Experts called for a diversified portfolio

10 areas that small investors benefit from during the global inflationary wave

• The diversified portfolio combines different investments, some of which can be liquidated in the event of a rapid need for liquidity.

  Photography: Ashok Verma

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Economists and financial experts have identified 10 main areas of investment that small investors can benefit from during the current global inflationary wave.

They explained to "Emirates Today" that these areas include food security, healthy nutrition centers, leading listed companies that have high financial solvency and high distributions, as well as companies announced for their inclusion, which will be listed in the future on the Dubai Financial Market.

They added that investing in gold, real estate, sovereign sukuk for countries and institutions, savings programs, retirement programs, bond returns, and artificial intelligence applications, are also important areas for investment, calling for the formation of a diversified investment portfolio that combines different investments with varying degrees of risk, and some of them can be liquidated in the event Need for quick cash.

Food security

In detail, the economist, Ahmed Al Darmaki, advised small investors, especially Emirati citizens, to invest in the field of food security through farms and related industries, noting that this area is one of the best areas of investment during the current inflationary wave, especially since the government gives priority to investing in it. And it works to provide facilities to investors and facilitate financing solutions.

Al-Darmaki said that the local market needs products related to food security, and investing in them supports their availability and offering them at reasonable prices to consumers, explaining that these products achieve a balance between local and imported production, and address any shortage of import so that any shortage of import is covered through production. The local market, which is characterized by high quality, especially in light of the turmoil in global supply chains and its direct effects in terms of the shortage of any commodity or the increase in its prices in global markets, and therefore local.

Healthy food

Al Darmaki stressed the importance of small investors’ orientation to invest in establishing healthy nutrition centers, pointing to the significant increase in demand for healthy food on the part of consumers after the “Corona” pandemic, which affected the lifestyle of many consumers.

He added that investing in such centers does not require large funding, and is suitable for small investors.

the future

Al Darmaki also advised investing in the areas of artificial intelligence, which are the most important pillars of the future, with their importance increasing dramatically during the coming period.

He pointed to the importance of investing in the gold trade during the global inflationary wave, especially that expectations indicate a continued rise in the prices of the yellow metal during the coming period, considering that the acquisition of gold is a permanent desire for individuals and groups, as well as countries, given the material and moral value that gold enjoys, especially in times of crisis.

diversity

For his part, the economist and banker, Amjad Nasr, advised investors to form a diversified investment portfolio that combines different investments with varying degrees of risk, some of which can be liquidated in the event of a rapid need for liquidity.

Nasr said that it is possible for this portfolio to combine investment in gold and investment in a number of companies listed in the financial markets, which enjoy high financial solvency, as well as companies that were announced for their inclusion, and which will be listed in the future on the Dubai Financial Market.

He pointed out the importance of focusing in general on companies that are characterized by high annual and semi-annual dividends and high profitability rates, and whose profits are expected to rise during the coming period, providing constant and periodic income for small investors.

instruments

Nasr pointed out that sovereign sukuks for countries and institutions also provide good investment opportunities during the inflationary wave, as well as savings and retirement programs.

He added that he sees good investment opportunities in the real estate sector in the UAE after consulting specialists in this field, especially that the UAE has become an investment oasis in the region and attracts investors permanently to it in various fields and nationalities, with great facilities in visas for various categories, and hosting important events and events such as the exhibition Expo 2020 Dubai, among others.

gold

In turn, the economist, Ali Al-Hamoudi, said that investing in gold is a safe haven, especially for small investors, especially in times of crisis, such as the inflationary crisis and the high prices that the world is currently witnessing.

Al-Hamoudi pointed out that gold prices witnessed increases during the last period, amid expectations that the yellow metal will maintain high price levels most of the time and continue to rise.

And he indicated that the monetary policy makers' conviction changed about considering the inflation wave to be seasonal and transitory, as a number of major central banks around the world, such as the US Federal Reserve and the Bank of England, announced that the inflation wave will continue this year.

chances

Al-Hamoudi pointed out that the capital markets in the country provide good opportunities for investment, as investment is rewarding for investors in the shares of the leading companies in particular, especially the shares of food companies, explaining that investment in these companies is not affected by any recession or depression in the world, after the emergence of Its great importance during the Corona pandemic.

bond

Al-Hamoudi stated that investing in bond returns, especially the American one, is a rewarding thing in light of the continuation of inflation for a relatively long period, and therefore central banks, especially the “US Fed”, will tend to raise the interest rate to reduce inflation, stressing the importance of diversifying investments and not focusing them on investment. One in times of crisis, in order to reduce the degree of risk.

The 10 domains

- Food security.

Health nutrition centers.

- Leading companies listed in the local capital markets.

The companies announced for their inclusion, which will be listed in the future in Dubai Financial.

- gold.

- Real estate.

Sovereign instruments of countries and institutions.

Savings and retirement programs.

Bond yields.

Artificial intelligence applications.

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