The UAE is not just a place to live and work to earn tax-free income; it is also a destination that offers attractive investment opportunities to expats.
Whether your goal is to retire in the UAE, earn passive income while working, or return to your home country with significant wealth, the UAE is home to many investment assets that can help you achieve your aims.
Given that more than 60% of millionaires in Dubai are self-made, according to Altrata, a data and intelligence company, you don’t have to worry that you don’t have an inheritance or windfall. By consistently investing in the best investment in the UAE for expats, you can set yourself up for a prosperous future.
Moreover, investment gains in the UAE are not taxable for individuals. Thus, if you decide to pack your bags and leave, you won’t have to worry about paying significant taxes on your capital gains.
In this article, we consider the best investments in the UAE for expats. We’ll cover:
- Local UAE stocks and ETFs
- Foreign stocks and ETFs
- Local and foreign real estate
- Precious metals
- Cryptocurrencies
- Local and foreign fixed-income securities
- Local and foreign mutual funds
- Robo investing
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1. Local UAE stocks and ETFs
The UAE is home to many thriving public companies listed on the Dubai Financial Market (DFM), the Abu Dhabi Securities Exchange (ADX), and Nasdaq Dubai.
A comparison of the UAE stock market with other stock markets and the global stock market shows that it is indeed a profitable way to invest your money.
The MSCI UAE Index covers the large-cap and mid-cap components of the UAE stock market, which is equal to 85% of the total market.
This index has a 5-year annualized return of 19.17%, which is higher than that of the MSCI Emerging Markets Index (6.81%), which covers all emerging markets, the MSCI ACWI Index (13.65%), which covers the global equity market, and the S&P 500 Index (14.2%), which covers the US stock market.
Annual Performance of MSCI UAE, MSCI Emerging Markets, and MSCI ACWI
Source: MSCI
If we extend this to the 10-year annualized return, its 5.93% annualized return still exceeds that of the MSCI Emerging Markets Index (4.81%), even though it underperforms the MSCI ACWI Index (9.99%) and the S&P 500 (10.9%).
The point here is that the UAE, as an emerging market, consistently performs better than an index covering all emerging markets, and can outperform the global equity market and even the US stock market over certain periods.
Another example of the latter can be seen in its 2025 yield-to-date (YTD). While the S&P 500 Index and the MSCI ACWI Index are up 6.43% and 10.05%, respectively, the MSCI UAE Index is up 20.66%.
If you are an expert and you are ignoring the local UAE market, you may be missing out on some solid UAE investment opportunities.
You can invest in the local UAE market by purchasing individual stocks through any of the popular brokers or buying an exchange-traded fund (ETF) that tracks the local UAE market through a platform like Sarwa.
An ETF tracks the performance of an index. For example, the DFM General Index is an index that covers all 57 companies listed in the DFM. An ETF that tracks this index will invest in all its 57 constituents.
Thus, when you invest in a DFM General Index ETF, you have indirect exposure to all its 57 constituents.
Which expats are these appropriate for?
Stocks in general are appropriate for expats seeking high returns and don’t mind dealing with the high risk of the stock market. They remain one of the most popular ways to build wealth over the long term.
Buying individual UAE stocks is appropriate for expats who have solid investment knowledge, investment experience, and the time to analyze individual stocks.
If you don’t have all three, you are better off purchasing an ETF that tracks the local UAE market.
Moreover, purchasing an ETF over individual stocks is cost-effective (single commission over multiple commissions on multiple purchases), less risky (you benefit from diversification), and less time-consuming (single order instead of multiple orders).
Tips for investing in them
- Choose a licensed broker or platform: Brokers in the UAE are licensed by the Securities and Commodities Authority (SCA). Verify that the broker you choose is registered with them.
- Shop around for the best broker: Whether you are using an online platform or a brick-and-mortar broker, compare the value they provide (usability of platform, educational resources, minimum investment requirements, speed of trade execution, etc.) and the fees they charge before deciding on one.
- Do your research or buy ETFs: If you are buying individual stocks, ensure you do both fundamental and technical analysis before choosing a stock to buy. If you can’t do a thorough research, you should buy an ETF instead.
2. Foreign stocks and ETFs
Anyone looking to build wealth in the stock market should not overlook a global market like the US. The US is the biggest economy in the world, and its stock market is the most liquid, transparent, diversified, and largest.
While the UAE stock market has outperformed it over the past five years, it has produced superior returns over a longer timeframe (10 years).
