These UAE investments will help NRIs get richer

Investment resolutions are a common practice for anyone who handles even a token amount of money. But they are a more complicated affair in a place like the UAE where a consumer culture, and the associated problem of chronic debt, is growing.

In March last year, business consulting firm Strategic Analysis estimated that consumer debt in the UAE had reached $114 billion (Dh348,000 per household). This makes it imperative on people to plan their investments prudently. With the assistance of experts, Gulf News has compiled a list of investment tips for the year ahead:

Save and save more: Consider using vouchers and apps offering deals and keep track of cash-back and loyalty schemes. Religiously examine all your options to get better deals on everything — from groceries to insurance policies.

Pay your credit card dues: Understand that the flexibility of your credit card is a two-edged sword: interest rates on credit cards in the UAE are around 30% annually, which experts say is higher than other developed markets. Don’t wait till the deadline to clear payments. If required, move your outstanding balance to an interest-free transfer card.

Budget monthly: Living in the UAE, you will have an idea of how much your monthly payments — rent, telephone, fuel and so forth — come to. Set aside an amount for other expenses and push avoidable expenses to the end of the month. Depend on savings options for dining, shopping and other activities.

Keep a will ready, invest in life insurance: As the government can take over your assets and freeze your accounts if you die without a will, prepare a formal will with details of who will inherit your property. A life insurance policy will also make life easier for your heirs.

Keep track of global trends in market investments: Stay informed of market developments in the U.S. and Europe particularly as Donald Trump takes office and Brexit-related moves continue. Experts recommend a diversified U.S. midcap portfolio. Gold is also another safe option. Online trading is a lucrative option; however, investors should understand the perils of mostly relying on internet information as past research has shown.

Prepare for retirement: No matter how young you are, remember you will have to retire one day. A frugal, save-first mentality requires discipline.

• UAE
• investment
• investor
• Dubai
• NRIs