These days, when you think of wealth you think of Dubai. Dubai has emerged to become the financial and business hub of the United Arab Emirates (UEA), which is one of the top investment hubs in MENA (the middle east and north Africa). Investors looking to grow their wealth need to make sure that they have coverage in Dubai, but what should they be investing in?
First, it is worth looking at Dubai’s booming economy. As with everywhere, Dubai was hit hard by COVID-29 but is on track to grow 2.1% this year and it is predicted that this will jump to 4.2% in 2022. Economic activity has recovered in the second quarter of 2021 and almost reached pre-COVID-19 levels and a successful vaccination drive has helped life to return to (almost) normal.
A Region With Many Millionaires
It is certainly an area that attracts interest from investors, especially those with plenty of wealth. The UEA has at least 88,700 millionaires and a study found that they keep 26% of their wealth in non-liquid assets, such as business interests. 24% is tied up in equities, such as villas and other properties. Just 16% is kept easily accessible in cash or bank accounts, so it is clear that investing is used to grow wealth.
Areas of Investment
So, what are the industries that people are investing in? UEA millionaires have managed to acquire and grow their wealth through investing in a number of thriving industries in the Middle East. This includes financial and professional services (18%), oil and basic materials (15%) and real estate and construction (10%). Other industries include transporting and logistics (8%), tech and telecoms (7%) and healthcare (6%).
With a booming economy, Dubai is a hotspot for investors with many thriving sectors. There are many good options for investment areas in Dubai and the UEA, including the financial market, real estate, technology, tourism and import/export.
Growing Your Wealth
For those looking to capitalise on this growth and invest in Dubai to grow their wealth, it is important that you speak to wealth managers. You do not want to take too much risk when it comes to wealth management, so speaking to a specialist is a smart move as they can understand your life goals and develop an investment strategy that aligns with this. Wealth management also includes an overall look at your finances to find positive steps that can be taken to support your ambitions in life.
It is clear that Dubai is continuing to rise and becoming a major global financial and business hub. Those looking to grow their wealth will see this is an area worth investing in and this has been how many millionaires have built and grown their wealth in recent times.