An increasing number of investors seem to be prioritizing Middle East investing decisions. And they’re not to blame considering this regions offers a host of investment opportunities.Going back in history, the Middle East has shone as an investment beacon thanks to its extensive energy resources and vast population.
But this appears to be changing over time, as economies try to minimize their reliance on oil and instead cross bold, new frontiers relating to cryptocurrency, clean energy sources and others. Below are a few things you should know before investing in this part of the world.
Purchase Exchange-Traded Funds
While the Middle Eastern economies and financial markets have immensely diversified in the last couple of years, the most effective way to gain traction in the region is by purchasing exchange-traded funds (ETFs). That’s partly because the funds reflect the new-found diversity of the Middle Eastern economies, covering thriving, growth sectors like financials, telecommunications and industry.
ETFs offer risk-averse or novice investors the ideal way to embrace the Middle Eastern markets since they allow traders to assume ownership of any underlying assets or financial instruments. This offers the much-needed peace of mind, which is essential for some given the emerging nature of markets such as the UAE.
Middle East Investment Risks
There exist some risks that are historically synonymous with your investment decision in the Middle East. Most of these risks are associated with a lack of diversity within the economy but can be mitigated through the targeting of more progressive countries that have embraced new revenue streams during the last 10 years or more.
Moreover, the Middle Eastern markets are increasingly vulnerable to the same challenges that continue to threaten established economies in the West. As the UAE and Qatar continue to become central hubs for crypto innovation and high value ICOs (Initial Coin Offerings), for instance, fiscal regulators are warning of the associated dangers of this burgeon market.
All in all, researching one or two things is always essential before making the bold decision of taking up highly attractive Middle East investing opportunities.