How to Thrive as a Value Investor in the UAE

What is value investing?

The purpose of value investing is to purchase stocks, bonds, property, or other assets for cheaper than their value. In layman’s terms, it is buying investments on sale. On a global scale, UAE is one of the best countries to make investments in. In this article, we will cover what you need to become a successful value investor and get a UAE investor visa

How does it work?

Simply put, value investing entails locating stocks at cheap prices. A value investor will often use fundamental analytical techniques to determine the intrinsic worth of the stock to locate the deals. The valuation can be done in several different methods. 

Once a value investor is comfortable with their estimation of a stock’s underlying worth, they can assess whether or not the stock’s price reflects that value. The value investor may decide whether or not to buy shares if the stock price seems to be much lower than its intrinsic worth. The investor may decide to keep an eye on the company and wait for a price that seems more like an enticing value if the price is more than its intrinsic worth.

How to master value investing? 

To be a successful value investor, there are a few skills you can master. For example, wait until you can buy assets at prices that are less than their inherent value. 

Furthermore, investors should analyze the financial statements of companies as business owners do to determine their intrinsic values.  Rarely is intrinsic value only one number. Instead, intrinsic value is frequently a range because of the numerous assumptions that go into valuing a complicated organization.

Opportunities for investors in the UAE

Dubai, the commercial capital of the UAE is home to a wide array of opportunities for entrepreneurs and investors alike. For the purpose of this article, let’s take an in-depth look into the types of investments you can make in the UAE.

Making an investment in the UAE is undoubtedly a successful move, considering the rise in real estate and tech. Let’s briefly discuss the best investment options investors have in the UAE, specifically in Dubai:

1. Real estate

Dubai is considered the epitome of wealth and first-rated homes and with the government’s new laws, investing in real estate has become so much easier.  This has made it possible for many foreigners to invest in real estate. This is arguably the most secure, profitable, and trustworthy type of investment. 

UAE investor visa

In Dubai, specific freehold neighborhoods allow 100% ownership of the property for foreign investors. Expat residents and foreign nationals living outside the UAE can acquire full freehold ownership rights to real estate.

2. Stocks Exchange 

The obvious choice for capital investments is stock investing. Through the exchange of their equity through stock investments, individuals can acquire a stake in a variety of organizations. You can invest a lot of money in stocks if you do your research, and are ready to take risks. Lack of market analysis and comprehension, however, could lead to large losses.

The two main stock exchanges in Dubai:
  • Dubai Financial Market
  • NASDAQ Dubai

3. Gold 

This is undoubtedly a profitable investment as Dubai is known as the ‘city of gold’ and when sold it is gold with a manufacturing fee along with the gold price. This sets it apart from the rest of the globe, where manufacturing fees are charged in addition to the price of the gold. In Dubai, making fees are fixed, as opposed to depending on a proportion of gold prices.

4. Cryptocurrency

This is the latest topic on the market. With Dubai being one of the first places in the world to start using crypto as a form of currency – the hype around it has only increased. Cryptocurrencies differ from conventional methods in that they are decentralized and expensive since everyone wants to use them. However, for anyone wanting to search for a good investment option in Dubai – this is one.

If you are considering investing in the country, it will also be ideal to look into and what opportunities you can get with it. 

Types of investor visas in the UAE:

1. Investor visa for 10 years 

If an investor owns shares in a company worth at least AED 10 million, they can also apply for this visa while working as a partner in an established company in the UAE. Keep in mind that you shouldn’t lend this money and that you must keep the investment for at least three years in order to qualify. People with specialized talent in research, medicine, and technology may be eligible for a UAE investor visa from the government.

2. Investor visa for 5 years 

If you make significant financial investments in real estate, you may be qualified to apply. Keep in mind that this investment must be at least AED 5 million, cannot be a loan, and must be maintained for 3 years. 

To understand your options better and the benefits of each type of visa, it is advisable to consult a professional business setup consultant who can guide you in the right direction.