How Forex Trading in The UAE Has Evolved

How Forex Trading in The UAE Has Evolved

How Forex Trading in The UAE Has Evolved
Forex trading is a way of working with the currency fluctuations around the world to try and predict changes and make a profit. In the Middle East, it has become a popular way for people to make money, both as individuals and as businesses. Forex is fairly simple in many ways – although it can take a lot of research and study of worldwide news to master – it is simply about trying to buy a currency at a low price then trade it when it is selling at a higher rate. In the UAE, forex has had quite a significant evolution from being something that was used only by companies, to something that is now used by lots of people as a way to invest.
When Forex Began to Grow in the GCC?
Traditionally, the Middle East has always been more concerned with commodities. Primarily because oil is such a big factor in our economy. However, since around 2008, foreign exchange has become more and more appealing to investors in the GCC, and in 2013, the region made up 8% of the world’s forex trade on its own. 8% may not sound like a lot, but the growth is pretty significant, and does suggest that people in the Middle East began to see forex trade as something worth getting into in the past few years.
The Rise of Forex
Forex trading has always been a reasonably good way to optimise the value of capital. As currencies change in value against each other all of the time, there is the opportunity to make a profit by buying and selling one against another. However, this was always something only banks and major corporations were able to do before the rise of mainstream internet. Now there are some great online marketplaces and platforms where it is easy to trade currencies online. With these, people became able to start trading as individuals, and by learning about how currencies are performing around the world they are also able to make money off of currencies other than the ones they use every day. As a trader in the UAE it is easy to make money from the fluctuations between currencies like the Euro and the US dollar, or the pound and yen. Since this became not only possible, but easily accessible, more and more traders began to participate in the GCC.
Forex Trading Since 2008 in Dubai
2007 through to 2008 saw a lot of economic changes all over the world, with most countries going into a form of recession or crisis in the wake of the market problems in the USA. When this occurred, a lot of investors looked for safe places to keep their money, and precious metals became a very popular investment, pushing up their prices. However, this was really the point where people in the UAE began to think about forex as a good investment. When there is uncertainty in the markets, currencies can change quite rapidly, and that is what forex investors generally profit from.
It is interesting to see how people in Dubai have become more accustomed to, and interested in, forex as a way of trading and have begun to see foreign currencies as interesting assets in the past decade. It seems that commodities will always be important here, however forex is really beginning to become significant to business owners and private investors.