The best 3 investments for expats outside Egypt

what are The best 3 investments for expats outside Egypt? This question represents the main axis around which the aspirations of capital owners working outside Egypt revolve, especially in times of crisis and economic recession, as there are many strategies followed by large investors to preserve and develop the value of their money, in addition to that there are special methods for owners of limited capital 

In the following lines, we monitor the best 3 investments for expats outside Egypt at the present time for all societal groups, by discussing tips that protect your money from the risks of inflation and economic decisions, in exchange for developing a methodology that enables you to avoid making incorrect decisions

What is the investment? What are its types and importance? 

Before discussing the detailed proposition on the best 3 investments for expats outside Egypt, we review the concept of investment, both individually and collectively, by stating its importance and personal motives towards its application 

What is the concept of investment? 

When talking about investment from a national point of view, then it is the decision taken by national bodies to support new projects, which has many advantages that support the economy or individuals. In addition, investment comes in the sense of benefiting from assets, whether they are represented in a profit-generating project or real estate. Or trade in the stock market, etc.  

The term investor is applied to the institution that owns one of the investment assets, and it is also called to the individual who owns the capital and the beneficiary of the returns, whether this return is profitable or to preserve the value of funds, which represents the best 3 investments for expats outside Egypt or returning from abroad 

What are the motives and importance of investment? 

• Increasing the per capita share through increasing the local productivity 
• The occurrence of an economic recovery for the state, which is positive for the citizens 
• Reducing the problem of unemployment and providing various projects, and thus job opportunities 
• Providing more services and facilities for investors and citizens. 
• Exporting products abroad and providing foreign currency, after satisfying the needs of the country’s citizens 

What are the most important types of the best 3 investments for expats outside Egypt

• Quick return investment 
• Slow return investment 
• Long term investment 
• Short term investment 
• public investment 
• private investment 
• financial investment 
• human investment 
• Direct investment 
• Indirect investment 
• local investment 
• foreign investment 

What are the best 3 investments for expats outside Egypt?

Economic crises continued in the past years in an escalating manner, as the global market witnessed relative stability after the crisis of 2008, then another crisis formed due to the Corona virus exploded with the beginning of 2020, then waves of inflation followed and a great loss of value from the capital of citizens and investors due to the rise in commodity prices 

In 2023, global economies are expected to face another wave of economic fluctuations represented by a food crisis, in addition to what some developing economies are suffering at the local level, so what are the proposed solutions to protect capital from erosion? What are the best 3 investments for expats outside Egypt? And what is the best investment after the high price of the dollar? and here we’ll be presenting the best 3 investments for expats outside Egypt

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1. Investing in gold as one of the best 3 investments for expats outside Egypt

Among the solutions pursued by large and small investors for several different purposes, and despite the inaccuracy of the term “investment in gold” is also considered one of the best 3 investments for expats outside Egypt, it is the way to guarantee citizens’ money in times of crisis, as the investment principle requires the occurrence of productivity and thus obtaining profits, this is what the owner of gold bars or ounces checks for. For example, we review one of the cases that illustrates the importance of freezing capital in the form of gold  as one of the best 3 investments for expats outside Egypt

• In the event that a person buys a gold bar at a price of 10,000 pounds 
• Its price may reach 20,000 pounds, an increase of 100% in a certain period of time 
• Some may think that he made double the profit, but on the other hand, he was able to preserve the value of his money only, given the extent of the purchasing power of the currency and the amount of increase in the rate of inflation, so gold is one of the options that joins the list of the best 3 investments for expats outside Egypt

Advantages of gold investments as one of the best 3 investments for expats outside Egypt

• Protect your money from inflation 
• Avoid fluctuations and local and global economic problems 
• Investing in gold knows no loss, as it is the element on which money is measured and linked 
• A unique solution to diversify your investments if you have a large capital 

