Making a good amount of money without having to participate actively sounds like an opportunity that none of us would decline. In today’s advanced era, there are several options available in UAE to earn a handsome passive income as a side hustle. If you are looking around to being financially independent, then making money with a passive source is the recommended strategy.
You just cannot deny the power of social media and the monetary incentives it brings to a lot of people in Dubai. if you do have a social media account, you must have come across a lot of documentaries and podcasts telling you ways to make money passively without having to spend scores of money.
You too can avail of the opportunity and earn money as a side income but be prepared to invest a lot of effort.
Ways to make passive income in UAE
The agenda behind a passive income is to make money without active participation. You of course have to put a lot of effort first as nothing comes easy in these tough recession times. You may be required to invest some money and do some hard work to sell your skill or product to generate a reasonable income.
Let’s learn more about ways to make passive income and create a financial net for a safer and more secure future.
Make a side hustle with a small investment:
Indulge in Real Estate Crowd Funding
One limitation of real estate investment is budget constraints. If you have limited savings and still want to invest in buying a rental property in DUBAI, you can consider crowdfunding.
Crowdfunding is generating earnings from a pool of investors. each investor puts in a certain amount of money, and then the crowdfunding firm utilizes the capital generated to purchase real estate properties, lend them on rent and distribute the net earnings among all the investors.
There are a lot of reliable crowdfunding platforms in Dubai. One of the popular companies operating in the UAE is Smart Crowd. It provides a rundown of the properties on its site to help investors find profitable sources. Interested investors can even make small investments such as AED5000 and earn profits when the properties are put out for rent. Read more details here.
Get stake is another noteworthy crowdfunding platform operating in Dubai that allows investors to make investments of as little as AED 500 in prime properties. With more than 60 thousand registered users on board, the platform provides a user-friendly interface to make crowd-funding investments and earn high-profit returns.
Learn more exciting details about real estate investment in Dubai here
Earn Passive Income with Trade Dividend Stocks
One attractive way to generate a cash flow is to invest in dividend stocks. A dividend stock is a money-generating strategy where a company’s revenues are routinely distributed among investors.
Dividend stocks have lesser risks as compared to growth stocks and may help you generate a consistent income as it offers two possible sources of revenue return. One is the regular income earned directly from the dividend stocks and the other is the capital gains from the stock price.
One of the renowned Dividend stocks investment platforms is e-Toro. It lets you invest in assets and link with prospective investors from around the globe. You can discover and explore tons of assets, exchange ideas, and hold discussions on plans and strategies to generate consistent cash flow.
For registrations and queries click here.
Another popular platform for dividend stock investment that you can consider is Sarwa. The user-friendly financial app allows you to trade stocks, deal in cryptocurrencies, and invest your portfolio passively with much ease and convenience. Find out more about the innovative platform here.
Buy a Rental Property
Investing in buying real estate properties is another good way to generate passive income in Dubai. Lending properties on rent for a longer duration can provide a consistent source of generating reasonable cash flow.
You would first have to invest in buying a property in a good locality with greater rental returns. If you do not have a significant amount of money to buy an apartment you can pay an upfront cost and pay the rest of the amount in installments.
The mortgaged property can then be rented out and you can pay the installments with the monthly rental income. Investment in real estate can be a long-term profitable strategy to help create financial safety in UAE.
On average the total rental income from one property in Dubai ranges from 5 to 7% so if you own an apartment worth a million Dirhams you can conveniently earn a net income of around 50k to 70k a year.
Invest in Index Funds
Index Funds allow the investor to earn profits by making low-cost investments. They offer reasonable gains and help you achieve your financial goals. You can make investments using index funds that typically hold down the stock dividend rather than purchasing individual stocks.
Your investment is used as cash for further investment in companies that form the particular index. It offers the opportunity for a more diverse portfolio and is a great side hustle for those who want to make money without getting involved.
Save Money using National Bonds
The National Bonds in UAE let you earn money by making an investment and receiving rewards and benefits in return. It offers competitive profit returns and is a less volatile strategy to earn a passive income. National bonds are safer and more profitable with lesser risks of loss involved.
However, consider investing a particular portion of your savings in bonds instead of putting all your cash into buying the bonds.
Learn more on national bond savings here.
Peer to Peer Lending
If you are thinking to earn passive income and want to make profits in short term then consider the peer-to-peer lending strategy. It’s a good alternative to conventional loans where you can borrow money from investors who are ready to invest money given your good financial standing.
Generating cash flow from investments that require little or no effort is termed passive income. Instead of waiting to receive monetary funds at retirement, you should consider investing in assets that would add to your existing earnings.
Building a recurring passive income in Dubai is feasible and easily realizable. However, it does require putting in the effort, hard work, capital, and sufficient knowledge to yield a reasonable income stream.