The first quarter of 2024 saw 30 brokerage firms operating in the Dubai Financial Market execute over 1.014 million transactions, involving 22.7 billion shares, with a value exceeding AED 50.9 billion.
In light of global events and economic fluctuations, diversification across sectors and geographies is emphasised by UAE investment and finance professionals when advising on investment ideas for 2024.
As the UAE makes its position as a strong worldwide economic hub, investors are eager and trying to find several ways and strategies to invest in 2024
Industry experts have provided their perspectives on promising industries, investment opportunities, and potential challenges that may arise.
Which investments in the UAE should you make this year?
In the upcoming year, the UAE is going to see a great hike in the economy following multiple sectors. Dr. Ryan Lemand, the CEO and co-founder of Neovision Wealth Management in Abu Dhabi, states that the demand for residential and commercial real estate is still high, especially in Dubai and Abu Dhabi.
“The financial services industry is going to experience strong growth, propelled by the achievements of digital transformation and strong banking performance. In addition, the tourism and hospitality industries are recovering amazingly from the pandemic thanks to high-profile and great events and a rise in foreign visitors. In line with the UAE’s environmental objectives and investments in wind and solar projects, the renewable energy industry is expected to expand rapidly, he stated.
Furthermore, “from a global stocks perspective,” industries including technology, healthcare, and renewable energy are well-positioned for sustained and possible growth, according to Mike Coady, a financial advisor in the United Arab Emirates with more than 20 years of financial industry expertise, who spoke with Arabian Business.
The tech industry is still thriving because artificial intelligence, cybersecurity, and cloud computing are all still advancing. Healthcare is still growing because of biotechnology advancements and the emphasis on wellness that is placed on a worldwide scale. As nations around the world strive for environmentally benign and sustainable energy sources, renewable energy is also gaining traction, he said.
Gold is defined as a “Safe Haven” Investment in 2024
As was already indicated, both experts predicted that soon, commodities and gold prices will continue to rise.
Gold’s standing as a “preferred safe-haven asset” is reinforced by ongoing geopolitical tensions and global economic concerns, according to Dr. Lemand.
Gold is still defined as a safe-haven investment since it is one of the protectors against inflations. Due to limited availability and increased demand, commodities like oil and natural gas may also suffer price hikes. But given that significant changes in policy or the economy could have an impact on these assets’ performance, investors should keep a careful eye on market dynamics, he added.
Furthermore, he added, new investment opportunities are emerging in fields like artificial intelligence and green hydrogen, which as a clean energy source has the “potential to revolutionise” businesses.
“Investment prospects are expanding due to artificial intelligence and machine learning technologies, especially in data analytics, automation, and cybersecurity. Non-fungible tokens (NFTs), which have grown remarkably in the digital art and collectibles markets despite having greater volatility and risk, are another unexpected asset that may be worth considering, the expert added.
The UAE real estate industry has an “incredible future,” since improvements are expected in 2024.
Nonetheless, while contemplating asset allocation for 2024, both specialists underscored the significance of diversity.
Assets like gold are set to hold their value as a protector against inflation and economic uncertainty, while government and corporate bonds offer stability and stable income. Real estate is still a solid option, particularly in desirable areas of Dubai and Abu Dhabi.
According to the experts, changes are anticipated in the UAE real estate industry in the upcoming year.
Some investors might expect a downturn at some time, and some maintain the belief that pricing in Dubai and the UAE, for example, will continue to rise as long as demand remains high. However, I think most foreign investors and expats would think that the UAE has a bright future and is frequently undervalued in comparison to some of its counterparts in other global cities. That being said, real estate investments will always have ups and downs, according to Coady.
Dr. Lemand of NeoWealth echoed the sentiment, stating that government programs aimed at luring foreign investment and residence are anticipated to drive up demand for real estate.
Real estate transactions are becoming more efficient and transparent because of advancements in property technology, or proptech. Furthermore, he noted that customer demands for eco-friendly living environments and regulatory constraints are driving an increasing emphasis on smart and sustainable buildings.
Tips for individual investors when putting a plan together
According to Dr. Lemand, individual investors should begin by determining their financial objectives, risk tolerance, and investment horizon before drafting an investment plan.
The secret to reducing risk is diversification, which calls for distributing investments among several asset classes and geographical areas. It’s also critical to routinely assess and modify the portfolio in response to shifts in the market and individual financial situations. Investment decisions may be further improved by consulting financial consultants, keeping up with market trends, and following economic developments, he said. It is also “crucial” for investors to remain adaptable and aware of new opportunities as markets shift. He said that investors should keep an eye out for new initial public offerings (IPOs) and developing businesses to invest in, as the UAE is changing quickly.
In anticipation of 2024, Coady offered the following advice for creating an investing strategy:
Establish definite objectives: Specify your financial goals for the short, medium, and long terms. You will have a better understanding of the goals required to reach aims if you make explicit goals.
Diversify: To lower risk, diversify your investments by distributing them over a range of asset classes.
Stay Informed: Remain informed by following financial news, market movements, and investment opportunities.
Risk management: Recognize your level of comfort with risk and modify your portfolio accordingly.
Seek professional guidance: To create a plan that fits your objectives and risk tolerance, speak with a competent and trustworthy financial counsellor.
Evaluate and modify your investing plan regularly to take into account shifting market conditions and individual objectives. To make well-informed and more confident investment decisions, you should always prioritise financial education,” he said.
Leave a Reply