Page Summary
This guide helps users to find the best alternative investment platforms in UAE. The global financial market decline and rising inflation increased popularity of alternative investments in UAE. These type of investments are great for portfolio diversification, high potential returns, and lower dependency on traditional markets (stocks, forex, crypto, and bonds markets). The growing number of transparent and scam online brokers that offer access to alternative investment options, makes it hard for investors in the UAE to choose the best suited options for their financial goals.
Alternative investments are different from traditional securities listed on exchanges. Passing on individual research and comparison of providers can cause picking a platform with high minimum investment, low projected returns, limited range of products and lack of buy-back options.
This guide assesses 15 alternative investment platforms accepting UAE clients. To help users make an informed decision, the best alternative investment platforms in UAE are ranked, reviewed and compared considering types of investments, investment minimum, accreditation requirements, fees, reputation, and support.
Top 6 Alternative Investment Platforms in UAE
- Emirates Investment Bank – Best for Hedge Fund Investments
- InstaVal – Top For Startup Investments in UAE
- Beehive – Ideal For Debt Investments
- Wahed – Optimal For Halal Investments
- SmartCrowd – Best For Real Estate Crowdfunding
The 6 Best Alternative Investment Platforms in UAE Reviewed
The best alternative investment platforms in UAE are reviewed below, including key features.
1. Emirates Investment Bank – Best for Hedge Fund Investments
Emirates Investment Bank is a Dubai-based investment bank founded in 1976. It provides access to alternative investment solutions including real estate, hedge funds and private equity. The bank has a proprietary trading platform which requires a minimum investment of 10,000 AED. Emirates Investment Bank accepts accredited and non-accredited investors.
Key Features of Emirates Investment Bank are listed below:
Key features
- Minimum investment: 10,000 AED
- Launched: 1976
- Projected Returns: Varies per investment
- Auto-Invest: No
- Open to Borrowers: Yes
- Open to Investors: Yes
- Secondary Market: No
- Public Statistics: Yes
- Buyback Guarantee: No
- Mobile Application: Yes
- Products/markets offered: Real estate, hedge funds and private equity
2. InstaVal – Best For Startup Investing in UAE
InstaVal is a Dubai-based startup investing platform founded in 2019. The platform allows accredited and non-accredited investors to invest in pre-seed stage startup companies from 1 AED. All investments are denominated in AED. InstaVal offers high average returns of 9%, which is higher than most other alternative investment platforms. The platform operates in 50+ geographies and 40+ industries.
Key Features of InstaVal are listed below:
Key features
- Minimum investment: 1 AED
- Launched: 2019
- Projected Returns: 9%
- Auto-Invest: No
- Open to Borrowers: Yes
- Open to Investors: Yes
- Secondary Market: No
- Public Statistics: No
- Buyback Guarantee: No
- Mobile Application: Yes
- Products/Markets Offered: Thoroughly curated startup businesses
3. Beehive – Best For Debt Investing
Beehive is a DFSA-regulated peer-to-peer lending platform, founded in 2014. Beehive allows investors (accredited and non-accredited) to invest in debt of individuals and small businesses in the UAE. All investments are denominated in AED. The minimum investment required at Beehive is 100 AED. The platform has a great reputation among investors, with a rating of 4,4/5 on TrustPilot.
Key Features of Beehive are listed below:
Key features
- Minimum investment: 100 AED
- Launched: 2014
- Projected Returns: 10%+
- Auto-Invest: No
- Open to Borrowers: Yes
- Open to Investors: Yes
- Secondary Market: No
- Public Statistics: Yes
- Buyback Guarantee: Yes
- Mobile Application: No
- Products/Markets Offered: UAE-based businesses
4. Wahed – Best For Halal Investments
Wahed is a halal and Sharia-compliant investment platform founded in 2017. Wahed allows investors (accredited and non-accredited) to automatically invest in halal products though MPT (Modern Portfolio Theory) and risk levels set-up. Wahed’s financial experts act as money managers (robo-advisors) and handle investments on behalf of their clients. The platform has over 300,000 users and an average return of 6,2% since inception.
