of the safest option)

If capital protection is your priority and not taking any losses (as you need your money back within 18 months or less), then you need to put your focus on your bank term deposit account or savings account. However, 1.0 percent per annum is considerable, even if you are just focussing on capital protection.

Invest in National Bonds- 2-3% return pa

Are you focussing on  2-3% per annum returns? Then you should go for the UAE National Bonds. On average, the bondholders usually earn 2.89 percent. You can buy national bonds at the Bankonus website online or at Emirates Post Offices or local banks directly.

Invest in government/ corporate bonds – 4-6% return pa

If you are looking for a 4 to 6% per annum return, look for buying government bonds or investment grade corporate bonds. The yield on the bond is based on whether you buy the bond above, at or below the par value and the return (interest payment either as a yield to maturity or a normal coupon rate). Bonds are best purchased through an experienced broker who is invested in helping you think through your criterion and help you secure the right bonds.

Always be assured of doing due diligence on the broker.

Invest in corporate bonds, stocks, stock indices – 6-9% return pa

If you are aiming returns from 6-9% per annum, you should be willing to buy high-yield corporate bonds, stock indices(via index funds or exchange traded funds) or stocks in developed markets such as US, Europe and Australia etc. You can also find your inexpensive bonds on Bankonus website.

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Invest in emerging stocks- Higher – 10% pa return or more

Investors who have a high-risk appetite in pursuit of getting higher returns should be willing to buy stocks in developed small or micro cap, frontier or emerging market stocks. If you buy these stocks as an asset class through exchange traded funds, you might get an average of 10-14% per annum. And the return on individual stocks you may be buying could be 20% per annum or more.

Invest even higher -angel investment

If you have an entrepreneurial spirit but have obligations in life that prohibit you from starting your own business, one of the methods for obtaining a very high return is investing in a start-up. It is always a perfect idea to do constructive due diligence on any of the start-ups you prefer investing in.

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