They warned against the policy of "counterfeiting" and stressed "diversification"

Experts monitor 'safe investment' opportunities during the 'Corona' pandemic

  • Dubai provides an ideal environment for small and medium enterprises.

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  • Salah Al-Helyan.

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  • Fahad Al-Gergawi.

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Economists and finance experts have identified a number of sectors that are suitable for safe investment in light of the emerging Corona virus (Covid-19) pandemic, including e-commerce, real estate, and stocks of successful companies, as well as investment in sukuk, and minerals, especially gold, pointing out that investment in grains It could be beneficial to a number of local investors by investing in specialized funds.

They assured «Emirates Today» that reaching the criteria for implementing a “safe and successful investment map” in light of the Corona pandemic requires small investors to check the feasibility of the targeted investment areas, monitor market requirements during the current period, and focus on areas of investment that have sustainable characteristics. Continuity, as well as focus on innovative projects, and diversification in the investment portfolio.

They cautioned against proceeding with investment according to "imitation" or "herd" policies without studying, while avoiding borrowing operations without an account, and adhering to "rational borrowing."

They emphasized that the market downturn provided good prices for the purchase of real estate or stocks, calling for exploring opportunities in the regional and international markets, using the facilities provided by Dubai as a business platform that serves a third of the world's population.

E-Commerce

In detail, a member of the Board of Directors of the Abu Dhabi Chamber of Commerce and Industry, Hamad Al-Awadi, said that the Coronavirus pandemic has led to several variables and impacts in the economic field and markets, which has made many investors look more cautiously about investment areas that are characterized by safety and success, and how to implement well. For those investments.

He added that among the most prominent positive changes in the markets, as a result of the Corona pandemic, is the great emergence of e-commerce, which makes it one of the most nominated areas in multiple sectors, as dealers during the pandemic became more involved in the fields of e-commerce, and pushed a number of existing institutions to Partially or completely transform its activities into digital systems.

Al-Awadi explained that one of the most important tips for safe and successful investments during the pandemic is what is focused on reconsidering the cost of establishing projects, which is provided by the fields of e-commerce, as investors, especially the "big" among them, can benefit from business licenses in establishing e-commerce activities, whether through Social media pages, or through specialized sites, and work at a "zero" cost to rent companies' headquarters, in addition to saving the cost of labor, compared to traditional activities, which can be implemented in the areas of trade and supply of products, or in delivery services.

Facilities and incentives

Al-Awadi continued: “Investors can take advantage of the facilities and incentives granted to entrepreneurs in the current period, to start setting up their projects, which finally emerged through the tendency of some investors and emerging entrepreneurs to take advantage of these incentives during the pandemic period.”

Al-Awadi advised investors to search for projects that cope with the needs of the markets, and at the same time focus on innovative projects, as innovation in all sectors is currently one of the most important factors supporting the success of the project, with a good study of it and expectations of its development.

He stressed that diversification in the investment process is one of the important matters, but it needs fairly large investment liquidity, allowing investors to invest in stocks, sukuk, and metals, especially gold, pointing out that it is preferable not to invest in stocks more than one-third of the liquidity available for investment, even Investors can diversify appropriately.

Portfolio diversification

For his part, the economist and general manager of the "Truth Economic Consulting Company", Reda Musallam, said that reaching the criteria for implementing a safe and successful investment map in light of the circumstances and repercussions of the (Corona) pandemic requires intense keenness, especially from small investors, to scrutinize the feasibility of Targeted investment areas, monitoring market requirements during the current period, and focusing on investment areas that have the characteristics of sustainability and continuity during and after the pandemic.

Muslim stressed the need for investors to adhere to the criteria for diversification in their investment portfolio, if possible, while following up on investment changes and trends in global markets, and making use of what is appropriate and available in the local markets.

He added, "Among the most prominent recent trends during the pandemic is the focus on investing in minerals, especially gold, in addition to grains, which could be beneficial to a number of local investors by investing in specialized investment funds managed by experts."

Muslim pointed out that investing in money markets or stocks is appropriate, provided diversification in stocks and buying appropriate stocks for current times, as it is not logical to focus heavily on investing in shares in tourism sectors or aviation during the crisis, for example, while omitting The retail trade, food, or telecom services sector.

He said that the important and safe criteria for investment are also based on the need to seek the help of institutions with experience in the markets and areas targeted for investment, and even to undertake investment.

Standards and guidelines

In the same context, the economic and financial expert, Waddah Al-Taha, said that the repercussions of the Corona pandemic require investors to apply more careful standards and guidelines, in order to reach a safe and successful investment map under exceptional circumstances.

