Financial Advice in Dubai: Some Basic Suggestions and Guidelines
Dubai is by far one of the most economically lucrative cities on the planet. It, therefore, stands to reason that a growing number of high earners, entrepreneurs and capitalists have flocked towards the promising region. However, financial planning is key to a more rewarding life experience if you wish to ultimately enjoy a higher return on your expat status. Let us take a look at a handful of pertinent suggestions that should be embraced from the very beginning. Here are our basic suggestions on financial advice in Dubai.
Defining Your Fiscal Goals
As with any type of business venture, try to clarify your short, medium and long-term goals as soon as possible. This will provide you with a clear fiscal “road map” while simultaneously enabling you to gauge your success as the venture continues to develop. However, adopt a pragmatic as opposed to an idealistic approach. Be realistic with your targets and appreciate the fact that pitfalls may very well occur along the way.
Adhering to the Appropriate Rules and Regulations
Some of the fiscal and tax-related laws within Dubai are notably different when compared to those associated with other nations such as the United Kingdom. For example, Dubai is generally a tax-free country for the majority of those who work and legally reside within its confines. There can nonetheless be instances when you will be required to pay taxes to local or home governments. This is why obtaining the advice offered by trained professionals is always prudent.
Leveraging the Expertise of a Financial Planner
As mentioned in the previous section, most individuals who wish to start a life as an expat will benefit from the bespoke knowledge base provided by a qualified financial advisor in Dubai. These experts will offer several distinct advantages. They will mould their services around the objectives in question. They are capable of providing you with a flexible framework around which you can begin to build your fiscal goals from the ground up. Advisers also examine any relevant taxation laws in order to develop an effective long-term strategy that will offer you benefits that might not otherwise be possible.
However, let us stress that not all financial advisors are created equally and don’t necessarily give the same quality of expat financial advice in Dubai or anywhere. It is important to choose both a reputable adviser and firm so that you can effectively avoid any unexpected problems in the future. Here are some hallmarks of a trustworthy entity:
- No hidden fees charged.
- The adviser possesses the necessary top-level qualifications.
- You are provided with excellent levels of customer service and all procedures are explained in a clear manner.
The Potential Power of Offshore Banking Solutions
One of the lesser-known suggestions often touted by advisers is commonly referred to as the “ABC” rule. If you arrive from country A and you currently reside in country B, you should utilise the financial institutions found within country C. Why is this the case?
Offshore banking is mainly used to avoid potentially hefty obligations that you might otherwise be forced to satisfy within your current country of residence or domicile, now or in the future. However, it is important to mention here that we are not referring to any type of fraud or similarly dubious fiscal activity. This method is simply a way to reduce what you might otherwise have to pay. Also, let us mention that offshore banking is an excellent way to supersede any local Shariah issues.
Proper Income Management Techniques
Anyone who wishes to install fiscal objectives within Dubai should always adopt a conservative approach in regard to income management. While this could very well equate to “personal management 101”, there are several metrics that nonetheless need to be highlighted:
- Never spend beyond your means.
- Do not apply for a loan and credit cards unless it is absolutely necessary.
- Proactively monitor your family balance sheets to accurately account for personal monthly profit as well as outgoing expenses.
- Maintain a viable source of liquidity in the event that sudden expenses arise.
- Allocate a certain amount of money each month for long-term capital growth.
These strategies will help to place your Dubai venture on the fast track to longitudinal success. Financial advice in Dubai is much easier when you are held accountable – otherwise, you will easily get caught up with Dubai life!
Accurately Forecasting Cash Flow
Cash flow forecasting is another core component of family planning success. Once again, this involves the ability to monitor your operations within a real-time scenario. You will be able to appreciate specific patterns over time in order to better predict what the future may have in store. This method will also help you to account for any future obligations while increasing levels of budget efficiency; two key factors which will dictate success or failure outcomes.
Investments and Assets
Many Dubai business expats will eventually choose to reinvest a portion of their surplus income into specific asset classes to accrue a “nest egg” for the future. Some common options include:
- Government bonds and treasuries.
While these could very well represent self-traded purchases based on your personal preferences, it is always wise to speak with a financial advisor or wealth management specialist to ensure your financial advice in Dubai is soundproof. These individuals are often capable of presenting novel opportunities and methodologies that would otherwise be difficult to discover.
Dubai is indeed one of the most fiscally lucrative regions on the planet and it represents an astounding opportunity if the correct strategies are leveraged. Please keep in mind that this is only a general overview of some powerful options at your disposal. It is always prudent to speak with a professional financial advisor in Dubai in order to learn more about your options as well as how you can optimise the potential for long-term success.
About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), and a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
To learn how to choose a great financial adviser, download our free guide.
Blog published by Mike Coady.