Thursday 18 July 2024

The best Sharia-compliant investment products for UAE residents in 2023

DUBAI, September 18, 2023

The UAE is a growing market for Sharia-compliant investment products. Holding the fourth position in the Islamic Finance market with investment assets slated at $222 billion, the UAE is seeing much projected growth within the region. 
It is estimated that more than 60 percent of Muslims prefer sharia-compliant investment products as it helps them save for their future while keeping with their religious beliefs.
In this article, we explore the best Sharia-compliant investment products for UAE residents in 2023.
What is the best Sharia-compliant investment products for UAE residents in 2023?
Before settling on the best Sharia-compliant investment products in Dubai, you must do a risk analysis. This is an important step as depending on your risk appetite, you then choose the investments. You could start by being a cautious investor or plunge directly into really risky ventures that do pay more.
Some of the best sharia-compliant investment products for UAE residents are:
Investments through banks – all UAE banks offer various investment plans that are completely Sharia-compliant. 
Gold – buy gold in jewelry form, bars or even in gold ETFs.
Sukuk – a fixed-income investment product that offers fair share of the profits.
Real Estate Investments (REITs) – these are great if you want to wet your feet in the property market without shelling out tons of dirhams. You get a share of the rental income collected. 
Wakala Deposits – a specialized Islamic financial contract where your money is invested in assets on your behalf. You are provided with fair profits based on a sharing system between you and usually the bank.
Stock – you can trade in local stocks in the Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX) and for international stocks try Nasdaq Dubai.
How do I choose the right Sharia-compliant investment product for me?
With so many options available in the market, you may be wondering which sharia-compliant investment products in UAE 2023 is suitable. For this, you must assess your own financial requirements by asking questions such as:
Do I need monthly installments from the investment?
Do I keep the investment for long term?
Will the dividends I get from stock or bonds suffice my needs?
What type of diversification am I looking for in my investment portfolio?
What is my risk appetite?
The next step is to investigate each of the investment plans. Some plans incur fees which could include commission for your investment manager. You must also consult with your investment manager about the best option based on your current financial situation and future financial goals.
Where can I buy Sharia-compliant investment products in the UAE?
Banks provide the best sharia-compliant investment products for UAE residents. Some banks even have dedicated investment managers to help with your decision making. You can choose from Sukuk, mutual funds, trading securities and much more.
The most popular options are:
Dubai Islamic Bank
First Abu Dhabi Bank
Abu Dhabi Commercial Bank
Sharjah Islamic Bank
Emirates NBD
Emirates Islamic Bank
While there are some great Sharia-compliant investment products for UAE Millennials, you must always remember to do your due diligence. Research into the company is vital as it provides you with knowledge of how to choose the right Sharia-compliant investment product that fits your needs. You can even diversify your portfolio with different investments based on the risk factors.


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