Key Objectives of Investments:
Individuals usually make investment in UAE to -
| Investment Objective |
Description |
| Keep Money Safe |
Capital preservation is a popular investment goal. Though these options may offer lower returns, they keep your savings safe. Some popular investment options include fixed deposits, government bonds, and savings accounts. |
| Grow Wealth |
Another common objective is to grow your money for wealth creation. Capital appreciation, usually a long-term goal, secures your financial future. Investments like real estate, mutual funds, commodities, and equity can offer significant returns, albeit with higher risks. |
| Set Regular Income |
Investment in Dubai and UAE can also ensure a regular income. Some examples include fixed deposits with regular interest payouts or dividend stocks. These options can help manage daily expenses, retirement costs, or recurring payments like education fees or EMIs. |
These investment plans in the UAE can cover your daily expenses after retirement or give you extra income. You can also use them to manage bigger costs like college fees or loan EMIs.
Who Should Invest in Investment Plan in UAE?
You don't need to fulfil any minimum age requirement to invest in Dubai or the UAE. The earlier you start, the more your money can grow over time and meet your financial goals.
Here’s a general age group breakdown of when people usually invest in UAE —
- Early 20s — To develop the habit of saving and create wealth in the future
- Late 20s — To plan a business or early retirement
- 30s — To plan for your children’s higher education and future requirements
- 40s to 50s — To secure your family’s future in case something happens to you. It also helps you prepare financially for your retirement.
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.
What are the Types of Investment Plans in UAE?
As mentioned earlier, you can find a variety of investment plans in UAE. Each plan has its own level of risk and return. The key is to choose an option that matches your goals, timeline, and risk appetite.
Here are some of the best investment plans in the UAE based on different risk levels —
- Low-Risk Investments — Low-risk investments are ideal if you're a conservative investor seeking capital preservation and safe returns. These plans shield your earnings from major market ups and downs, making them a good fit for short-term goals or emergencies.
Here are some of the most reliable low-risk investment plans in the UAE for 2025
| Type |
Understanding Types of Investment |
| Capital Guarantee Plans |
These plans are a combination of ULIPs and conventional Guarantee Return Plans. Unlike most market-linked investments, they keep your money 100% safe and offer capital return at maturity. |
| Guaranteed Return Plans |
A guaranteed return policy is another excellent low-risk investment plan in UAE. It blends savings and insurance and helps you save a fixed amount regularly for several years. Upon policy maturity, you get an assured return. You also get life insurance cover during the policy period to keep your family secure if something happens. |
| Fixed Deposits |
Another low-risk investment in UAE, it helps you earn interest at a fixed rate for a set 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 its price metal rises. |
| Money Market Funds |
This is a debt fund and a short-term instrument. Here, you invest your money in low-risk instruments that offer guaranteed returns for up to 1 year. Their high liquidity means you can access them easily anytime. The major types of money market funds include treasury bills, commercial papers, repurchase agreements, and more. |
| High-Yield Savings Account |
This is another type of investment in UAE with higher annual percentage earnings. They have higher interest rates than conventional savings accounts, which usually have 1% rates or lower. 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 higher interest rates than traditional savings accounts. The investment term is usually from 6 to 18 months. You can invest in CoDs through banks and credit unions. |
| Recurring Deposits (RD) |
This is one of the best investments in Dubai that lets you invest and save every month. The tenure can vary from 6 months to 10 years. The system automatically deducts the amount from your account, meaning you don’t need to remember payment dates. |
| 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 national 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, Endowment plans 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 — Medium-risk investment plans strike a balance between safety and growth. If you want better returns with low-risk, you can choose them. These plans help your money grow steadily with less ups and downs.
Such investments also help in earning higher returns than low-risk investments. Some of these investment options in UAE are
| Type |
Understanding Types of Investment |
| Real Estate |
Real estate is a physical asset that helps you diversify your portfolio. It is also one of the most popular investment options in Dubai and the UAE. You can invest in real estate properties and earn through rent and long-term capital appreciation . |
| Structured Products |
Structured products are becoming one of the most popular investments in UAE. You can link them to things like commodities, indices, interest rates, or stocks. Their returns depend on how the underlying assets perform. |
| Exchange-Traded Funds (ETFs) |
This is another medium-risk investment in Dubai and UAE. Here, you trade the funds in stock exchanges and 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. You invest a significant portion of funds in debt securities while a smaller portion in equities. This way, it becomes easy to balance income generation and capital appreciation. |
| Commodities |
Commodities are another medium-risk investment plan in Dubai and UAE. This is an ever-evolving sector and includes a range of products like energy resources, agricultural products, and metals. |
| Private Equity |
When you invest in private equities (PE), you balance risk and earn high returns on investment. Most PEs include companies that are not listed publicly. They provide a different risk-return profile than public equities and bonds. |
- High-Risk Investments — High-risk investments are designed for investors who are comfortable with market fluctuations in pursuit of higher long-term returns. These plans are better suited for seasoned investors or those with longer investment horizons. If your goal is wealth creation and you can stomach short-term ups and downs, these are the options to explore.
- Here are the major high-risk investment plans in UAE -
| Type |
Understanding Types of Investment |
| Mutual Funds |
A mutual fund is an investment option in UAE where you can invest in bonds, stocks, and other assets. Professional fund managers handle these investments for you. |
| Unit-Linked Insurance Plans (ULIPs) |
ULIP investment in Dubai and UAE presents a blend of investment and insurance. Your insurer invests a part of your prmeium in market-linked assets like equity, hybrid, debt funds, or a mix of all. The remaining portion goes towards life insurance. Thus, you can earn returns on investment and get life coverage. |
| Stocks |
This is another popular high-risk investment in Dubai and UAE. When you buy a stock, you own a small part of a company, and your money grows as the company grows. |
| 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 (and risks) usually being high. |
| Crypto Investments |
This is a high-risk and high-reward investment option. |
How to Calculate Investment Returns in the UAE?
To estimate the returns on your investments in the UAE, use an SIP Calculator. This tool allows you to input details such as your monthly investment, expected return, and investment duration to estimate your potential returns.
Steps to Calculate Investment Return:
- Enter the Monthly Investment Amount: The amount you plan to invest each month.
- Expected Rate of Return: The anticipated annual return on your investment.
- Investment Duration: The number of years you intend to invest for.
While it helps you understand the useful estimate of potential returns, keep in mind that actual results may vary due to factors like market fluctuations and investment fees. It doesn’t account for exit loads or expense ratios but is great for helping you determine how much you need to invest to meet your financial goals
