Question: I've been a working expat in Dubai for five years. I have seen the insurance market expand to welcome increasing numbers of insurance companies and financial advisers. I am not sure whether to opt for a national or international firm for my savings scheme. Additionally, my current scheme hasn't given me the rewards I anticipated. How do I find out if there are new approaches to saving schemes in the market?
Answer: Savings and investments is a rapidly growing market, and there could be better schemes now available to meet your current and future needs. Because of the variety of products now available, you are in a position where you can virtually choose a bespoke investment scheme for your own requirements - this has many advantages, but it can also feel like a minefield out there.
You certainly need to sit down with a reputable fin-ancial adviser - preferably who is independent, and not tied to a particular company's products, so that you can consider all of the options that are on offer to you.
Firstly, you need to check if there are charges or not for removing your money from your current savings scheme.
You will then need to work out the amount you are able to invest and what kind of return you will be looking for.
The independent financial adviser will then be able to help you focus in on the kinds of products that will be best suited to your situation.
Like the growing number of international banks that now have a very strong presence across the UAE, there are a growing number of well-established international insurance firms.
There are always pros and cons to banking or investing with local and international firms.
Local insurance brokers have an in-depth understanding of regional business trends and are able to gain a better perspective of the needs of the international investor to be able to advise them. International insurance firms offer you an extensive variety of insurance schemes and packages that are constantly upgraded to meet their worldwide services.
You should always ensure that you only deal with people who are lic-ensed and provide licensed financial products within the United Arab Emirates.
Takaful insurance
You may also want to think about Takaful insurance. This differs from conventional insurance - Takaful is compliant with Islamic beliefs and based on the concept of collective insurance. One of the key attractions of the Takaful financial product market is the extent to which products are being made available for every element of a person's life.
The questions you should ask with regard to an insurance policy, from a consumer perspective, should outline your individual needs and goals. You need to understand what exclusions exist within policies and you need to shop around before deciding what suits you best.
If you are thinking of putting your money to work you need to consider mutual funds, bonds and equity investments.
The UAE is often regarded as the perfect place to invest in property with its booming market, however this can be a very involved and time consuming process which you would have to watch very closely.
As with most financial decisions it is worth shopping around to compare the different options that will be available to you.
Nigel Watson is Sales Director at Nexus, the region's leading financial advisor. You can find more advice at www.nexusadvice.com
