Best Investment in UAE 2025 - Low Risk High Return

What is Investment in UAE?

Investment is an asset that is designed to help you generate wealth. The process of investment includes using your current funds to increase an asset or security’s income over time. The top investments in Dubai and UAE include stocks, real estate, bonds, and more.

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Table of Content

What is Investment in UAE?
Key Objectives of Investments:
Who Should Invest in Investment Plan in UAE?
How Do You Select the Best Investment in the UAE?
Is It a Good Idea to Invest Money in UAE?
How is Investment Different from Saving?
Understanding the Investment Climate of UAE
What are the Types of Investment Plans in UAE?
How to Calculate Investment Return in UAE?
What are the Documents Required to Apply for Investment Plans in UAE?
Why Buy Investment Plans from Policybazaar UAE?
Frequently Asked Questions
Guide to Investment Plans in UAE

Key Objectives of Investments:

You can diversify your investments to reduce risk. When you invest, you work to meet the following objectives —

To Keep Money Safe — Capital preservation is a key goal for many investors. Some investments, like fixed deposits, government bonds, and savings accounts, protect your money from erosion over time. Though these options may offer lower returns, they ensure your savings remain intact.
To Help Money Grow — Another common objective is to grow your money into a substantial amount over time. Capital appreciation, usually a long-term goal, secures your financial future. Investments like real estate, mutual funds, commodities, and equity can offer significant returns. While these options may carry higher risks, they also promise substantial growth.
To Earn a Steady Stream of Income — Investment in Dubai and UAE can also ensure a regular income. Examples include fixed deposits with regular interest payouts or dividend-paying stocks.

These income-generating investments can support your everyday expenses post-retirement or serve as supplementary income during your working years. This can help you with costs like college fees or EMIs.

Who Should Invest in Investment Plan in UAE?

Whether you’re a resident or an expatriate, you can easily invest your funds in UAE in a range of investment products. While there is no minimum age requirement for investment in Dubai and UAE, you can consider investing for your financial goals as early as possible.

Here’s a general age group categorisation of when people usually invest in UAE —

Early 20s — To inculcate the habit of saving and investment to create wealth in the future
Late 20s — To plan for a business or an early retirement planning
30s — To plan for your children’s higher education and future requirements
40s to 50s — To plan for the family’s future in case of the policyholder’s unfortunate demise or for nearing retirement age.

Note: If you earn less than AED 6,000 per month, you should consider investing in the UAE to generate a second source of income.

How Do You Select the Best Investment in the UAE?

When choosing an investment plan in the UAE, consider more than just your investment portfolio. Keep these factors in mind to make the best decision —

Value of the Option - Assess the current value of the investment plan. For unit-linked plans, choose from the options provided by the insurance company. For equity or other investments, check their current valuation before deciding.
Your Savings - Determine how much of your savings you can invest. It's crucial not to invest all your savings at once. Keep some as liquid funds for emergencies and invest the rest.
Your Current Financial Position - Evaluate your financial situation.

Can you afford to take risks? Do you need a safer plan?

Consider your responsibilities, like saving for children or paying off loans.

Reasons to Invest - Clearly define your investment goals. For retirement, opt for long-term investment plans. For short-term goals like your child's education, it’s better to choose short-term plans.
Risk Level of the Option - Assess the risk associated with the investment. If you can't afford to lose your money, consider safer options like fixed deposits.
Plausible Returns - Calculate the returns needed to meet your financial goals and find a plan that matches these requirements. Building capital is the main objective of investing.

Is It a Good Idea to Invest Money in UAE?

Investing money in the top investment plans in UAE is always a good idea.

When you put your funds in a good investment in UAE, you gain high returns on investment and achieve your financial goals.

The benefits of investment in UAE, however, are much more than this! Find out more about the key advantages of investments in Dubai and UAE —

Wealth Creation

Investing in a business asset or venture can significantly increase your wealth. UAE investment options can turn small investments into substantial profits, although the actual returns will depend on your risk tolerance.

