The law governing financial crimes right across the UAE has been tightened up with the establishment of the Dubai Economic Security Centre. This body, based in Dubai, has been set up with the express aim to root out fraud, embezzlement and money laundering, with tough fines for those that transgress the rules.
In a statement after the centre was established by Sheikh Mohammed bin Rashid Al Maktoum last year, the Government of Dubai explained: “The centre is tasked with the development and publication of reports and periodic statistics on the financial and economic status of the emirate, participation in councils and committees focused on Dubai’s financial and economic affairs, following up on criminal proceedings that may impact the emirate’s economy, and combating activities and practices that may have a detrimental impact on the emirate’s economy and its resources.”
This is all part of an attempt to build on the UAE’s strong position as a global financial power – giving investors confidence that the sector is robust.
This, quite rightly, should give people an extra layer of confidence when it comes to making their investments. But, you shouldn’t leave it all to the authorities. While they are working to tackle crime, they won’t guarantee that the money you invest will be ‘safe’ in every sense of the word. It’s important, therefore, not to be complacent and to take the following steps yourself…
Weigh up the risk and your budget
Every investment carries a risk at some level. It’s important to realise this and understand the level of risk that you would be happy with. There are two things you need to know as part of this. Firstly, what is your budget? If you know how much money you have to invest then you’ll know what you can afford to lose and what your limits are.
Secondly, have you done your research? If you know what you’re investing in, then you’ll know the pros and cons and be able to make a sound judgment about the risk involved. Spend some time doing this and you’ll make safe choices that do not put your investment at risk.
What if one asset drops in value dramatically? Putting all your money into one form of investment is not particularly safe because, if this were to happen, you’d be badly exposed. This is why seasoned investors spread their wealth around different types of financial asset.
No matter how much you think you know, it still pays to call on the advice of professionals. This is fairly easy to access in an age in which the internet reigns supreme. IG’s online forex trading, for example, allows you to tap into expert insight and professional advice as you make your trades. Using platforms such as this can ensure that you make safe trades, as well as lucrative ones.
Want the safety of being able to call upon your money at fairly short notice? In which case, it’s probably a safer bet to ensure you keep your assets liquid, rather than put your money into property or art, which can take time to sell and free up your money.
Finally, don’t ignore the importance of cyber security. While online trading gives you speed and convenience, you do still have to take care not to put your private information at risk. Backing up your data, using robust passwords and using security software are all a must – particularly for those who use their machines to execute trades.