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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
May 1, 2025
UAE is still one of the world's leading investment destinations. In 2024, the UAE kept its top spot on the National Entrepreneurship Context Index for the fourth year. Despite a 2% global decline in foreign direct investment, it still stood out as a regional powerhouse. For forward-thinking investors, the UAE is a goldmine of opportunities, both regionally and globally.
In this article, we'll take a look at some promising investment opportunities in the UAE. We'll also discuss how to make sure your investment complies with local regulations.
In this article, we'll take a look at some promising investment opportunities in the UAE. We'll also discuss how to make sure your investment complies with local regulations.
Disclaimer: We're not financial consultants, so we can't tell you where to put your money. This article is just a thought piece. If you need help with visas, business documents, etc., feel free to contact us. We're experts at it.
Why invest in the UAE?
- Strategic location: The UAE is at the center of a market that reaches more than 2 billion people — all within a 4 hour flight radius. This makes it compelling for business and therefore for investment.
- Tax benefits: There is no personal income tax in the UAE. The Corporate Tax rate is one of the lowest in the world at 9%, with potential for 0% in certain cases. The VAT rate is also minimal at 5%.
- High return: UAE offers compelling return on investment (ROI) in several high-growth sectors such as real estate, FinTech, etc.
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Best ways to invest money in the UAE
1
Real estate
Average rental yields in Dubai range from 5% to 8%, well above cities such as London (3.4%) and New York (3.7%). Some areas, like Jumeirah Village Circle (JVC), even offer returns above 7%. You can get in at an affordable price and still make a decent return. Places like Discovery Gardens and Dubai Investment Park (DIP), on the other hand, can give you up to 11%.
Average rental yields in Dubai range from 5% to 8%, well above cities such as London (3.4%) and New York (3.7%). Some areas, like Jumeirah Village Circle (JVC), even offer returns above 7%. You can get in at an affordable price and still make a decent return. Places like Discovery Gardens and Dubai Investment Park (DIP), on the other hand, can give you up to 11%.
Market Data
City | Average rental yield | Average property price per sq ft |
Dubai | 5-7% | $400-$820 USD |
Abu Dhabi | 6-8% | $270-$540 USD |
Risks
- Market fluctuations: Property prices can be volatile.
- Regulatory changes: New laws or taxes could impact returns.
Residential sales price index | Dubai Land Department
2
Stock market
Analysts forecast the UAE stock market will continue to grow strongly, with an average annual growth rate of around 3.2% to 5% through 2026. This will lead to a market capitalization of around $1.05 trillion by then.
Analysts forecast the UAE stock market will continue to grow strongly, with an average annual growth rate of around 3.2% to 5% through 2026. This will lead to a market capitalization of around $1.05 trillion by then.
Risks
- Market volatility: Economic and political factors may cause share prices to fluctuate.
3
Mutual funds and ETFs
Many mutual funds in the UAE have reported annualized returns ranging from 6% to 14%. ETFs also show good profitability. The long-term 5-year return for ETFs like iShares MSCI UAE ETF is about 17.75% - 20.28%. This makes them attractive for both short-term and long-term investors.
ETFs and mutual funds can be a great investment tool. It combines risk diversification and professional management.
Many mutual funds in the UAE have reported annualized returns ranging from 6% to 14%. ETFs also show good profitability. The long-term 5-year return for ETFs like iShares MSCI UAE ETF is about 17.75% - 20.28%. This makes them attractive for both short-term and long-term investors.
ETFs and mutual funds can be a great investment tool. It combines risk diversification and professional management.
Market Data
Fund type | Average annual return | Expense ratio |
Equity Mutual Funds | 8-12% | 0.5-1.5% |
Bond ETFs | 3-5% | 0.2-0.5% |
Risks
- Fees: Management fees can eat into profits.
- Market risk: Funds are subject to market volatility.
4
Gold and precious metals
Investing in gold and other precious metals has always been considered a safe option because it can protect your money from inflation. That's why it's been a popular choice for investors for many years.
Investing in gold and other precious metals has always been considered a safe option because it can protect your money from inflation. That's why it's been a popular choice for investors for many years.
Advantages
- Inflation hedge: Gold often retains value during inflationary periods.
- Liquidity: Precious metals can be easily bought and sold.
Risks
- Price volatility: Prices can fluctuate based on global demand and supply.
How to choose the best investment option in the UAE?