He added that the most important criteria and advice that investors should take is the intensive study of the feasibility of targeted investment, and linking investment fields with market variables and requirements, whether now or during the coming periods.

Al-Taha explained that safe and successful investment during the current period requires diversification, whenever possible, in the investment tools and portfolio, such as diversification in investment in the shares of different sectors, real estate funds, gold and minerals, with the need to maintain side financial liquidity to meet emergency needs, so that the investor does not have to Falling into mistakes in the forced sale of assets in a hasty and without study.

Hire experts

He added that the most important guidelines for investing in the current circumstances, especially for small investors, is the need to seek the help of experts and specialists, or specialized expertise houses in the targeted sectors, and not to proceed with investment according to the policies of “imitation” or “herd” without studying, while avoiding borrowing operations without Account, and commitment to what is called financing and "rational borrowing" that is commensurate with investment requirements, returns and available assets.

He stressed that investing in stocks, during the current period, requires scrutiny in the sectors to be entered into to invest in, and opportunities for growth, while studying data on target stock companies, their financial statements, recent and previous results, indebtedness, profitability levels, and dividends, with the need to mix with what It is called "sober stocks" that have strong policies, limited debt, and a good credit rating, and are not used to exposure to large and disparate variables in the performance of their shares in a worrying way.

He pointed out that diversification in investment tools should not neglect investors from any potential for stock drops in any circumstances, until balanced tools and portfolios that allow appropriate and somewhat safe borders are used, in addition to trying to search for areas that are characterized by innovation and meet specific market needs.

The most prominent investment opportunities

E-Commerce.

Grain trade.

Shares of successful companies.

Metals, especially gold.

Real estate.

Instruments.

Technology.

Avoid borrowing without being counted and sticking to "judicious borrowing".

Investing in capital markets is appropriate, provided that there is diversification.

Dubai Investment Development: We do not recommend reproducing traditional and duplicate ideas

Fahad Al-Gergawi, executive director of the Dubai Investment Development Corporation, one of the Dubai economic institutions, said that he does not advise investors to reproduce traditional or duplicate ideas, noting that sectors such as restaurants and hospitality have become overcrowded.

He added to "Emirates Today": "Investments in the coming period may need to focus on innovation and technology sectors," stressing the importance of young investors looking into indicators and analyzing them, knowing the markets, and conducting market research before starting a new investment.

Al-Gergawi added: “There are several sectors in Dubai that are not yet covered, and many opportunities are opened for entrepreneurs to enter them. Investors should also explore opportunities in the regional and international markets, using the facilities provided by Dubai as a business platform that serves one-third of the world's population.”

Al-Gergawi pointed out that there are great opportunities in the world, starting from Dubai, in the sectors of trade, logistics, digital technology, and agriculture.

He called on those wishing to enter the markets to conduct in-depth studies on the fields they wish to enter, stressing that Dubai is a pioneer in the entrepreneurship sector, providing an ideal environment for small and medium enterprises, as it has high dynamism and flexibility that made it the most attractive investment in the region and the world, and a platform for knowledge and business. .

Al-Gergawi said that Dubai is ahead of the world's cities in many aspects, as an ideal location for investment, pointing out that it provides a suitable environment for business in terms of legislation, opportunities, facilities and security, and that among the main indicators that the investor is currently interested in are the public health and occupational safety indicators, in which Dubai clearly excels. .

Al-Helyan: Owning shares of successful companies

The financial expert, Salah Al-Helian, said that the closure period witnessed by the countries of the world during the current year prompted individuals to follow different spending methods based on the principle of savings, indicating that the closure period taught individuals and families how to reduce spending on travel, buying, shopping, and eating in Outside, and reduced income-consuming occasions.

Al-Helyan stressed that the rationalization of spending has resulted in an abundance of funds for some who have not lost their jobs, or who have been able to withstand the pandemic crisis.

Al-Helyan believed that this abundance of funds can help these individuals to invest, indicating that investment does not necessarily mean possession of specific knowledge, as there are aspects of investment that do not require in-depth feasibility studies, such as buying real estate.

He said, "It is better for a person to do what he is able to give, or to work on increasing knowledge in an area where he already has passion."

Al-Halyan pointed out that the government provided and facilitated obtaining commercial licenses, and enabled many to start their business from home, such as those who cook home food or work in delivery services, pointing out that the market downturn, for example, has provided good prices to buy shares, as individuals can now Owning shares of stocks in successful companies through the money market, or dealing with portfolio-building companies.

He explained that some have knowledge that enables them to work in the field of consulting, as they can establish their business in this field as an expert, or obtain supplementary courses in a specific field through which services can be provided to people and remote consultations, stressing the importance of individuals learning marketing, and how to benefit from Opportunities, finding a place for the product they offer in the market.

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