Also, the US market provides access to other global markets. There, you will find ETFs that focus on emerging markets, developed markets, specific themes (artificial intelligence, climate change, etc.), and investment strategies (growth, value). The opportunities are endless, and you may even find an ETF that includes stocks in your home country.
Interestingly, as a UAE expat, you can buy US stocks and ETFs in the UAE through platforms like Sarwa without leaving the comfort of your home.
Which expats are these appropriate for?
Expats seeking to build wealth by investing in the best companies across the globe (the Google, NVIDIA, and Apple of this world) will find solace in foreign stocks and ETFs.
Many of these companies have produced superior returns in the past and are poised to continue to do so in the future. Therefore, growth-focused investors should consider getting exposure to them.
However, as said before, stocks are risky. If you have low risk tolerance, you can reduce the risk of investing in stocks by purchasing them through ETFs and holding them as a long-term investment.
Tips for investing in them
- Choose the right platform: Many platforms provide access to global markets from the UAE. Choose the one that provides the best value for the money.
- Conduct thorough research or buy ETFs: Like local stocks, buying foreign stocks requires investing time in research. If you don’t have the time or skills, ETFs may be better.
3. Local and foreign real estate
Dubai has become a popular destination for real estate investors. Apart from its tax efficiency, UAE real estate also boasts globally attractive rental yields (5%-9%).
In addition to rental yields, price appreciation is another way to make money from real estate investment. You can expect a 3-4% average annual price increase in Dubai and Abu Dhabi, according to Next Level Real Estate, a real estate company.
Similarly, the compounded annual growth rate (CAGR) of the UAE residential property index between 2004 and 2024 is 1.82%, according to data from CEIC, a resource for global economic data.
This puts the average annual total return of the UAE real estate market between 7% and 13%, approximately.
However, purchasing real estate has its challenges.
First is the capital outlay required. You will need hundreds of thousands of dirhams (AED) to buy a good property in a desired location. Even if you finance with a mortgage, the down payment will still run into tens of thousands or even hundreds of thousands of dirhams.
Not many expats can afford that.
Second is the illiquidity of real estate. For an expat who can leave at any time, you want an investment that you can sell quickly. Depending on current conditions, a property on offer can remain unsold for months.
Third is the high fees. The closing costs of a real estate transaction can be as high as 10% of the purchase price, according to Bayut, a real estate marketplace.
Similarly, there are ongoing costs associated with real estate ownership. If you purchase to sell, you will incur these costs until you find a buyer, and if you rent, some portion of the ongoing costs will still fall on you, depending on the lease agreement.
One way to deal with these challenges is to buy Real Estate Investment Trusts (REITs) instead. These are stocks of real estate and mortgage companies. Since the earnings of these companies depend on the real estate industry, purchasing them is an indirect (but liquid, cost-effective, less risky, and accessible) way to gain exposure to the real estate market.
As an expat, you can easily sell these REITs on stock exchanges in a few seconds or minutes whenever you are ready to leave.
There are many REITs listed on DFM and Nasdaq Dubai. Any broker providing you access to local stocks can also help you buy and sell REITs. Also, you can buy ETFs of various REITs to enjoy diversification and cost efficiency.
Similarly, you can invest in global real estate markets by purchasing REITs of their real estate and mortgage companies. A platform like Sarwa that provides access to global stocks and ETFs also offers REIT ETFs.
Which expats are these appropriate for?
Expats who have a plan to leave should prefer liquid investments. Thus, REITs should be prioritized over physical real estate.
However, if you don’t plan to leave and you are big on tangible assets over paper investments, physical real estate may be more appealing (provided you have enough money to invest in it).
In that case, you need to be aware that a comparison of real estate vs stocks’ historical returns favors the latter. More interestingly, the only time the real estate market can compete with the returns of the stock market is when you invest in REITs.
Tips for investing in them
- Focus on Class B properties: If you want to invest in physical real estate, focus on less luxurious and older properties in desired locations (Class B properties). Upgrading such properties to modern taste can provide a gold mine.
- Diversify your REIT holdings: If you prefer REITs, then you need to diversify your REIT holdings across sectors (office space, retail, industrial, etc.), geographic exposure (Dubai, US, etc.), and investment methodology (buy-and-hold properties, rental properties, etc.).
One way to enjoy broad diversification is to purchase REIT ETFs instead of individual REITs.
4. Precious metals
When global stock markets were experiencing downturns in the latter part of February and the early days of April, gold and silver stood their ground. Both precious metals made new all-time highs (ATHs) in 2025, showing why investors have always considered them safe havens.
At the time of writing, gold’s 27.86% YTD and silver’s 32.5% YTD exceed that of the S&P 500 (6.43%) and the MSCI UAE Index (22.06%).
