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Investing in bonds is a strategic approach to diversifying your investment portfolio, and for investors in the UAE , it offers a stable income with relatively lower risk than other asset classes. Here's a guide to help you navigate the world of bond investing within the UAE.
Why do companies sell bonds?
Companies sell bonds to raise funds for a wide variety of purposes, including:




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Corporate bond ETFs offer:
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Corporate bonds vs stocks
Buying stocksmakes you a part-owner of a company, granting voting rights and potential dividends. Stocks offer higher rewards if the company thrives, but also higher risks, including total loss if the company fails. Corporate bonds, on the other hand, make you a creditor with more security, especially if the bonds are collateralized or classified as senior debt, offering protection in insolvency cases. However, bonds yield only fixed interest, regardless of the company's performance.

How to buy corporate bonds
To invest in the corporate bond market, you could either buy actual bonds or shares in a bond ETF. Although a wide range of corporate bonds are listed on exchanges such as the LSE, they are primarily traded over the counter (OTC)through institutional broker-dealers.
How to invest in corporate bonds directly

How to invest in corporate bond ETFs
To diversify your portfolio or earn a regular income from dividends, you could consider investing in a corporate bond ETF. When investing in corporate bond ETFs with us, you’ll buy shares in the ETF through our stock trading platform.
Corporate bond ETFs use the power of pooled funds to buy a selection of bonds. They’re complex investment vehicles because their bonds may have different maturities, coupon rates and coupon dates.
Before buying shares in a bond ETF, it’s essential to understand what assets it holds and what the fund’s particular characteristics are. It’s also imortant to note that, unlike bonds, bond ETF shares never mature or repay a principal amount on the value of your share purchase.
How to Buy Bonds In UAE?
The 3 ways to invest in bonds in the UAE are listed below.
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Let’s break down the 3 different ways to invest in Bonds in the UAE, starting with international bonds.




In short
Investing in UAE bonds offers diversification and stable income with lower risk. Options include international bonds, national bonds, and bond ETFs. Tools like the Century Trader App facilitate easy entry into the market.
Interview of Arun Leslie John, Chief Market Analyst with Bloomberg
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