Watch: Here's why you should invest in art in the UAE
The UAE art market has become one of the hottest new investment crazes in recent years
Dubai: The art market has become one of the hottest new investment crazes in recent years. Painting and sculpture collectors frequently buy pieces with an eye towards adding to their investment portfolio.
Like stocks and bonds, art can increase in value. If an up-and-coming artist goes on to a successful career, the cash value of their work will skyrocket.
Profits from art won’t happen overnight. Experts recommend art investment for patient investors with a time window of 10 years or more, so think long term. Many art investors include paintings in their estate planning as assets to pass on to their descendants.
One major perk of art as an asset is that its value doesn’t rise or decline with the stock market. Even if your stocks aren’t performing well, your art investment may be doing great.
This is good news for the savvy investor who wants to diversify a portfolio and minimise risk. And ideally, though not always, art will continue appreciating in value over time.
When it comes to the art market in the UAE, The recent success of Art Dubai, the Middle East’s contemporary art fair presenting the work of hundreds of globally recognised artists, and the way in which other initiatives survived the pandemic online, are an indicator of a market alive and growing.
Dubai-based art dealers are convinced that the emirate’s art market is picking up at a rapid pace after international blue-chip galleries such as Perrotin (Paris, Hong Kong, New York and Tokyo) and Templon (Paris, Brussels) joined Art Dubai this year.
Furthermore, art is moving online, in a territory with no borders that makes the location where you buy your pieces irrelevant.
In the UAE, there are no specific financing products for art. If you are skeptical of dealing in art directly, you can opt for art funds, which may also offer advisory services.