Beating Inflation

Relying solely on savings might not be sufficient in the long term due to inflation. By investing, you can stay ahead of inflation and grow your money. This way, you can ensure a comfortable future for yourself.

Financial Protection

Investments, whether safe or risky, protect your financial interests. Even safe options like fixed deposits can bring decent returns, contributing to a secure financial future.

Stress-free Retirement

Wise investments in UAE can build your retirement corpus more effectively. This allows for a comfortable and stress-free retirement, even if you aim to retire early.

Safe Financial Growth

UAE investment plans offer decent profits while safeguarding your money from significant losses. This ensures safe financial growth.

Meeting Financial Goals

Ultimately, investments help you achieve your financial goals — from funding children's education to supporting your family. UAE investment plans are designed to meet these goals effectively.

How is Investment Different from Saving?

If you are new to the world of savings and investment in UAE, it’s essential to understand the difference between the two.

Basis	Investment	Saving
Tenure	For long-term financial goals	For short-term financial objectives
Liquidity	Less liquid than the savings	You can access the funds whenever required
Risk Profile	Since the plans are often market-linked, there is a higher degree of risk	Minimum risk
Returns	Usually higher return on investments	Fixed interest on savings, which is usually on the lower side

Understanding the Investment Climate of UAE

The UAE has a positive investment climate and is one of the easiest places to do business globally. Getting a licence to set up a local or international business is quick and straightforward, with some structures allowing 100% foreign ownership.

Non-residents and expatriates can trade on the UAE Stock Exchange with minimum documents, while several foreign investors can benefit from the real estate sector. Private pension schemes, mutual funds, and other asset classes are also popular investment options.

The UAE's economic, financial, and political stability, along with the government's ambitious development goals, provide investors with confidence and certainty. This makes the UAE an attractive destination for many expats and non-residents looking to invest.

What are the Types of Investment Plans in UAE?

In the UAE, there are a variety of investment plans that cater to residents and expatriates. There are several asset classes you can consider investing your funds in and generate wealth to achieve your future financial goals.

The investment plans are categorised as per risk appetite. These categories are —

Low-Risk Investments — As the name suggests, these investment plans have minimal risk factors.

Here are some of the best investments in UAE in this category —

Type	Understanding Types of Investment
Capital Guarantee Plans	These plans are a combination of a ULIP plan and a conventional Guarantee Return Plan. Unlike most market-linked commodities, the funds invested in this plan remain 100% secure and there is a 100% capital return guarantee at the time of maturity.
Guaranteed Return Plans	This investment in Dubai is another excellent low-risk investment plan. It is a blend of savings and insurance plans that helps you save a fixed amount regularly for several years. Upon policy maturity, you get an assured return. During the policy tenure, you receive life coverage, which secures your family’s financial security in case a mishap occurs.
Fixed Deposits	This is another low-risk investment in UAE. When you open a fixed deposit account, you earn interest at a pre-determined rate by depositing a fixed amount for a specific period. The deposit offers an assured return upon maturity and works on the power of compounding.
Gold	This is one of the safest and best investments in UAE. You can invest in gold bullion, gold certificates, gold stocks, gold ETFs, and more. When you invest in gold, you get its ownership and earn a profit if the price of the metal rises.
Money Market Funds	This is a debt fund and a short-term instrument. Here, the money you use to buy the fund is invested in different instruments with an assured return of up to 1 year with high liquidity. The major types of money market funds are treasury bills, commercial papers, repurchase agreements, and more.
High-Yield Savings Account	This is another type of investment in UAE and offers higher annual percentage earnings. While conventional savings accounts usually have earnings lower than 1% annual percentage yield, these accounts have higher fixed or variable APY. The interest, meanwhile, is compounded yearly. This type of investment plan is suitable for those with short-term savings goals.
Certificate of Deposits (CoD)	These are fixed-term financial instruments with a higher interest rate than traditional savings accounts. The investment term is usually from 6 to 18 months. CoDs are often offered by banks and credit unions.
Recurring Deposits (RD)	This is one of the best investments in Dubai that enables you to invest money and save every month. The tenure can vary from 6 months to 10 years. The amount gets debited automatically, saving the hassle of remembering the date for depositing money.
National Bonds	This is a Shariah-compliant investment in UAE that is flexible and enables you to save and invest money as per your income brackets. You can buy bonds from banks, exchange houses, and government-run organisations. The investment can begin with an amount as low as AED 100.
Endowment Plans	As an investment plan with a low-risk profile, it is a combination of a savings plan and life insurance. In plain terms, it offers returns that were fixed at the time of policy purchase. This is a safer way to grow money while also receiving life coverage.

