Where to avoid investing in the UAE

Investment is a form of putting money into assets or commodities, to realize profits in the near or future. The investment allows a person to invest in real estate, companies, commodities, etc., and obtain profits over time. Sometimes, the profits will be huge, and it depends on the investment made. According to the 2017 Global Investment Report, the UAE is the 21st largest country for foreign direct investment (FDI) destinations. The UAE is a market that every entrepreneur, businessman, and the investor wants to invest in, with great returns. Also, Dubai is the city of gold. Everywhere you invest, you will get rich profits. From a positive perspective, for short-term investments, time deposits are preferred, and for long-term benefits, real estate investments are preferred. Stocks, businesses, and other areas can bring investors Great returns. At the same time, in some places, investors need to pause and rethink before investing in the UAE. These places are full of risks, and it may not always be wise to put money where you might lose all your risks. Here are some places to avoid investing:

Pyramid scheme

This is a traditional investment scheme where organizations get investment from investors and provide them with profits when they attract more investors. This is very similar to the Ponzi scheme, but an investor here needs to attract another investor, and new investors need to attract another investor, this situation continues. Every investor will get paid if he gets a new investor. In the end, there will be no investors Interested, and existing investors will slowly lose money, and they will not taste any actual profits.

Online investment

This is something that people often encounter. It can come from any source, such as email, messages, online advertising, etc. The fraudster will impersonate a fake organization without any income at all, and ask for investment, and then, eventually, the organization will not. There will be no news. Or, just like they provide you with a lot of other information, only some basic details are provided.

Pumps and dumps

P & D scams are another common way for fraudsters to rob unsuspecting customers. In these scams, a series of scams make investors invest in useless stocks, and when the stock price soars, they sell the stock. Another way to deceive people is to lure investors into falling stocks with attractive high return promises. Often, these companies provide agents with high commissions to attract investment. Once new investors buy stocks, The stock price will eventually fall, which will make scammers make a lot of money and make investors suffer.

Ponzi scheme

The Ponzi scheme is named after Charles Ponzi, an Italian fraud businessman. He launched this very famous investment plan, which collects funds from new investors, as long as the money is used to pay back old investors. People are not large. The divestment and/or the company doesn’t run out of investors, and the plan works well. In most countries of the world, running a Ponzi-style company is a federal crime.

Forex plan

In this plan, traders will allow investors to invest some money in certain foreign exchange markets by promising huge returns. Unfortunately, in such a plan, when one investor sees a profit, another investor You have suffered losses for obvious reasons. This is just a foreign exchange scam, in which people seduce you into believing a false scheme, which ultimately leads to your loss. Few foreign exchange merchants even recommend him to use a foreign exchange as a high-risk low-risk investment.