UAE women investing to beat inflation

The number of women investing in savings schemes in the UAE grew by a 51% last year over 2021, new figures show.

According to industry experts, sharply rising household prices are encouraging women to invest in inflation-beating saving options across a diversified asset portfolio.

Many of these women investors are turning to micro-investing apps, which make it easy and affordable for individuals to invest small amounts of money regularly, promoting a saving culture among a wider population in the country.

“The number of women investors in the UAE is growing at an unprecedented rate,” said Shivansh Rachit, founder and chief operating officer of Hedge & Sachs, a UAE-based investment and asset management company.

He told the Arabian Business website: “Women, in particular, are breaking down barriers and becoming more involved in managing their wealth.”

His view is backed up by figures from the Dubai Land Department (DLD), which shows that the number of women investing in real estate grew by 50.7% in 2022 compared to the previous year.

Household spending in the UAE is expected to grow by 4% in 2023, driven by rising rental prices, soaring domestic fuel prices and strong demand pressures on products across categories.

“These factors have continued to exert pressure on prices in the current year as well, emphasising the need for investors to hedge their investments against inflation,” Rachit said.

He added that one way to mitigate the impact of inflation on investments is through diversification.

“Diversified investments can provide a hedge against inflation by allocating funds across different asset classes, such as equities, bonds, commodities and real estate. This way, you can protect your wealth from the eroding effects of inflation and benefit from the growth potential of different investment markets,” Rachit said.

By spreading their investments across various asset classes, investors can also reduce their exposure to market risks and inflation, potentially enhancing their long-term returns, said the investment company executive, which offers global financial services to individual and institutional investors in the UAE.

Rachit said the emergence of micro-investing apps is adding to the rising saving culture among women and also a wider population in the UAE.

“Micro-investing platforms offer numerous investment options, such as stocks, bonds, and ETFs, to suit different investment objectives and risk appetites.

“This trend is particularly attractive to younger generations, who are often more comfortable with digital technology and seek low-cost, easy-to-use investment solutions,” Rachit added.


Corporate Tax exemptions announced

UAE Ministry of Finance has announced which organisations are exempt from registering for Corporate Tax.

Those exempt include government entities, government-controlled entities, extractive businesses and non-extractive natural resource businesses that meet the necessary conditions under the Corporate Tax Law.

In addition, non-resident people who only earn UAE-sourced income and do not have a permanent establishment in the UAE are exempt from registering for Corporate Tax.

The Ministry of Finance said the decision is in line with international best practices, as entities exempt from Corporate Tax such as the federal government, UAE government departments and authorities, other public institutions, and other categories referred to above are excepted from tax registration because they are not subject to tax.

As long as these entities continue to meet the exemption conditions specified in the relevant articles of the Decree-Law, there is no need for them to register with the Federal Tax Authority, the ministry said.

The authority said that all Cabinet Decisions and Ministerial Decisions issued relating to the Corporate Tax Law are available on the Ministry of Finance’s website.

UAE officially issued a federal decree-law on corporate tax at a 9% rate for taxable business profits exceeding AED375,000 (£82,000). The new law was announced in December 2022 and is set to come into effect for financial years starting June 1, 2023.