Medium-risk Investments — These investment options are ideal for those who have moderate risk appetite and are ready to expose their funds to a certain level of market volatility.

Such investments also help in earning higher returns than low-risk investments. Some of these investments in UAE are —

Type	Understanding Types of Investment
Real Estate	As one of the most sought-after investments in Dubai and UAE, it represents a tangible asset that helps you diversify your investment portfolio. When you invest in real estate properties, you reduce the overall potential risk. The long-term capital appreciation ensures promising returns on investment.
Structured Products	Structured products are becoming one of the most popular investments in UAE. These products are financial instruments whose performance is associated with commodities, indices, interest rates, and stocks.
Exchange-Traded Funds (ETFs)	This is another medium-risk investment in Dubai and UAE. Here, the funds are traded in stock exchanges and help you diversify your investment portfolio. The range of assets also includes equities, commodities, bonds, and more.
Hybrid-Debt Funds	This investment product is a blend of debt and equity investments. A significant portion of funds is invested in debt securities while a smaller portion is invested in equities. This way, it becomes easy to balance income generation and capital appreciation.
Commodities	Another medium-risk investment in Dubai and UAE, this is an ever-evolving sector and includes a range of products — energy resources, agricultural products, and metals.
Private Equity	When you invest in private equities, you balance risk and earn high returns on investment. Most private equities include companies that are not publicly listed, providing a different risk-return profile than public equities and bonds.

High-Risk Investments — If you are a seasoned investor who knows how to invest, you are well-informed about high-risk investments in Dubai and the UAE. If you are someone who wants to try investing in these types of investments, you should know that you can earn high returns on investment. However, the funds you invest get exposed to high market volatility.

Here are the major high-risk investments in UAE —

Type	Understanding Types of Investment
Mutual Funds	This is an investment asset that pools funds from several investors to invest in a diversified portfolio of securities like bonds, equities, and more. Such funds are managed by professional fund managers.
Unit-Linked Insurance Plans (ULIPs)	This investment in Dubai and UAE presents a blend of investment and insurance. When you pay your premium, a part of it gets invested in market-linked assets like equities, hybrid funds, debt, or a mix of all. The remaining portion of the premium goes towards life insurance. Thus, as a policyholder, you can earn returns on investment and life coverage.
Stocks	This is another popular high-risk investment in Dubai and UAE. Stock investment is one of the best long-term investment products where, as an investor, you get a share of ownership in a company or an entity.
Forex Trading	This is another investment in UAE with a high-risk profile. When you participate in forex trading, you simultaneously buy one currency and sell another one. This trading market operates 24/7, with the returns usually being high.
Crypto Investments	This is a high-risk and high-reward investment option.

What are Shariah Investments?

These are Islamic funds that follow the principles of Shariah law. Such investments in UAE are popular for socially responsible investing.

These investments are different from traditional investment funds and have several requirements like

The appointment of a Shariah board
Barring investment in companies whose income derives from the sale of alcohol, gambling, pork products, and more

Investment Goals
Risk Tolerance
Income Level
Emotional Check
Need for Liquidity

Start by setting clear goals.

Identify your requirements and decide what you're investing for — retirement, buying a home, funding education, or covering future expenses. Define your goals as short-term, mid-term, or long-term, and choose investments in Dubai and UAE that align with these timelines.

