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Can I Buy UK Shares from UAE?

We have had several questions from readers on whether investors in UAE can buy British stocks being non-UK residents.

The UK law system regulates UK Stocks and bonds, yet, you do not have to be a British citizen to trade in the London Stock Exchange; in other words, you may buy UK shares being an Emirati resident. No specific laws prohibit non-UK citizens from investing in the different UK stock markets. Many investment firms cater to international clients. You will be (generally) only subject to UK tax on limited local source income and gains; on the resulting profit when trading those shares.

London Stock Exchange: Buying Shares of a Global Power

Although some of the comings and goings that the United Kingdom is experiencing regarding Brexit cleared after its effect on Dec 2020, it remains a world power at all levels, military, economic and financial. The UK has many world-renowned companies in many sectors: energy, minerals, and banking, among others. The British economy is among the most innovative, efficient and business-friendly economies. Their products and services are in high global demand for quality, especially in their former colonies.

In addition to this, investing in British stocks involves gaining exposure to the British pound (GBP), one of the most robust and stable currencies globally. For these reasons, investing in British stocks listed on the London Stock Exchange is an excellent option for diversifying a portfolio of stocks.

Shares of giant British Corporations are some of the most sought-after financial assets by global investors. Below we list [Some of] the most popular stocks:

  • Royal Dutch Shell: The giant oil company

  • HSBC Holdings: The big bank

  • BP: Another big oil company.

  • AstraZeneca: If you have lived on the earth during Covid times, you know who AstraZeneca is.

  • GlaxoSmithKline: A pharmaceutical owner of half the brands you hold in your bathroom.

  • Diageo: An alcoholic beverage producer and owner of some of the most well-renowned whiskies, rums and vodkas.

  • Unilever: An industrial colossus that produces articles of mass consumption.

  • Rio Tinto: One of the largest mining companies globally.

  • Reckitt Benckiser Group: Another mass consumption industrial giant.

  • Vodafone Group: The company that revolutionised the mobile business by globalising it.

  • Prudential: One of the largest global insurers and asset managers. As of 2019, they managed around 540 billion US dollars.

  • Lloyds Banking Group: Another traditional British Bank.

The previous is an incomplete list of the most well-renowned shares; many internationally recognised companies and brands are available to invest at the LSE. A rounded way of investing is to invest in the FTSE100 index, which groups the top 100 companies that trade on the London Stock Exchange.

FTSE100: The Index that Best Expresses the UK Market

Financial Times 100 Index, FTSE100 or Footsie, is among the most extensively respected stock market indices globally. The FTSE100 is the most representative index of the UK financial markets.

The index is constructed from the market capitalisation of 100 large companies that issued shares at the LSE. It represents a market capitalisation of approximately 1.8 trillion pounds (Around 70% of the stock market). The FTSE Group, a subsidiary of the London Stock Exchange, maintains and balances the index components and weighting.

Investing in a financial instrument replicating the FTSE100 Index is an excellent way to invest in a good share of the British economy through its corporate giants' stocks.

Brokers like eToro have Online Apps that allow you to buy UK Shares in a straightforward way

Brokers like eToro have Online Apps that allow you to buy UK Shares in a straightforward way

What is the minimum amount to invest in UK Stocks from UAE?

Unlike most general public thinks, the answer to this question is that many stockbrokers do not have a minimum deposit (or a tiny amount of cash).

How to Open a Trading Account to Invest in the London Stock Exchange from UAE

Opening an investment account with an Online Broker is a process that is completed online and requires the following:

  1. First, choose the broker that best fits your investment goals.

  2. Then, upload an ID (Passport or Emirati ID) and proof of address (electricity, water bills, etc.) through the Broker's App or via email.

  3. Make sure to choose the correct base currency of the account. With some brokers, changing it once you open it can be painful. The base can be in US Dollars (USD), Euros (EUR), Pound Sterling (GBP), Swiss Francs (CHF), and Australian Dollars (AUD) as the base currency. Practically, they all offer US Dollars or Euros as an option, and most are also in Sterling.

  4. Once the broker approves the account, depositing cash is time. The depositing and withdrawing money methods are usually Credit Cards, Bank Transfers or eWallets (PayPal, PaySafe, Skrill, SafetyPay, Neteller, among many others). The available options to deposit funds will depend on each broker. A vital fact to mention is that all of the Brokers presented above allow you to use a simulator on their platform; they allow testing their Demo account, totally Free. In other words, you can open a Demo account, try the platform, and decide whether to deposit money.

But I am not an Investment Banker. So is it easy to invest?

Online Brokers allow straightforward investing in the London Stock Exchange through optimised apps that grant easy and fast access to the UK financial markets. Most platforms resemble a social network or any other phone app: They are designed so that the investor can learn and start trading quickly without needing much prior knowledge. For example, to buy bp shares or to invest in a financial instrument that replicates the FTSE100 index, you have to:

  1. open a trading account, as explained before,

  2. deposit money,

  3. Search for "BP" or "FTSE100" on the Broker's Trading platform, and

  4. Press the "Buy" button.

And, done, you are officially investing in British-related financial assets. If you want to move forward, check out the four options we have presented initially, which are the best to deal with in the Emirates.

Best Brokers for UK Shares Trading available in UAE

Based in the UAE and wish to invest in UK Stocks? The London Stock Exchange (LSE) is an attractive financial market to invest in due to its long tradition. Shares of 3,000 companies from 70 different countries are traded on it.

Learn about your alternatives, and how to buy UK Stocks from UAE.



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