Disadvantages of investing in gold 

• Gold is exposed to continuous fluctuations in price during short periods of time, especially in times of crisis, so it is an item for long-term investment only, meaning that it is preferable not to sell your gold holdings before 5 years have passed in most cases 
• It is not easy to obtain liquidity from your golden savings, for the aforementioned reason that it is a long-term investment 
• You may get a limited return from your golden investments, but it comes for the purpose of preserving the value of money in the first place, so it is the best investment for expatriates for a wide group of them, in case they want to achieve diversification in investments 

2. Investing in real estate as one of the best 3 investments for expats outside Egypt

Real estate investment comes as a safe vessel for your money, as it is one of the best types of investment at all, in competition with gold, especially the Egyptian real estate market, which is witnessing a fundamental difference from other real estate markets, due to the new rental law, which requires an annual increase of 10% on the property which makes property the ideal choice for a wide range of customers and considered one of the best 3 investments for expats outside Egypt 

The real estate field has withstood all crises during the past decades, as it has proven its worth in avoiding and facing various economic problems such as stagnation and inflation, but sometimes it becomes a quantum leap for real estate investment owners by achieving a measure of profits in times of crisis, so it is one of the best 3 investments for expats outside Egypt and among the options under consideration 

The most important advantages of real estate investment as one of the best 3 investments for expats outside Egypt

• Protect your capital from inflation 
• Putting money into a recognized asset 
• Real estate value appreciation in the long term, and thus capital development 
• There is no room for loss except in the event of natural disasters and force majeure 
• You can get a monthly amount through real estate rent. 
• Real estate investment is characterized by a low tax, compared to other investments 

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The main disadvantages of investing in real estate 

• Real estate investment often comes with high prices 
• The negative impact of real estate demand due to local economic conditions 
• Mostly, you can only sell the property within several months, moreover, it is among the long-term investments that bear fruit in the long term, not before that 

The most important real estate investment rules as one of the best 3 investments for expats outside Egypt

The most important real estate investment rules as one of the best 3 investments for expats outside Egypt are as follows: 

• Studying the real estate market and identifying its strengths and weaknesses, in addition to that, you must determine the market in which to invest. For example, the future and the best investment for expats is mostly in the new Egyptian cities 
• Good investment planning, which enables you to succeed in this highly competitive field 
• Knowing one field while placing your investments in real estate, and not being distracted by more than one field 
• Don’t risk huge sums on one property, which is a popular economic principle 
• Finding good relationships in the market, and benefiting from different experiences 
• Real estate insurance owned by you, and ensure its legal status during purchase 
• Obtaining expert advice, as well as exploiting and seizing opportunities 

The best real estate investment strategies as one of the best 3 investments for expats outside Egypt

Some may confuse real estate investment rules and strategies as one of the best 3 investments for expats outside Egypt, and below we review the most important strategies to clarify the difference between them 

• The property-income strategy: It is one of the most common methods, whereby the investor purchases real estate and rents it to obtain a return on a monthly basis 
• Real estate development strategy: Although there is a difference between real estate investment and real estate development, development is part of investment. This method involves buying a property, then maintaining and developing it to sell it again with a profit return, or by changing its activity to a field that is more attractive to customers 

We have reviewed the most common methods in the Egyptian market for real estate transactions, which are the best investment for beginners, while the rest of the strategies for those with experience are as follows 

• Real estate investment funds 
• Real estate funds that are traded on the stock exchange 
• Real estate investment through partnership 
• Online real estate investment platforms 
• Real estate investment groups 

By following the aforementioned tips and rules, the best investment for expats outside Egypt can be achieved in the real estate field 

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3. Investing in foreign currency as one of the best 3 investments for expats outside Egypt

Foreign currencies are among the safe havens to contain capital from the local currency in Egypt and developing countries, led by the US dollar, which has become the factor on which the currency is valued, affected by its ups and downs, so it is an option for the best 3 investments for expats outside Egypt

Advantages of investing in the dollar in Egypt as one of the best 3 investments for expats outside Egypt

Being the first choice for Egyptians inside and outside Egypt at the level of foreign currencies, we discuss a set of advantages of investing in it as it is considered one of the best 3 investments for expats outside Egypt