For instance, short-term goals might involve fixed deposits or mutual funds, while long-term goals could lean towards equity investments.

Understand your risk tolerance to manage investment anxiety. Your perception of risk influences this.

Some of us may prefer low-risk, low-return investments like fixed deposits or gold. Others, however, might accept higher risks for potentially higher returns, such as in equity markets.

Your income dictates how much you can invest in the investments in UAE. Income level also affects risk tolerance.

Higher incomes can handle riskier, larger investments, whereas lower incomes may prefer safer, smaller investments.

Keep emotions in check when investing. Emotional decisions can lead to rash choices. Stick to your goals despite market fluctuations, avoid reacting to market rumours, and maintain a logical approach.

Be prepared for emergencies by choosing investments that can be quickly converted to cash. High-liquidity assets like stocks, fixed deposits, and liquid funds are beneficial.

While not all investments need to be highly liquid, the ability to access cash quickly is crucial.

How to Calculate Investment Return in UAE?

You can easily calculate your investment return using an SIP or investment calculator.

The SIP Calculator is a tool that helps you estimate the returns from mutual fund investments made through SIP (Systematic Investment Plan). It gives potential investors an idea of what to expect from their investments. This tool is especially popular among millennials who want a preview of their potential returns before investing.

It's important to note that actual returns can vary due to different factors. The SIP calculator does not account for exit loads or expense ratios. It simply helps you calculate the SIP amount needed to achieve your financial goals based on an expected annual return.

To know your returns on investment in UAE, you need to provide the following details —

Monthly investment amount
Expected return on investment
Time

How to Become a Millionaire in 10 Years?
What if we told you that you can effortlessly become a millionaire in 10 years? You can easily earn AED 1 million by investing them in the plans offered on Policybazaar.ae. To earn this amount, you need to invest AED 10,000* per month. Pre-determine the expected return on investment per annum, say 4% p.a. This way, you will get the estimated returns of approximately AED 1,000,000. With consistent investments and growth, this can increase the total value of the funds invested.

How to Become a Millionaire in 10 Years?

What if we told you that you can effortlessly become a millionaire in 10 years?

You can easily earn AED 1 million by investing them in the plans offered on Policybazaar.ae. To earn this amount, you need to invest AED 10,000* per month.

Pre-determine the expected return on investment per annum, say 4% p.a. This way, you will get the estimated returns of approximately AED 1,000,000. With consistent investments and growth, this can increase the total value of the funds invested.

What are the Documents Required to Apply for Investment Plans in UAE?

To buy an investment plan in UAE, all you need is an Emirates ID.

However, keep in mind that additional documents may be required by the concerned provider.

Why Buy Investment Plans from Policybazaar UAE?

You should consider buying an investment plan in UAE on Policybazaar.ae. This is a third-party aggregator that offers the top investments in Dubai and UAE.

The plans on our platform can be customised as per your financial goals. Furthermore, they are affordable and offer an edge against predicted inflation.

Here is what happens when you buy investment in Dubai and UAE from us —

Access to investment and SIP calculator - If you are confused about which plans work the best, you can use the investment calculator and enter the amount you want to invest to figure out the returns you want. Click on ‘View Plans’ to know the plans that can help you achieve your target returns.
Round-the-clock customer care service
Customised plans
Assistance from industry experts for further assistance

Click here to Start Your Investment Plan!

Frequently Asked Questions

You can invest in a ULIP plan to get not just high returns on investment but also life coverage.

Yes, both residents and expatriates can invest in Dubai and the UAE.

There are 4 main types of SIPs in the UAE — Perpetual SIP, Flexible SIP, Fixed SIP, and Top-up SIP.

You can grow your money in Dubai by investing in stocks, ULIPs, real estate, mutual funds, gold, and more.

When you consider investing, make sure you create a balanced investment portfolio that not just balances your income but also reduces the risk profile of some assets.