Public affairs commentator Mahdi Shehu has warned investors to exercise caution, noting that recent developments in Dubai demonstrate that no investment is entirely risk-free.
In a post shared on X on Wednesday, Shehu highlighted Dubai’s transformation over the past three to four decades into a global investment hub, attracting investors from across the world. “In the last 30–40 years, Dubai became famous as the ‘investment darling’ of the world,” he said.
Shehu explained that many investors regarded the city as a safe haven due to its robust infrastructure, liberal investment policies, and high sense of security. “Every investor’s dream is to move to and invest in Dubai… and Dubai provided all the infrastructure, liberalised investment rules, built confidence and luxury, and made everybody believe that investment in Dubai is safe,” he stated.
However, he noted that recent events have challenged this perception, showing how quickly assumptions about safety can change. “In less than a month, all those investment theories and practices were shaken to their roots,” Shehu said. He described the situation as a lesson for investors and financial analysts, urging them to reconsider how they approach risk management.
Shehu advised that investors should not focus solely on profits but also prepare for potential losses. “The bulls, bears, and stags must always remember not to think of returns alone, but make adequate provisions for the downside and eventualities,” he said.
He further cautioned that investment environments can harbor hidden risks. “…investment pools harbour hidden reptiles waiting for an investment prey,” Shehu warned. He concluded that the Dubai experience demonstrates that there is no completely safe investment anywhere in the world. “From the current Dubai experience, there is nothing like safe investment. All investments carry maximum risk,” he said.
Looking ahead, Shehu noted that Dubai may need to adjust its strategy after recovering from current challenges. “When Dubai recovers from the current shocks, it will surely think wisely and dilute its strategy,” he added, underscoring the importance of resilience and strategic adaptation in investment planning.
The commentary serves as a reminder to investors globally that even the most established investment destinations carry inherent risks, and prudent risk assessment and contingency planning remain essential for long-term financial security.
