I have been turning this idea over in my head for a while now, and I think I have made my mind up. Let me try it out on you, dear readers, and see what you think of 'The Plan'.
I have lived in Dubai for a year, more or less. There was a period last year when I was commuting to and fro from London on a regular basis, but since January I have been here full time. I have all the trappings of Dubai residential status villa close to a beach, car I could not afford to drive in Britain, and Emirates Skywards membership.
I have braved Dubai traffic with equanimity, and now can even find my way out of Mall of the Emirates's car park in daylight, anyway. So I believe the time has come for a commitment to Dubai and to the UAE that says: "This is now my home, and I intend to stay here for a significant time." How to do that? I suppose the usual way to make such a commitment would be to invest in the property market.You know, a nice little villa in the Arabian Ranches or Dubai Marina or in one of those other places where foreigners are allowed to own property in the UAE.
I toyed with this idea for a while, but in the end decided against it. I like where I live, and will stay as a rent-paying tenant for as long as I can.
But property has its attractions, and I thought of buying in Britain, or France, or somewhere else in Europe. But this would not exactly show a commitment to Dubai, would it? "Thank you very much for the tax-free salary, Mr UAE, but I intend to take it all abroad." No, that would not do.
The Plan came to me in a flash as I was driving down the Sheikh Zayed Road towards Burj Dubai a couple of days ago. The project to build the tallest building in the world is so typical of Dubai - ambitious, eye-catching and ostentatious. How to invest in that, without buying an apartment in the spire itself?
The answer is obvious Emaar. The company that is building the Burj Dubai, as well as many of the other icon ic landmarks, is virtually a proxy for the city itself. Like Dubai, it is big on pazzazz, ambition and vision. But, again like Dubai, it sometimes gets lost in the minutiae.
Those stormy shareholder meetings, and the becalmed share price, prove that it is hard to get it right all the time.
With its faults, Emaar is the closest the Dubai Financial Market gets to a proxy for the whole economy. If you buy Emaar, you buy the Dubai dream.
So, for better or for worse, here is The Plan: Each month I shall invest in Emaar shares. The amount will be miniscule by the standards of a global hedge fund, but substantial by the benchmark of my own modest circumstances.
I will be a long-term holder, staying with the company through thick and thin, for as long as I am resident in Dubai. Then, I will take a longer term, but none of that shortsighted day-trading nonsense for me.
In the process, I will learn a lot about the Dubai market, and a lot about my own skills as an investor.
I will keep readers informed about my experiences on a regular basis.
There you go, that's The Plan. I have got an appointment with a stockbroker, but would be pleased to know what you think.
By Frank Kane
© Emirates Today 2007