In essence, precious metals like gold and silver are a good way to diversify a portfolio and protect it from economic uncertainty and market downturns. They can also serve as an inflation hedge and store of value.
You can purchase gold and silver in the form of coins and bars (bullion). However, this comes with the problem of illiquidity (finding a counterparty), insecurity (they can be stolen if not well kept and safekeeping adds extra cost), and high cost (retailer’s fees and price premiums).
Also, if you have to leave the UAE, you may be forced to choose between selling your physical precious metal and traveling with it. Both may involve significant costs and inconvenience.
Another option is to gain indirect exposure to gold and silver’s price through the stocks of mining companies. The earnings of these companies depend on the price movements of gold and silver, which makes investing in them a good way to access the precious metals.
Mining stocks are liquid, do not require safekeeping, and are cost-effective.
You can also buy the ETF of these stocks instead of purchasing them individually.
Another option is to invest in exchange-traded commodities (ETCs). These are funds that purchase and safeguard large quantities of gold. You can purchase a share in these funds instead of buying physical gold or silver.
A share in these investment funds gives you an indirect exposure to the precious metals held by them. However, when you sell your shares, you will receive fiat currency instead of physical gold. Thus, you can profit from the price movements of gold without physically owning it.
Which expats are these appropriate for?
Knowing how to invest in gold is appropriate for expats looking to have a diversified portfolio that can withstand market pressures. Investing in silver is also a good idea since it does the job of gold while being 90x cheaper.
Tips for investing in them
- Choose a trusted retailer: If you are buying physical gold or silver, ensure you choose a reputable retailer who will sell quality products at competitive fees.
- Verify what you are buying: Even when you choose a trusted retailer, verify the purity and authenticity of the gold before paying. If you are ordering online (where you will have to pay before touching the precious metals), ensure that you only buy from online retailers with a favorable return policy.
- Choose stocks that truly correlate with the underlying precious metal: If you buy mining stocks instead, ensure you choose a company whose earnings (and stock prices) are truly correlated with that of the relevant precious metal. When correlation is high, you can be sure that an exposure to the stock mirrors exposure to the underlying precious metal to a reasonable extent.
- Shop around for the ETFs or ETCs with the best value: When buying ETCs and ETFs, choose the one with the best combination of diversified holdings, competitive returns, competitive fees, and high correlation with the underlying precious metal.
5. Cryptocurrencies
Some years back, many people thought cryptocurrencies were just a fad that would soon fade. We are already 16 years from the launch of Bitcoin, and the cryptocurrency has already surged past $100,000 per BTC.
But isn’t bitcoin very risky?
Yes, it is. However, it also provides high returns.
If we adjust these returns by risk (what is called risk-adjusted returns), we find that bitcoin has a higher risk-adjusted return than stocks.
Similarly, bitcoin’s volatility is reducing. Investors who treat it as a long-term asset rather than a get-rich-quick scheme have less to worry about.
Many altcoins (other types of cryptocurrencies apart from bitcoin) also have sound fundamentals that can make them long-term drivers of value.
There are platforms like Sarwa where you can buy bitcoin in the UAE and also invest in altcoins.
You can also buy bitcoin and ethereum ETFs if you don’t want to bother with creating a crypto wallet and keeping private keys safe. With crypto ETFs (like ETCs), the fund handles the safekeeping of the crypto assets while you own a share in the fund itself that can be converted into fiat currency.
Which expats are these appropriate for?
If you possess high risk tolerance and a long-term horizon to handle short-term fluctuations, cryptocurrencies can help increase your risk-adjusted returns.
Tips for investing in them
- Keep the allocation small: Your crypto allocation should not exceed 10% of your overall portfolio. Though volatility is reducing, cryptocurrency is still one of the most volatile asset classes.
- Include only altcoins with sound fundamentals: Before purchasing any altcoin, ensure you understand its technology and what problem it is solving. Then consider if there is demand for the problem it is solving, and if its marketing is strong enough to drive current and future demand.
6. Local and foreign fixed-income securities
Investors desire to earn stable income from their portfolios for various reasons.
Those nearing retirement need the income to meet their monthly needs and wants during retirement. Some who are far from retirement want to earn consistent passive income to meet some of their needs/wants or to maximize the benefits of compounding through reinvestment.
This is why some investors prioritize rental income and dividend income in their investment strategies.
Fixed-income securities like treasury bonds (called ‘national bonds’ in the UAE), corporate bonds, treasury bills, treasury notes, commercial papers, certificates of deposits (which pay higher interest than savings accounts), and fixed deposits, among others, provide another solution.
