Mike Coady Talks 2024 Best Investment Ideas

As the UAE continues to solidify its position as a global economic hub, investors are keen to understand the best strategies for navigating the financial landscape in 2024.

UAE based Financial Advisor Mike Coady, recently spoke with arabianbusiness.com to share his tips on investing as an expat living and working in the region.

What UAE Assets Should You Be Investing In This Year?

Sectors such as technology, healthcare, and renewable energy are poised for ongoing and potential growth, from a global stocks perspective, according to Coady.

“The tech sector continues to thrive due to ongoing advancements in AI, cybersecurity, and cloud computing. Healthcare remains robust, driven by innovations in biotechnology and a global emphasis on health and wellness. Renewable energy is also gaining momentum as countries worldwide push for sustainable and environmentally friendly energy sources,”

However, when considering asset allocation for 2024, Coady emphasised the importance of diversification.

The Future Of Real Estate In The UAE

While real estate continues to be a strong choice, especially in prime locations within Dubai and Abu Dhabi, government and corporate bonds provide stability and steady income, while commodities like gold are expected to retain their value as a hedge against inflation and economic uncertainty.

However, the UAE real estate market is expected to undergo changes in the coming year, as Coady commented:

“Naturally, there are those investors that see a correction at some point and of course there are those that have the continued confidence that Dubai, and UAE for example, will continue to grow in price as demand continues to be strong. That said, like any investment, real estate will have its ups and downs, but I do believe that most investors and expatriates would believe that the UAE has an incredible future and in many cases in undervalued against some of its global city counterparts.”

Global elections, economic policies, and geopolitics are set to influence investment returns for Expats in the UAE in 2024.

Discussing the many emerging investment trends, Coady called on investors to display caution.

“These digital assets [Cryptocurrencies, blockchain technologies, etc.]  have gained significant traction and offer high potential for returns, although they come with significant volatility. Additionally, sectors like space exploration and vertical farming are attracting investment and could outperform traditional expectations. These innovative fields represent the future of technology and sustainability, making them intriguing options for forward-thinking investors.”

There are other factors that could impact investment returns in 2024, such as a number of developed countries holding elections, added Coady.

“This year is expected to be a record-breaking year for elections globally, with more than 50 countries heading to the polls. Some key developed countries with upcoming elections include the United States, various European Union member states, and other nations such as Japan and Australia,” he said.

Other factors to consider – Coady said – include:

• Economic Policies: Changes in interest rates, tax policies, and government spending can influence market performance.‍
• Geopolitical Events: Political instability, trade tensions, and international relations can affect global markets.‍
• Technological Advancements: Innovations and disruptions in technology can create new opportunities and risks.‍
• Environmental Factors: Climate change and environmental regulations can impact industries and investment choices.‍
• Consumer Trends: Shifts in consumer behaviour and preferences can drive the success or failure of various sectors.

Look For Investments In Emerging Markets, Cryptocurrencies, Tech Startups

For those willing to take on more risk, Coady suggested considering investments in emerging markets, cryptocurrencies, and tech startups.

“Investing in growth stocks, emerging markets, and alternative assets like cryptocurrencies can offer high potential returns. To hedge against inflation and currency fluctuations, consider investments in commodities such as gold, real estate, and inflation-protected securities (TIPS). Diversifying across different asset classes and geographies can also help mitigate risks and protect your overall portfolio. Not everybody likes the approach, but diversification is always a sensible must.”

Coady also suggested that investing in international real estate, especially in popular city centres such as Dubai and Abu Dhabi, can be profitable. And he pointed out that renewable energy, technology, and healthcare sectors in developed markets offer strong investment opportunities due to their ongoing innovations.

“The S&P 500 has been outperforming the MSCI World Index for an unprecedented duration, marking the longest period of outperformance in history. This trend began around 2009, following the financial crisis, and has continued through to the present day. This is the longest outperformance in history and from a data perspective, may start to signal the importance of global diversification,” he said.

Coady's Tips For Expats Planning To Invest In The UAE

Looking ahead to the remainder of 2024, the Skybound Wealth Management CEO gave the following tips when putting together an investment plan:

• Set clear goals: Define your short, medium and long-term financial objectives. By setting clear goals, you will better understand the goals needed to achieve targets.
• Diversify: Spread your investments across various asset classes to reduce risk.
• Stay informed: Keep up with market trends, economic news, and investment opportunities.
• Risk management: Understand your risk tolerance and adjust your portfolio accordingly.
• Seek professional advice: Consult with a good and reputable financial advisor to tailor a strategy that aligns with your goals and risk profile.

“Regularly review and adjust your investment strategy to align with changing market conditions and personal goals. Always prioritise financial education to make informed and able to be more confident in your investment decisions,” he concluded.

The Importance Of Consulting A Financial Advisor In The UAE

In today's ever-changing financial environment, consulting with a financial advisor in the UAE is essential for developing a holistic investment plan that considers both current trends and your future aspirations. An experienced advisor can ensure your strategy is comprehensive and diversified, optimising returns while mitigating risks. They will also provide guidance on tax-efficient structuring, crucial for expats with obligations in multiple jurisdictions.

Skybound Wealth Management’s team of professional advisors are on hand to ensure your investment plan is robust, adaptable, and aligned with your financial objectives, both today and in the future, and as such playing a significant role in you achieving financial success.