๐ Gratuity Investment Projection Calculator
Compound growth ยท Inflation-adjusted returns ยท Multiple asset classes
Enter your gratuity amount
to see projected growth
over time
Fixed deposits โ guaranteed returns, zero market risk
UAE bank fixed deposits are the most common choice for expats receiving gratuity. The principal is guaranteed, returns are predictable, and the process is straightforward through any UAE bank.
| Bank | Term | Rate (p.a.) | Min. Amount | Notes |
|---|---|---|---|---|
| Emirates NBD | 12 months | ~5.50% | AED 25,000 | Auto-renewal option |
| ADCB | 12 months | ~5.25% | AED 10,000 | Flexi rates for larger deposits |
| First Abu Dhabi Bank (FAB) | 12 months | ~5.00% | AED 20,000 | Available for NRIs too |
| Dubai Islamic Bank | 12 months | ~5.00% | AED 10,000 | Shariah-compliant profit rate |
| Mashreq | 3โ24 months | 4.75โ5.75% | AED 5,000 | Flexible tenors |
โ Advantages
- Principal fully guaranteed โ zero risk of loss
- Predictable, fixed returns
- No investment knowledge required
- UAE banks not covered by deposit insurance but highly regulated by CBUAE
- Easy to open โ same bank where salary is received
โ ๏ธ Limitations
- Returns may not outpace long-term inflation
- Penalties for early withdrawal
- Rates will decline when interest rates drop
- Not ideal for long horizons (20+ years)
Index funds โ long-term wealth building
Index funds and ETFs tracking global markets (S&P 500, MSCI World) have historically delivered 7โ10% annualised returns over 20+ year periods โ the highest long-term returns of any mainstream asset class. UAE residents can access these through international brokers.
| Fund / Platform | Type | Historical Return | Access for UAE residents |
|---|---|---|---|
| Vanguard S&P 500 ETF (VOO) | US equity index | ~10% (30yr avg) | Interactive Brokers, Saxo |
| iShares MSCI World ETF | Global equity | ~8% (20yr avg) | Interactive Brokers, eToro |
| Vanguard Total World (VT) | Global diversified | ~7.5% (15yr avg) | Interactive Brokers |
| NASDAQ-100 ETF (QQQ) | US tech-heavy | ~13% (20yr avg) | Interactive Brokers, Saxo |
UAE real estate โ income + appreciation
Dubai real estate offers some of the highest rental yields globally โ typically 5โ8% net in established areas. Combined with capital appreciation, total returns can reach 8โ12% in strong market cycles. However, real estate requires significantly more capital and carries liquidity risk.
| Area | Avg Rental Yield | Entry Price (1BR) | Notes |
|---|---|---|---|
| Dubai Marina | 5.5โ7% | AED 1.1โ1.6M | High liquidity, established community |
| Business Bay | 6โ8% | AED 900Kโ1.3M | Strong corporate rental demand |
| Jumeirah Village Circle (JVC) | 7โ9% | AED 600โ900K | Most affordable entry point |
| Abu Dhabi (Al Reem Island) | 6โ8% | AED 700Kโ1.1M | Lower property tax, stable yields |
All projections on this page are for illustrative and educational purposes only. They are not financial advice, investment recommendations, or a guarantee of future returns. Past performance of any investment does not guarantee future results. Investment returns, inflation, and exchange rates can all vary significantly from the assumptions used here. The rates shown for UAE banks, index funds, and real estate are approximate historical or current estimates and may change at any time. Before investing your end-of-service gratuity, consult a qualified and licensed financial advisor. UAE Gratuity Check is not a licensed financial advisor and does not accept liability for investment decisions made based on this tool.
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