Also, because these fixed-income securities are low-risk and low-return, investors use them to reduce the risk exposure of their portfolio.
Imagine having a portfolio with only stocks and bitcoin? A single macroeconomic event can see your portfolio fall by 30%, for example. How many investors can handle that stress?
Thus, even if you don’t need to earn income from your investment portfolio, fixed-income securities assets can still be beneficial to your portfolio.
Like stocks, you can purchase local fixed-income securities through local brokers. Some of these brokers also provide access to foreign fixed-income securities, though this will require some extra documentation.
Interestingly, some fixed-income securities from the Middle East, Europe, Asia, and Africa are already listed on Nasdaq Dubai and available through local brokers.
Sarwa provides a more convenient way to access fixed-income securities: ETFs. Instead of going through the stress of buying individual securities, you can invest in many of them through ETFs.
Which expats are these appropriate for?
Income-seeking expats and those looking to reduce the risk profile of their portfolio will benefit from investing in fixed-income securities.
Tips for investing in them
- Understand country-specific risks: Since fixed-income securities are debt instruments, much depends on the creditor’s creditworthiness.
Treasury securities are the most common fixed-income securities. These are debt instruments issued by the federal government of a nation (for example, the UAE government issues treasury securities through the Ministry of Finance).
Before buying them, ensure that the country’s finances are sound. You can check its bond ratings on platforms like Moody’s, S&P Global, and Fitch.
Even when you invest in treasury ETFs, ensure that the ETF of interest does not have too much exposure to treasury securities from countries you deem risky.
- Understand company-specific risks: If the creditor is a corporate organization, you will need to do the same due diligence. Check their ratings on the platforms listed above to assure yourself of their creditworthiness.
Similarly, if you red flag certain companies, then ensure the ETF you are buying does not have too much exposure to them.
- Compare interest rates: While it is good to go for fixed-income securities with high interest rates (or yield), you should understand that higher interest rates can reflect lower creditworthiness. That is, the more risky the creditor, the higher the interest rate offered to encourage people to buy.
Thus, higher interest rates should be seen as a positive only when two securities have the same creditworthiness (for example, if A and B have the same creditworthiness but A’s interest rate is 2% higher).
7. Local and foreign mutual funds
Mutual funds are investment vehicles that pool money from multiple investors to invest in a variety of assets (stocks, fixed-income securities). Each investor will have a share in the mutual fund that can be converted to fiat currency.
I am sure you must have noticed the similarity between ETFs, ETCs, and mutual funds.
What are the differences?
The main one is that mutual funds are actively managed, which means they seek to outperform a given market index by making regular buy and sell decisions. On the other hand, most ETFs are passively managed, which means they mirror the performance of an index (hold the same securities as the index) and will only buy and sell when the index changes.
Since the regular buy and sell decisions made by mutual funds are done by professionals, their cost of operation is high, and they pass it on to investors. ETFs, on the other hand, only replicate an index, which makes their cost of operation minimal.
Also, ETFs (like stocks) can be traded during the normal trading hours, while mutual funds can only be traded after the close of trading hours, which makes them less liquid.
Interestingly, mutual funds have generally failed at their main selling point – outperforming their indices.
“65% of all active large-cap US equity funds underperformed the S&P 500, worse than the 60% rate observed in 2023 and slightly above the 64% average annual rate,” reported S&P Global, a financial services firm, in the 2024 SPIVA report.
Percentage of Large-Cap Domestic Equity Funds Underperforming the S&P 500 Each Year
Source: S&P Global
Paying high fees when the outperformance hardly materializes is one big reason why many financial advisors take the side of passive funds like ETFs in the active vs passive investment discourse.
Which expats are these appropriate for?
Expats who want professional management may prefer mutual funds to ETFs. However, as we have seen, they have to ask if the professional management is worth the cost.
Actively-managed ETFs are a low cost, more liquid, and more transparent alternative to mutual funds offered by investment companies. However, exchanging mutual funds for actively-managed ETFs does not solve the underperformance problem.
Tips for investing in them
- Spend time with the prospectus: Every mutual fund has a prospectus that details its investment methodology, fees, historical performance, and management team. Before choosing a mutual fund, you need to comb through this document.
- Prioritize transparent funds: Some mutual funds are not transparent about their holdings – they see it as a trade secret that should not be publicized. However, you need to know what a fund invests in before buying shares in it. A measure of transparency is essential, especially if you are a Halal or impact investor.
- Choose the fund with the best value for money: Compare historical performance, holdings, transparency, fees, and risk profile before choosing a mutual fund. Choose the one that provides the most value for money.
