Social networking, investing and the latest scams

Social networking, investing and the latest scams
15 May 2013

 

I.D. on the money

You will soon be able to use your Emirates ID card as a credit card, states a news report in The National this morning. The card, which is already essential to accessing many government services, will be linked to banking financial services and is already  used in conjunction with Al Hilal Bank, Sharjah Islamic Bank and the National Bank of Abu Dhabi. There have been talks of it functioning as a pre-paid credit card too. Negotiations continue with a study of 400 organisations to evaluate how the card can be used. Tell us what you think.

A fool and his cash…

Are soon parted, or so the saying goes. May is officially International Scams Awareness Month, and there are several, popular ‘money parters’ to look out for, according to a recent report in the Gulf News.  Popular UAE scams include conmen carrying out ‘home maintenance services’, fake energy-saving gadgets that claim to save up to 40% of outputs, fake lottery winner texts and loan arrangers. We’re sure there are many more out there – share some of them with us here.

Get linked in

The professional CV networking site LinkedIn is now worth an estimated $20 billion, and is swiftly surpassing the popularity of Facebook as a social networking tool. The latest data shows that there are now 200 million members worldwide, and there is exponential growth as more job seekers join the network looking for better financial opportunities. If you’re not already on the network, now is probably a good time to get signed up and communicating. Read more about it here.

CBD bonds launched

The Commercial Bank of Dubai has launched a $500 million, five-year debut International bond with a coupon of 3.375%. The move has attracted strong demand from investors keen to make use of the attractive rates, which has in turn allowed the price to be kept low. What’s your take on bonds? Should we be investing more in them? Tell us your views.

Old as gold

Gold has fallen in price again today – making it even more attractive for those keen to invest in precious metals. Some suggest that the slump in price will be more long term than has been seen before, but other investment experts are looking at the history of gold price fluctuations and suggesting now is a great time to buy. While the ‘fall in price percentage’ is higher than we’ve seen since the 1980’s, those who invested in gold 10 years ago, are still enjoying a healthy profit margin on their investment. It’s all relative, apparently.

 

 

Comments

  • Colin
    Colin
    2013-05-15T11:10:31

    Another bank adding more debt to its consolidated balance sheet, this is representative of the low savings rate in the UAE, bank solvency laws and their need for working capital - CBD's bonds are rated just Baa1 by Moody's, not a good buy in my opinion. Too much debt is being taken on by banks in the UAE, and this is unsecured debt, investor's should tread with caution and read the prospectus - although as is often the case most of this will be taken by institutional investors, especially pension fund managers who are required to carry a level of bonds, although thankfully not too much corporate bonds (debt).

    So to answer your question Joanna, if we are going to invest in bonds directly look for those with an S&P or Moody's rating of A+ and which are secured and only consider those as investment opportunities - otherwise they are higher risk for a very low return - better to put your money in the stock market than high risk bonds with low returns.  

  • joanna
    joanna
    2013-05-15T11:48:27

    Very insightful Colin - It's great to get such a comprehensive answer. It's far too easy to invest in a risk you don't fully understand. Making sure you research  widely and wisely is so important. 

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