Most large gold investments are secured in a special gold vault. But it is becoming increasingly popular for gold storage to be done offshore in Dubai’s new DMCC vault.
Advantages of Offshore Gold Storage in Dubai
Dubai is known as “the city of gold”. One fifth of the worlds gold production is managed in Dubai. There are numerous refiners of gold in the UAE, with most of those able to handle large volumes of high quality refined gold. With the gold refining being done in the UAE, storage in Dubai means there are very low transport costs between the mint and the gold vault.
Investing money from African countries like Nigeria is full of difficulties. Even if the money is made legally, there are very few legitimate avenues for reinvesting. So many local investment options carry so much risk that you are more likely to lose your money than actually make consistent profits.
The issues regularly seen with illegal African and Nigerian Investing options are:
The investment opportunity does not really exist. Once you hand over your money, the investors disappear.
The business managers live off investors’ money rather than using it for profit making. Fraud and embezzlement is a constant concern.
The investment opportunity is a front for illegal activities. This puts your investment at risk of being closed down by law enforcement and all funds seized. Worst yet you might end up in trouble with the police!
Corruption kills off the business. If a business is doing extremely well, people of influence start putting their hands out. And if not compensated, they start causing issues with getting approvals, licenses, or permits. This can shrink the possibility of the investment returning profits to investors, or kill off the business if the wrong people are made upset.
Being targeted by militants or violent protests. Nothing like an angry horde or a few RPGs to destroy a hard built business opportunity.
Developing countries are not the best places to store wealth. The best idea is to diversify the locations you keep wealth to ensure it isn’t lost. Any wealth that is to be invested long term needs to be moved some where safe and secure.
Why Nigerian people now move money to Dubai.
Dubai is setting itself up as a location for international business. It has a steady political system, and strong rule of law. This makes it easy for businesses to operate without having to worry about a constantly changing landscape.
Because of the issues with illegally obtained wealth, many banks and governments will not accept money from Nigeria or other African countries. Dubai however wants to do business with people from everywhere around the world, so have put in processes to vet and ensure money from Nigeria is legally obtained.
Dubai has provided licenses to respected and trust worthy companies to provide investing services with money that has been thoroughly reviewed and approved of. You can’t just walk up to a real-estate agent with a suitcase full of money and start investing. Money most go through the right sources and get cleared before being invested.
Investing Options for Nigerians in Dubai
As mentioned above, real-estate is a popular investment in Dubai. Land banking is popular in many stable governments around the world, but liquidation is often slow and values cannot be guaranteed. When property returns are high, development rates tend to accelerate as well. This makes real-estate vary in its potential for long term wealth storage.
Investing in business or restaurants is an option that is very difficult to find in Dubai. Most businesses are started fully funded by a private investor with deep pockets. They know how to get through the approval process to be allowed to start operating and don’t need anybody else’s help. You could try starting your own business – but then you are taking all the risk and must know the local business and legal processes to be able to operate freely.
Gold has long been the biggest investment opportunity for Nigerians in Dubai. Dubai is not known as “The City of GOLD” for a reason. A large number of the world’s largest gold refiners are in the UAE. As a result sales of gold bullion in Dubai is the highest anywhere in the world. This market is so important to the UAE government that they have put in place many legal protections to ensure their good reputation in this market. But at the same time they have many laws that make investing in Dubai’s gold market very attractive to international investors. For example buying and selling of gold bullion (bars, and non-collectable coins) is tax free.
Brinks also operate a vault in the Almas towers in the DMCC free trade zone. This vault is rated as the 5th most secure vault in the world. According to world banks rules – gold bullion held in a non-bank vault is a “non-reportable” asset. Meaning investing in gold that is stored in this vault does not have to be reported – hence it is anonymous to governments.
Dubai licenses the sale of bitcoin
Dubai is very forward thinking. It sees Bitcoin will have a future in world money transfers, so it wants to be part of this new system. Unlike other countries that see that they can’t control bitcoin so they are banning it. Not only has Dubai had a “Bitcoin ATM” in operation for some time, but they recently gave the first license to an investment firm to sell Bitcoin to their customers.
Why is this significant? The government is PRO Bitcoin, so is unlikely to ever pass laws against your investment, or prosecute and shut down the company you’ve invested with. This has happened in the USA, and all funds held are then frozen during the investigation. Dubai has protected its gold trade from potential money laundering practices and other illegal activities. They are now applying the same laws to Bitcoin. Through lengthy inspections, companies who have proven that they follow and endorse these laws are being licensed to sell Bitcoin to investors.
How to invest in Gold Bullion and Bitcoin in Dubai
Well there are many who can provide gold bullion services, but only one that can also provide cryptocurrency investing with legal protection in Dubai. Not only are they approved and licensed by the government, but they have low cost access to storage in the Brinks vault in the Almas towers. Do you think your bitcoin investments will be secure enough being held offline in a Brinks vault? Well Lloyd’s of London is so convinced they are willing to fully ensure any cryptocurrency investment against loss as an added benefit. You won’t find this level of service anywhere else in the world!
Because of the demand from businesses wanting to take advantage of the huge opportunities offered by the DMCC zone, the government is extremely strict about whom they allow to setup offices there. It often takes several years and through back ground checks before permission is given. Despite the lack of taxes, the government still keeps a close watch on businesses to ensure money illegal practices such as laundering and trading in “conflict gold” does not occur. This ensures a high level of trust for customers who want to deal with businesses based in Dubai’s important DMCC tax free zone. Continue reading “How to invest in the Dubai DMCC zone”