Global Intelligence Center

Dubai has long been thought of as the jewel of the United Arab Emirates, a place for investors of all types to make substantial profits from foreign investments, and a massive development in the property industry. However, with the current recession ending, what does 2010 hold for the Dubai economy?

The United Arab Emirates government has always beenmuns1 hesitant in disclosing information about the current state of the economy with The UAE Minister for Economy, Sultan bin Saeed Al Mansouri, dismissing economists forecasts saying that it would be impossible to make an accurate forecast on the country’s economic growth this year amid the global meltdown.

The region has had immense growth in the last 3 years, with an annual GDP growth rate of 21.9 percent, spurred on by oil production and vast property development including the world archipelago. But with the recent global recession and the United Arab Emirate’s relationship with the US dollar it is hard to predict the future for the Dubai region.

Many investors are steering clear of the regions property, which has plummeted in recent months, in favour for financial investments into stocks and bonds offshore in European and British markets. Oil production continues to drive the UAE economy which has spurred its strong fiscal surplus achieved over the past five years.

dubsThe real picture is that the UAE is still a striving region in terms of an emerging country. With markets being developed and oil production continuing despite some of the lowest prices in the last 5 years, the overall position of the region seems promising in the long term; nevertheless, most UAE investors are heading offshore in the quest for higher returns on investments based on well informed decisions, not like in their homeland where any negative report of the Dubai economy can be heavily penalized by the government.

Major elements including the huge number of participants and inflation are destroying the returns for investors in national premium bonds.

Inflation and taxes affect investment returns; however, in the last 2 years, the UK premium bonds have been the most affected as investors withdraw their national savings and invest elsewhere. So, where is the money going?

With the current global economy still in doubt following the recession and many investors still unsure about the financial situation of many companies, some investors are still placing funds into ’safe’ options like premium bonds without thinking of other viable options.

imagesWith premium, bonus and lottery bonds, the value of the prize do not rise with inflation. Other corporate or hybrid bond investment schemes have floating interest rates or unlimited return potential and are not subject to a random draw to allocate prizes, which means for most investors, will offer a better return on investment

Tax on investments occurs globally these days as they are classed as a source of income. Tax for most investors will see profits diminish however it is essential for investors to declare earnings from corporate bonds, hybrid funds and hedge funds.

Other bond investments which are rising in popularity as the global recession ends include hybrid funds. Top fund managers RC Global Equity, DE Shaw & Co, Bridgewater Associates and Och Ziff offer hybrid and corporate bond funds to maximise returns for both institutional and private investors.

The UAE have been a strong nation and have developed as a country through oil production, manufacturing and property development. However, the United Arab Emirates is now a world leader in foreign investment with large scale investments in European and American markets.

The following list comprises the top 5 lottery, national or premium bonds around the world. The concept of these bonds is a debt instrument in which a lottery draw is made each month and the winning investors receive a monetary prize. Common in many countries these bonds are a safe and affordable investment for many investors around the world.

High participant numbers leading to lowered chances of winning are making some investors withdraw their premium bonds in favour of other investments including corporate bonds, mutual funds and hybrid funds.

RC Global Equity Fund is among the top forecasted hybrid funds for institutional investors to watch in 2010. Their unique investment strategy set them apart from other hybrid fund, corporate bond fund and hedge fund providers.

The following list features the top 5 hybrid funds for 2010. These funds, which cater for institutional based investors, all follow similar investment strategies in order to perform and continue investment after the recession of 2009.

The procedures and strategies used by top hybrid fund providers are all similar but slightly varied to a degree. The following characteristics are all common in the best hybrid funds for 2009.

The recent approval of several swine flu vaccines by top pharmaceutical companies will benefit industries associated with the swine flu virus.

Recent approval of swine flu vaccine’s by top pharmaceutical companies GlaxoSmithKline (GSK), Novartis (NVS) and Baxter International (BAX) to help ease influenza pandemic.