My Dubai Salary: ‘I make Dh10,000 passive income a month from businesses’

Ebaad Naeem, an Indian working in Dubai’s facilities management industry, has set a target to increase his passive income by so much that it will one day cover his family’s basic expenses.

He pools money with his friends and family to collectively invest in property and businesses.

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Mr Naeem, 34, comes from Aligarh in the north Indian state of Uttar Pradesh and lives in a villa in Al Garhoud, Dubai, with his wife, who works in the education sector, and their two children.

He has lived and worked in Dubai since 2013 and holds a bachelor's degree in mechanical engineering and a post-graduate degree in facilities management from Heriot-Watt University, Dubai.

What was your first job and salary?

I worked for a year in India in facilities management for a monthly salary of 20,000 Indian rupees ($231). Then I moved to the UAE because there is more scope for such jobs here.

My first job in Dubai was in a facilities management service provider company on a monthly salary of Dh3,500 ($953). I worked there for two years and then moved to a luxury watch retailer for a monthly salary of Dh12,000. I was promoted and my salary went up to Dh16,000 a month.

Tell us about your current role and salary.

I joined my current employer as a facilities manager in 2023 and currently earn Dh28,000 a month.

Do you have considerable savings?

My wife has a monthly salary of Dh17,000 and we collectively earn Dh45,000 a month.

We have built an emergency fund that can sustain our current standard of living for at least six to 12 months. But our main focus is on investing, so we don't leave money idle in the bank.

What asset classes do you invest in?

It’s varied. We invest in stocks and exchange-traded funds through the investment platform Sarwa. We have invested $20,000 in stocks and ETFs, and invest a small amount every month.

I am part of a group of friends and relatives who collectively invest in properties and businesses. This allows us to distribute the risks and financially empowers us to pursue bigger investing opportunities.

We have invested in an off-plan project in Damac Hills 2 worth Dh3 million and I own a 15 per cent share of this property. We pay 1 per cent per month, of which I contribute Dh4,500.

We have also invested in two beauty salons, which are offering me good returns, and buy-to-let properties in Business Bay and Town Square. I have also invested Dh150,000 in SmartCrowd, a property crowdfunding platform.

Overall, I have invested about Dh500,000 in these businesses to date and earn Dh10,000 a month in passive income from them.

My goal is to become financially independent, so I don’t have to depend on a nine-to-five job to meet my current monthly expenses of Dh20,000. I wish to generate more passive income, which will cover my basic needs and give me the freedom to pursue more investment opportunities.

Do you have any debt?

I took a car loan last year. I have nine or 10 credit cards but I always pay them off in full every month. I use the benefits offered by these cards such as cashback on fuel or groceries, valet parking and gym access. I use them very wisely. Sometimes, they offer loans at a minimal interest rate, so I take out money and invest it in an asset class that offers me better returns.

Have you ever inherited a sum of money?

My father is supportive and helps me out occasionally. When I needed money to invest in the salon business, he lent me half the amount. I set aside money from the profits to repay him.

Growing up, were you taught how to handle finances?

Not really. I learnt it the passive way by observing how my parents dealt with money and managed the household expenses. I am not from a very affluent family and my father was a government employee whose focus was on educating my sister and me.

He taught us not to waste money and save instead. Even now, he tells me to save money but I tell him that times have changed and it’s more prudent to invest.

What are your major monthly expenses?

House rent is a major expense and amounts to Dh9,000 a month. We pay Dh5,000 to a full-time maid and a part-time nanny, Dh2,000 for my daughter’s nursery, and Dh6,000 on groceries, utility bills and other miscellaneous expenses.

How do you budget your salary every month?

I try to keep money aside for fixed expenses. For instance, when it comes to rent, I will save the money for it consistently every month rather than try to have it ready only when the next rent cheque is due.

Also, I try to occasionally invest the rent funds in Sarwa for one or two months and get a return of, say, Dh2,000 or Dh3,000.

Have you started saving for retirement?

I’m trying to build my passive income so that it will lead me to financial independence.

I haven't given myself a deadline of how many more years I need to work, but I'm working hard towards getting my passive income to where I want it to be.

What do you spend your disposable income on?

I’m not a spendthrift but like to spend on vacations, staycations or go to nice hotels. We also spend on things that we love, which may not be a necessity. For instance, last year, I bought a new Toyota Land Cruiser, which has a good resale value. This helps me maintain a balance. I can fulfil my dream to drive a big, new car, but it’s not a big financial burden.

Do you worry about money?

No. I believe money will come. For instance, although I'm driving a Land Cruiser now, if I need to drive an old, second-hand car tomorrow, I don't mind. Or if I must downgrade from a villa to a small one-bedroom apartment, I don't mind since I am very flexible.

I am OK not to have the same standard of life as I currently do. What is more important to me is peace and happiness.

What are your best money-saving tips to offset inflation?

Invest in something. It can be in real estate, stocks, ETFs, a business or gold. Any form of investment is good to beat inflation, the worst thing you can do is to park your money in the bank.

What are your financial goals?

At the start of the year, I give myself a goal that by the end of this year, I have to increase my passive income by a few thousand dirhams. Then, I work backwards to see how much more I need to save, where I need to cut down on expenses and invest more.

I'm slowly working towards my long-term goal to be financially independent.

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