Key Features of Wahed are listed below:
Key features
- Minimum investment: $100
- Launched: 2017
- Projected Returns: 6,2%
- Auto-Invest: Yes
- Open to Borrowers: No
- Open to Investors: Yes
- Secondary Market: No
- Public Statistics: Yes
- Buyback Guarantee: No
- Mobile Application: Yes
- Products/Markets Offered: Halal and Shariah-compliant international (non-US) equities across developed and emerging markets
5. SmartCrowd – Best For Real Estate Crowdfunding
SmartCrowd is a Dubai-based crowdfunding platform founded in 2017. SmartCrowd allows users to invest in a variety of UAE-based real estates. The platform accepts accredited and not accredited investors. The minimum investment required is 500 AED. SmartCrowd has an average return on investment of 9,08% per year. SmartCrowd has over 30,000 users and more than 70 funded properties.
Key Features of SmartCrowd are listed below:
Key features
- Minimum investment: 500 AED
- Launched: 2017
- Projected Returns: 9,08%
- Auto-Invest: Yes
- Open to Borrowers: No
- Open to Investors: Yes
- Secondary Market: No
- Public Statistics: No
- Buyback Guarantee: No
- Mobile Application: No
- Products/Markets Offered: UAE real estate projects
How To Choose The Right Alternative Platform in UAE
Tips that help users choose the right alternative investment platform in the UAE are listed below..
- Investment Opportunities. Platforms with a wider range of investment products should be preferred. They allow diversification flexibility and increase chances for profitability. Investment opportunities should meet the goals, risk tolerance, and financial goals of the investor.
- Costs. Platforms with lower overall costs should be preferred. They allow better cost efficiency and increase profitability.
- Reputation. Investors should only sign-up with reputable platforms. Reputation of alternative investment platforms is defined through the number of users and positive reviews on sites like Trustpilot.
- Transparency. Platforms with transparent information should be preferred. Transparency increases investors safety and helps maximizing their profits.
- Regulation. Alternative investment platforms licensed by tier-one financial regulators should be preferred. They increase investors safety by guaranteeing that the platform follows certain industry standards.
- Customer Support. Platforms that offer responsive and professional support should be considered. Great support minimized loss of money to common mistakes that could be avoided.
- Minimum Investment Requirements. Platforms with minimum investment requirements that match investors budgets should be preferred.
Top Alternative Investment Platforms Compared
Key features of the highest rated alternative investment platforms in UAE are compared in the table below.
| Platform | Emirates Investment Bank | InstaVal | Beehive | Wahed | SmartCrowd |
| Min. Investment: | 10,000 AED | 1 AED | 100 AED | $100 | 500 AED |
| Launched: | 1976 | 2019 | 2014 | 2017 | 2017 |
| Projected Returns: | Varies per Investment | 9% | 9%+ | 6,2% | 9,08% |
| Auto-invest: | No | No | No | Yes | Yes |
| Open to Borrowers: | Yes | Yes | Yes | No | No |
| Open to Investors: | Yes | Yes | Yes | Yes | Yes |
| Secondary market: | No | No | No | No | No |
| Public Statistics: | Yes | No | Yes | Yes | No |
| Buyback Guarantee: | No | No | Yes | No | No |
| Mobile Application: | Yes | Yes | No | No | No |
| Number of users: | Unknown | 500+ | 15,000+ | 300,000+ | 30,000+ |
How are Traditional and Alternative Investments Different?
Traditional investments like stocks, ETFs, and fixed-income products are traded on stock exchanges. In contrast, alternative investments are unlisted assets that are traded on specific platforms with less transparency and regulatory oversight. Alternative investments typically offer higher returns in return for the higher risks taken by investors.
Types of Alternative Investments
Alternative investments are divided into multiple types, including real estate, precious metals, and others. Below, we have listed the most common alternative investments among UAE investors.
- Hedge Funds
- Real Estate Crowdfunding
- Crowd Lending
- Precious metals (gold, silver, and platinum)
- Cryptocurrencies (Bitcoin, Litecoin, and Ethereum)
- Startups (crowdfunding)
- Collectibles like art pieces, jewelry, stickers
What are the Benefits of Alternative Investments Compared to Traditional Investments?