When it comes to choosing an investment, there are a few things you should consider:
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Tax & legal considerations for investors in the UAE
Understanding the tax and legal environment is crucial for a successful investment in the UAE. Before you dive in, here are some things to know:
- Corporate Tax: As of 2023, a 9% Corporate Tax applies to businesses with profits exceeding AED 375,000. Starting January 2025, a 15% minimum tax will be imposed on large multinational companies with global revenues over €750 million.
- Value Added Tax (VAT): A 5% VAT is levied on most goods and services.
- Free Zones: Companies in Free Zones often enjoy tax exemptions, but must comply with specific regulations.
- Property Transfer Fee: A 4% fee is charged on property transfers, typically split between.
Changes for investors in the UAE in 2025
In 2025, the UAE will make some major changes to Corporate Tax laws for investment funds. These changes are aimed at improving the investment scene, while ensuring that it is in line with international standards.
Cabinet Decision No. 34 of 2025 introduced important clarifications and adjustments to the tax treatment of Qualifying Investment Funds (QIFs) and Qualifying Limited Partnerships (QLPs). It aims to provide more flexible and investor-friendly regulations.
Cabinet Decision No. 34 of 2025 introduced important clarifications and adjustments to the tax treatment of Qualifying Investment Funds (QIFs) and Qualifying Limited Partnerships (QLPs). It aims to provide more flexible and investor-friendly regulations.
Tax exemptions for Qualifying Investment Funds (QIFs)
QIFs can now enjoy full exemptions from UAE Corporate Tax, provided they meet specific criteria:
- The fund must maintain diversified ownership, with no single investor exceeding permitted limits.
- No more than 10% of the fund's income may be derived from real estate assets; if this limit is exceeded, only 80% of the real estate income is subject to Corporate Tax.
Ownership violations grace period
The new rules allow some leeway after the first two years of a fund's existence. If there's a temporary lapse in ownership diversity, the fund can still keep its QIF status if it fixes the problem within 90 days.
Principle of individual accountability
In cases of ownership issues, only the investor responsible for the issue will face any tax implications. The fund itself can still maintain its QIF status, as long as all the other conditions are met.
Tax transparency for Qualifying Limited Partnerships (QLPs)
The law now allows QLPs to be treated as a tax-transparent entities under certain conditions. This means their income can be taxed on the individual level, not at the partnership level.
The partnership may not have legal personality, and the partners must agree on transparent treatment.
The partnership may not have legal personality, and the partners must agree on transparent treatment.
Corporate Tax registration for foreign investors
The new rules simplify the process for foreign investors to register to invest in a QIF or real estate investment trusts (REITs).
Foreign companies only need to register for Corporate Tax when they're distributing dividends, as long as they're distributing 80% of their income or more within nine months after the end of the financial year.
So, as you can see, the UAE has a lot of options when it comes to investing money and making a profit. With the recent changes in the laws, it's become both easier and safer to do so. When it comes to money, we're sure you know what you're doing. But if it's documents, visas, or any paperwork, just let us handle it. We can find the right jurisdiction for you and help you set up a company, get visas, and more.
Foreign companies only need to register for Corporate Tax when they're distributing dividends, as long as they're distributing 80% of their income or more within nine months after the end of the financial year.
So, as you can see, the UAE has a lot of options when it comes to investing money and making a profit. With the recent changes in the laws, it's become both easier and safer to do so. When it comes to money, we're sure you know what you're doing. But if it's documents, visas, or any paperwork, just let us handle it. We can find the right jurisdiction for you and help you set up a company, get visas, and more.
So you don't need to worry about that — just focus on what's important.
Investing FAQ
Yes, the average rental yields in Dubai range from 5% to 8%.
Yes, foreigners can invest in the UAE stock market. You’ll need a National Investor Number (NIN) to open a trading account.
In the UAE, the minimum investment can vary from AED 500 for the stock market to AED 1 million for real estate, with requirements typically including a UAE bank account, valid identification, etc.
Traditional savings investments include government bonds, bank deposits, gold and real estate.
Most investors do not pay income tax on their investments. Companies pay 9% Corporate Tax on profits over AED 375,000, large multinationals pay 15% minimum tax (from 2025).
Yes. Dubai is known for its high gold purity standards, competitive prices, and tax-free gold purchases for tourists.
It depends on your goals and risk tolerance.
Yes, non-residents can invest in stock market, real estate, gold, commodities and some companies.
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