Is the Middle East a Good Investment Option in 2020?
Given its extensive resources and growing population, the Middle East is gaining popularity due to a lot of investment opportunities. There are countries in the region that rely on specific industries such as crude oil for growth. But, as we have turned into 2020, the local governments are looking for ways to attract more investors in the area. Located between the markets in Europe, Africa, and Asia, the region continues to provide some pioneering opportunities. Due to this fact, the global investment for 2020 can be termed as extremely optimistic.
It is true that the Middle East has always been a center of attention for unrest, but the recent trade wars between the U.S. and China, the sanctions between Russia and the EU, and UK’s exit from the European Union have caused a spark in the market. In this article, I am going to discuss some investment options you can go for if you want to make some quick money.
Healthcare and Education
According to a report, 60% of the population in the Middle East region is under the age of 25. This presents a great opportunity for someone who wants to invest in these two sectors as there is a huge return for investment margin. In a report by the Boston Consulting Group (BCG), experts suggested that the private education industry would double in the next three years from a starting point of US$13 billion to an expected growth to US$26 billion. There are a lot of initiatives being taken to create a top-notch education system. There are a lot of programs such as the UAE Vision 2021 National Agenda which hope to stabilize the education system in the region.
Real Estate
The Middle Eastern investment in real estate is growing faster than any other region or sector, as it has seen an apparent increase in stability in the past few years. Compared to the last years, there is a jump of 60% more investment in real estate as countries like Dubai, etc. are seeing a huge development in construction and infrastructure. People of the Middle East have turned to real estate as their go-to investment option as the region is slowly developing into the next tourist hub. On top of that, the trend of investing in real estate has become so outward, that middle easterners are starting to invest outside the region too. If you are looking for good estate opportunities, you can contact NRIA and get the best possible advice on investing in property.
Technology
Another sector that is making huge strides in the region is technology. There has been a huge demand for skilled professionals in the area, which has opened a lot of doors for tech-startups. There are a lot of global tech companies that are opening their shop in the Middle East, and they are benefiting highly from that. As the region offers the best value in terms of land, the cost of setting up a tech startup is low compared to western countries. Alibaba, the tycoon, is also said to have invested US$600 million to create more than 3000 companies whose major focus in on artificial intelligence. There are several countries in the area which have shown great interest in working with companies so that they can easily bring their business in the region. They have publically stated that they aim to make Dubai and the neighboring countries a powerhouse of blockchain technology by the end of 2020.
The Bottom Line
Despite the shift in power dynamics in the region and the huge opportunities to make a valuable investment, you still have to be very careful as perceive all the risks involved. The region is known for its political instability, low transparency, and volatile markets. But, if you play your cards right, you can make a lot of money.
