Options to invest small money amounts in UAE

by | Sep 6, 2018 | Financial Featured

Whether you are a citizen or a resident in the UAE, you may want to earn additional income by investing a small amount of money to achieve your life goals, or to secure an income after retirement.

If you earn less than 10,000 AED a month, it means that you can save 1,000 AED or less every month. No matter how much your monthly savings are, even if it is 100, 250 or 1000 AED, you can still invest those sums. The point here is to invest your money.

So what are the options for investing small amounts of money? The answer is in this article.

However, there is an important point you should keep in mind. If you have only a small amount to invest for retirement, and you do not have any detailed information about investment, try to avoid complex options due to their high risk. In addition, investing in those options requires solid investment knowledge and experience.

Here are some of the best ways to invest small amount of money in the UAE:

Investing in Stocks:

Stocks are one of the most popular investment options among small-budget investors. They are affordable and you can buy your favorite stock for less than 100 AED.

It is best to buy stocks from at least five or six companies, to create a diverse portfolio.

You should also use discount broker services when you buy stocks. You can do this by opening an account with an online discount brokerage company. The second option is to buy your stocks directly from the company if you want to save brokerage fees.


Exchange traded funds can be purchased at a low cost through a broker, just like stocks. The investor can buy any number of stocks. Exchange traded funds are funds collected from a group of people to create a diverse portfolio that includes stocks, bonds and commodities. They are traded like stocks, and generate good profit.

Mutual Funds:

If you do not have enough time to conduct the research needed to determine which stocks, exchange traded funds or other small investment options to invest in; you can invest in mutual funds.

In that option you can take advantage of the experience of the mutual fund manager, who will conduct the research on your behalf and help you to choose the best securities, bonds or stocks. Moreover, you do not need to invest huge amounts of dirhams, as mutual funds usually produce good returns on investment, just like stocks and ETFs.


This precious metal is an excellent safe asset to keep your wealth in. It is recommended to invest 5% of your money in gold to avoid the depreciation of your savings that usually occurs due to inflation.

Gold is a popular asset in various portfolios. It is used as a hedge against inflation. Investing 5% of your savings in gold is a relatively safe option that adds diversity to your portfolio.

Gold is a safe haven and therefore and a good addition to other traditional investments options.

Finally, investing your money in the proposed options mentioned above does not mean that your job is done and you should wait for your money to increase. You must continue to develop your investments. Try to save and invest more money. These investments must be made regularly according to systematic investment plans on monthly/annual basis.

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