The best 20 stocks for first time investors in the UAE

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30-May-2021 12:38:43
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20 best stocks in UAE

Investing in stocks can be a great way to grow your wealth.

In the last year alone, millions of first-time investors  started investing during the pandemic. If you are still sitting on the sidelines, wondering if you should also invest, then look no further. 

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Source: Bloomberg.com

Looking to invest in the best stocks in UAE?

With thousands of stocks to choose from, finding the right stocks to invest in can be challenging. So where do you start?  

This post aims to give you a list of the top 20 stocks to invest in as a beginner.

At the outset, you might be better off investing in large multinational companies, which are market leaders in their respective field. Such companies are also known as Blue Chip Stocks.

These companies usually are common household names and have a market cap of 10+ Billion US Dollars. They have a sound track record of growth and profits. They also have little or no debt on their balance sheet.

Best 20 stocks for first time investors in the UAE

Best stocks in UAE

Stocks you should avoid as a beginner

  1. Fast Growing stocks - Up coming and Volatile stocks Like Tesla, Zoom etc...
  2. Speculative/Meme stocks - Like Gamestop, AMC, BlackBerry Ltd etc...
  3. Penny Stocks - Small Unknown companies 
  4. Business Models you don't understand - Just because your friends or colleagues are investing or suggesting some unfamiliar companies with a complex business model, don't invest in them.
  5. Stock IPO's - Stocks that are listing on the exchange for the first time. Investing in such newly formed public companies can be rewarding and very risky nonetheless. Not an ideal investment for beginners
  6. In addition to high risk/volatility stocks, it would be a very good idea to avoid CFD or leverage as a beginner. Even seasoned investors tend to lose money with CFD and leverage, so please stay away from it.

How to invest in Best stocks in UAE?

To invest in stocks in the UAE you would need a Trading account. The following are some of the trading accounts you can choose from;

  • Saxo Bank - DIY and Advisor led
  • Ardan Investment Trust - DIY and Advisor led
  • Stockal - DIY
  • Interactive Brokers - DIY

Summary and Expert Help

Although volatile, stock market investment can help you grow wealth faster in the long run. As a beginner it would be useful to invest in a portfolio of blue-chip stocks for stable growth and less volatility.

Even if these stock go down in value during a correction or bear market, they tend to recover much faster than mid cap or small cap stocks. 

As an Independent Financial Advisor, I can help you create a Holistic Financial Plan and a Robust Asset Allocation Strategy. 

We can choose from a wide range of of Stocks, Bonds, ETFs and Mutual funds to suit your growth expectations and risk appetite. 

I can also help you regularly review your portfolio and rebalance when necessary. 

Click the link below to arrange a free consultation and start investing in stocks.

 

Click Here to Schedule an Online Meeting

 

About Damodhar Mata

Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours...

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Disclaimer

The above content is intended to be used and must be used for information and education purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances.

You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Investment Warnings

We would like to draw your attention to the following important investment warnings.

  • The value of shares and investments and the income derived from them can go down as well as up;
  • Investors may not get back the amount they invested 
  • Past performance is not a guide to future performance.

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