8. Managed investing
We mentioned that not everyone has the skills or time to choose individual stocks, and that is a major reason why ETFs can be a better option.
But choosing the ETFs to buy and allocating your money between stock ETFs, fixed-income ETFs, REIT ETFs, crypto ETFs, precious metal ETFs, and REIT ETFs also requires time and skills.
Robo-advisors or digital wealth platforms like Sarwa Invest can take that burden off you. They will seek to understand your investment goals, time horizon, and risk appetite, and then create a personalized and efficient portfolio for you based on the latest technology and portfolio management theories.
Digital wealth platforms will decide on the allocation formula and select the ETFs to purchase under each category. Some, like Sarwa, will also provide you with an option to include bitcoin in addition to traditional assets like stock and bond ETFs.
Below is a sample portfolio from Sarwa’s Invest product:
Sample Sarwa Portfolio
These platforms also allow you to automate your investments through automatic debits on your bank account. You can also automatically reinvest your dividends and rebalance your portfolio.
Sarwa also creates specific portfolios for Halal and impact (socially responsible) investors.
If you are already subscribed to the UAE Golden Pension Scheme, the UAE government’s retirement plan for expats, you can supplement it with regular contributions to a robo-advisory portfolio to increase your nest egg.
Which expats are these appropriate for?
Investment platforms like Sarwa are appropriate if you are a passive investor who doesn’t have the time and skills to build an investment portfolio from scratch, or you prefer to have an expert do it for you.
Also, it may be a good option if you are a Halal or impact investor, and you want a portfolio that perfectly matches your priorities.
Tips for investing in them
- Look for genuine personalization: Many robo-advisors offer to create personalized portfolios, but end up rehashing the same portfolio for all of their clients. Choose a robo-advisor that understands your unique financial situation and offers a truly personalized solution.
- Consider the full suite of services: Look out for features like automated investments, automatic rebalancing, automated dividend reinvestment, and an opportunity to speak with actual wealth advisors.
How to create the best investment plan in the UAE
One thing we have learnt so far is that there is no one best investment in the UAE for expats. The UAE investment options we have considered serve different functions – providing high returns, reducing risk, providing income, and magnifying risk-adjusted returns.
Thus, the best way to invest money in the UAE is to create a portfolio that includes many of these assets in a way that matches your risk tolerance and time horizon, and is best poised to achieve your investment goals.
As we have seen, you can register for a robo-advisor that will do all of that on your behalf.
However, if you want to have maximum control over what you invest in (especially if you like alternative assets like precious metals and cryptocurrencies), you should create your portfolio of individual stocks, fixed-income securities, REITs, precious metals, cryptocurrencies, or a portfolio of stock, fixed-income securities, REIT, precious metals, and cryptocurrency ETFs.
If you have multiple long-term goals (retirement, creating a startup, etc.), you should consider creating multiple portfolios for each goal.
Once you have your portfolio(s), you should create a monthly investment plan, which will specify how much you will be investing in them every month.
By consistently investing every month into your portfolios, you will be on track to build wealth and achieve your financial goals.
At Sarwa, we provide you with an all-in-one platform where you can buy stocks, stock ETFs, bond ETFs, REIT ETFs, bitcoin, altcoins, gold and silver stocks, gold and silver ETCs, and stock options, among others.
We charge a competitive commission of the higher of $1 or 0.25% of the traded value, and we provide free transfers from your local bank account to your Sarwa account, and vice versa.
You can get started on Sarwa with as little as $1.
We process your deposits immediately, and we secure your data and money with bank-level security.
Our platform is easily navigable, as we provide a top-quality user interface and user experience. We also provide educational resources that will make you a better investor and trader through our blog and newsletter.
Are you ready to create the best investment plan in the UAE? Sign up today for Sarwa to securely, cost-effectively, and conveniently build a portfolio of the best investments in the UAE.
Takeaways
- Expats in the United Arab Emirates have access to a diverse set of investment assets, including local and foreign stocks/ETFs, real estate, REITs, precious metals, cryptocurrencies, fixed-income securities, mutual funds, and robo-advisory platforms.
- There is no one best investment in the UAE for expats. The best way to invest money in the UAE is to combine these assets in a diversified portfolio.
- If you are a beginner who doesn’t have the time or skills to create and manage a portfolio, consider sticking to personalized portfolios created by robo-advisors.
If you create your portfolio yourself, consider prioritizing ETFs over individual assets, except you have the time and skills to analyze them and the financial muscle to create a diversified portfolio of them.