Public affairs commentator Mahdi Shehu has cautioned investors to exercise vigilance, noting that recent events in Dubai demonstrate that no investment is completely risk-free.
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In a post shared on X on Wednesday, Shehu highlighted that over the past three to four decades, Dubai has earned a reputation as a global investment hub, attracting investors from around the world.
“In the last 30-40 years, Dubai became famous as the ‘investment darling’ of the world,” he said.
He noted that many investors saw the city as a safe haven due to its infrastructure, liberal investment policies, and strong 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, Shehu said recent events have challenged that belief, noting that the assumptions about safety in investments can quickly change.
“In less than a month, all those investment theories and practices were shaken to their roots,” he said.
He described the situation as a lesson for investors and financial analysts, urging them to rethink how they approach risk.
“This is a challenge to investment experts, analysts and spectators,” he added.
According to him, investors should not focus only on profit but also prepare for possible 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 warned that investment environments may carry hidden risks.
“…investment pools harbour hidden reptiles waiting for an investment prey,” he said.
Shehu concluded that the experience shows 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.
He added that when Dubai recovers from the current challenges, it may need to adjust its strategy going forward.
“When Dubai recovers from the current shocks, it will surely think wisely and dilute its strategy,” Shehu said.
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