Best Financial Advisors in Dubai & the UAE (2024) (2024)

Whether you’re an individual or a business entity, financial advisors can provide the guidance you need to manage and optimise your investments, savings, and overall financial health.

In this article, we’ll help you review and compare the leading financial advisors available in Dubai and the UAE, as well as uncover the untold pros and cons of the industry.

Table of Contents

• What are Financial Advisors?
• Red Flags and Things to Avoid When Choosing a Financial Advisor
• Robo-Advisors vs Financial Advisors
• Do-it-yourself investing in ETFs
• Conclusion

When looking for a financial advisor in Dubai or the UAE, you need to consider several factors:

1. Credentials: Make sure the advisor is certified by relevant bodies. In the UAE, financial advisors should be regulated by one or more regulators, the most prevalent being the Dubai Financial Services Authority (DFSA).
2. Services: Determine what services the advisor offers. Some focus on investment advice, while others offer comprehensive financial planning services, including tax, estate, and retirement planning.
3. Fees: Understand how the financial advisor charges for their services. They could charge a flat fee, an hourly rate, or a percentage of assets under management. Always ask for full disclosure of their fee structure.
4. Reputation: Research the reputation of the advisor or the firm they work for. Read online reviews, ask for client references, and check if they have any disciplinary history.

Be aware that customer reviews are bad for most of the services compared, which is typical in the financial services industry. We recommend you dig deeper to find out more about the companies mentioned here.

Please note that not all information is publicly available for these firms, so some fields have been marked accordingly. It’s always best to contact each firm directly for the most accurate and up-to-date information.

Not all advisors have your best interests at heart. Here are some red flags and practices to avoid when choosing a financial advisor in Dubai and the UAE.

• Frequent Platform Switching: If your advisor trades excessively in your account (buys and sells very often), it’s time to be cautious. This practice, known as ‘churning,’ often serves to generate commission for the advisor, not benefit you. If you suspect your advisor is engaging in churning, consider seeking a second opinion and possibly shifting your investments to another advisor.
• Structured Investment Products (Structured Notes): These are complex investment vehicles that can carry higher risks than they initially appear to. While sometimes they can provide good returns, more often, they underperform. If your portfolio includes structured notes, ask your advisor about their price. If you can sell them without incurring a substantial loss, consider doing so.
• Cross-Selling Other Products: Be wary of financial advisors who consistently push other products, such as life insurance or complicated offshore savings and investment schemes. While these products are suitable for some clients, advisors may promote them due to the large commissions they can earn. Ensure that any product recommended to you aligns with your specific financial goals and risk tolerance.
• Conflicts of Interest: Always watch for potential conflicts of interest. Some advisors might prioritize their interests over yours, promoting products with high entry and exit fees due to the significant commissions they stand to earn. This practice could result in unsuitable investments not aligning with your financial objectives.
• Overemphasis on Actively Managed Funds: If an advisor insists that ETFs underperform the market and actively managed funds always outperform, it could be a red flag. While actively managed funds can sometimes outperform, they also come with higher fees, and the majority do not consistently beat the market. Good advisors recognize that a blend of investments, including ETFs and actively managed funds, often serves the client’s best interest, depending on their financial goals and risk tolerance.

Robo-advisors, on the other hand, use algorithms to manage investments. With minimal human intervention, they offer a straightforward and often more cost-effective way to manage portfolios.

Two leading robo-advisors in the UAE are Sarwa and StashAway. Sarwa combines automated investing with access to human advisors, offering a balanced approach. StashAway, meanwhile, uses a data-driven approach to personalize your investment strategy based on your financial goals and risk preferences.

While professional advice from financial advisors can be beneficial, another popular path to investment involves direct investment in Exchange-Traded Funds (ETFs). This method could prove fruitful for those looking for a more hands-on approach to their financial journey while saving on fees.

ETFs are investment funds traded on stock exchanges, much like individual stocks. They’re designed to track the performance of a specific index, sector, commodity, or asset. For investors in Dubai and the UAE, investing in ETFs can provide a straightforward way to diversify their portfolios across various sectors and geographic regions.

1. Opening an account with reputable brokers, such as Interactive Brokers, or any other firms of your choice, can be a strategic first step.
2. Once you’ve set up an account, allocate some funds into ETFs. Feel free to check our article about . This process will allow you to test the waters and better understand market risks and your risk tolerance. Remember, investing should be seen as a long-term game, and consistency is paramount.
3. Engaging with various resources, such as financial forums, articles, and news, can provide additional insights and understanding. Networking with other investors can also yield diverse perspectives. However, it’s essential to discern valuable information from noise and to make decisions based on reasoned analysis, not hearsay.

Hope we helped you decide which financial adviser to choose. We recommend you consult the websites mentioned above, dig through the information presented, and make your own decision.

If you want to try it out and adjust over time, Sarwa could be a good option: their low minimum deposit can help you test the waters before deciding to invest a larger amount.

Let us know in the comments below if you have any feedback about the article or the companies mentioned. We’ll be happy to hear from you!

Happy investing!