• An ideal option in the short term in emerging countries 
• Preserving the purchasing power of the local currency 

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Disadvantages of investing in the dollar 

• The investor must constantly follow the exchange rate of the dollar so as not to be surprised by a sharp decline in its value, and although there is no great possibility of this happening, it means that the investor has experience in the field of currencies 
• The value of the dollar is affected according to the American Stock Exchange, which makes gold and real estate a better option 

Solutions to economic crises by avoiding failed investment 

After applying all or some of the investments that we discussed in detail above, we offer some advice that you must follow, which requires avoiding some personal and collective habits that increase the levels of crisis at the level of individuals or the state, as follows: 

1. Passive investing

Passive investment is a term that appeared in the eighties of the last century in the United States, and it means pressure on a specific company or industrial body to change its dealing pattern or prices, through an economic boycott and thus the occurrence of stagnation and an imbalance in supply and demand 

In addition, this strategy is used for other purposes such as putting pressure on the government, but with the stability of the situation or the existence of crises, a large group of citizens resort to passive investment. How does this happen and why? 

In fact, the people of developing countries lack investment thought or productive thought in general, and this is what often happens 

• Accumulating money as a way of saving, and thus losing its value over time 
• Disrupting investments, lack of productivity, and export opportunities to obtain foreign currency 
• In addition, some people are reluctant to invest their money at the time of the crisis in order to preserve it and refrain from buying commodities due to their high prices, which negatively affects the level of individuals, agencies and companies, and thus achieve negative investment 

The best 3 investments for expats outside Egypt, investment entails (action and inaction): 

Action: Follow the correct financial strategies to survive the risk of the crisis 

Abstinence: Refraining from some actions, the most important of which is passive investment 

2. Bank certificates (not considered as one of the best 3 investments for expats outside Egypt)

Real estate investment or bank deposits? Some questions revolve in the minds of Egyptian market investors when making an investment decision, and in fact there is no way to compare real estate and bank deposits 

In the past years, we have witnessed the issuance of bank certificates coinciding with the existence of any of the economic crises. On the other hand, a wide category of market clients seek to obtain the highest return from the certificates offered by banks, which negatively affects both the individual and the economic level of the state and thus, the problem of the economic situation is exacerbated 

Despite some advantages that some people see in bank certificates, such as obtaining a fixed return or saving small amounts, on the other hand, many defects appear as a result of this act, such as the following 

• The size of the return is not commensurate with the rate of inflation, so you will lose part of your money when you put it in a bank certificate 
• The amount cannot be refunded until at least 6 months have passed from the date of deposit 
• Some banks resort to a trick with bank deposits in general, by changing the advertised interest rate to push you to invest in another field within the bank 
• Putting money in the form of bank deposits increases the state of economic stagnation, due to the lack of investments and the increase in the unemployment rate and the other losses that follow at the level of the national economy and society 

Are cryptocurrencies and the stock market considered to be one of the best 3 investments for expats outside Egypt

The field of speculation in stocks and the stock market, along with digital currencies, is among the most prominent investments for some, but we do not recommend either of them at the height of economic depression, epidemics, and world wars, for the following reasons: 

• The areas of the stock market and currencies lead to the reluctance of customers from realistic investment that drives the economy 
• You need great experiences to enter into times of stability, in addition to risking times of crisis 
• You may resort to deception when selling stock shares, by deluding the buyer with the strength of the shares you own in a company, and therefore this may happen to you when buying 
• It is one of the areas that cannot withstand inflation and the fluctuations of the global economy 
• You can lose all your cryptocurrency investments just by losing a bunch of data 

In addition to the defects that afflict every field about the difficulty of recovering investments, especially in critical periods in which customers suffer from loss of confidence and fear for their savings 

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Real estate transactions are one of the crucial decisions in an individual’s life, and with the spread of various real estate scams and unreliable companies, the real estate website offers you a selection of the most important experts in the Egyptian real estate market, to help you make a proper purchase decision

The most prominent questions about the best 3 investments for expats outside Egypt