The benefits of alternative investments compared to traditional investments are listed below.
- Portfolio Diversification. Alternative investments allow portfolio diversification. They lower the portfolio correlation with traditional markets and help decrease volatility in times of economic downturns.
- Higher Return Potential. Certain alternative investments including hedge funds and private real estate deals offer higher returns compared to traditional investments. It is important to understand that higher returns come with higher risk of losing money.
- Specialized Investment Strategies. Alternative investments allow investors to use specialized investment strategies that typically aren’t available through traditional investing.
- Protection Against Inflation. Certain alternative investments including precious metals and real estates can be used to hedge against inflation. Hedging inflation helps users to protect their portfolio against rising prices.
- Investment Portfolio Customization. Alternative investments allow investors the opportunity to fully customize their investment portfolio according to their own risk appetite and financial goals.
What Are The Disadvantages of Alternative Investments?
Disadvantages of alternative investments are listed below.
- Long Lock-Up Periods: Alternative investments are illiquid and it is possible that the investors may not be able to regain his investment for a longer time period.
- Higher fees: Alternative investments often come with higher expense ratios compared to traditional investments. Alternative investment platforms also charge performance and other fees making this investment more costly that traditional investments.
- Lack of regulation: Certain alternative investments are not regulated at the same level as traditional investments. This can increase the risk of losing money on fraud.
- Higher risk of loss: Higher potential profits with alternative investments, come with higher risk of losing money.
- Limited Access: Some alternative investments with the most promising deals are reserved for certain accredited investors.
Conclusion
Due to the increasing number of fintechs in UAE offering different services and conditions, it is hard to find the ideal option for individual needs. Researching and analyzing offers can be stressful and requires time and knowledge.
This guide does the hard work for you by comparing and evaluating the top choices for different types of traders and trading goals. The results of our analysis of the best alternative investment platforms in UAE are wrapped up in the table below.
| RANK | BROKER | PLATFORM SCORE | BEST FOR | WEBSITE |
|---|---|---|---|---|
| #1 | Emirates Investment Bank | 4,9/5 | Hedge Fund Investments | Official website |
| #2 | InstaVal | 4,9/5 | Startup Investments | Official website |
| #3 | Beehive | 4,9/5 | Debt Investments | Official website |
| #4 | Wahed | 4,5/5 | Halal Investments | Official website |
| #5 | SmartCrowd | 4,9/5 | Real Estate Crowdfunding | Official website |
FAQ
What are the main benefits of alternative investments?
Alternative investments do not correlate with traditional markets (stock, crypto bonds markets), which makes them great for portfolio diversification and mitigation of risk.
What are the average annual return on alternative investments in UAE?
The average annual returns on alternative investments in UAE are around 9% over the last 10 years.
What are the most common used alternative investments in UAE?
The most common alternative investments in UAE include venture capital, private equity, real estate, art & collectibles and infrastructure investments.
What are the most common risks of alternative investments?
The most common risks of alternative investments include liquidity risks (alternative investments tend to have lower liquidity), market volatility risk ( some alternative investment markets are volatile) and valuation risks.
How are alternative investments regulated in the UAE?
The regulation of alternative investments in the UAE varies depending on the type of investment. The SCA regulates hedge funds, private equity, cryptocurrencies and the Real Estate Regulatory Authority (RERA) regulates real estate investments.
What types of investors are alternative investment best suited for?
Alternative investment are most common for high-net-worth individuals (alternative investments regularly require a high minimum investment), institutional investors (often prioritize long-term investment and can therefore invest in illiquid assets like private equity or real estate), sophisticated investors (with knowledge of complex asset classes like vine and collectibles) and investors looking for higher returns ( alternative investments have the potential to generate high returns on investments).
Are alternative investments a good idea for beginners?
Because of their high volatility, and special knowledge requirements, alternative investments are not recommendable for beginners.
Are alternative investments legal in the UAE?
Yes, alternative investments are regulated by the SCA and are legal investments.
Disclaimer
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Stefan Grasic is the owner of Business24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active stock, CFD, crypto and general investment researcher, advising blockchain companies such as Blockbird, GoCrypto, Hive Terminal at their start up level.