Published: 28 January 2026
For most, a long-term investment strategy will lean on the stable and familiar – think real estate, index funds, and diversified ETFs designed to compound slowly over time. This approach is ideal for steady growth and wealth preservation, but sometimes, it’s the higher-risk plays that yield the greatest returns. Whether you’re a high-net-worth investor or a novice trying to put some hard-earned savings to work, here are four high-risk investment categories to consider if you’re looking to push beyond the conventional. Regardless of risk tolerance, the oldest adage still applies: never invest more than you can afford to lose.
1. Collectibles and Alternative Assets
Compared with stocks, bonds, and ETFs, collectibles are what some consider the ‘fun’ investments – passion projects that blur the line between personal taste and portfolio strategy. In the art world, demand for blue-chip names remains incredibly strong. In November 2025, Sotheby’s sold Gustav Klimt’s Portrait of Elisabeth Lederer for a record-breaking $236.4 million at its inaugural Breuer auction series in New York – the most expensive work of modern art ever sold at auction, and one of the highest prices achieved globally that year.
Demand in the classic car market also remains strong, with the total market value projected to reach $77.8 billion by 2032. In 2023, RM Sotheby’s sold a 1962 Ferrari 250 GTO for $51 million – a reminder that appetite for rare, limited-production models hasn’t waned. Interest is also rising in modern supercars, particularly low-mileage examples from the hybrid era (notably: Ferrari LaFerrari, McLaren P1, and Porsche 918 Spyder).
As ever, high jewellery remains closely tied to the preservation of wealth and the pulse of global sentiment. Coloured diamonds, vintage Cartier, and signed pieces from heritage houses still consistently draw strong bids at auction, often surpassing estimates in Geneva, New York, and Hong Kong.
Still, for all their cultural cachet and long-term potential, collectibles come with a fundamental caveat: liquidity. Unlike publicly traded assets, these investments can take months or even years to exit, often requiring a very specific buyer and the right market conditions. Value is also highly subjective, with premiums shaped by provenance, rarity and presentation. For seasoned collectors, that’s part of the experience, but for newer investors, it’s a risk worth weighing carefully.
2. Cryptocurrencies and Digital Assets
Once the domain of fringe investors and internet-native tech enthusiasts, cryptocurrency has gone from financial experiment to near-mainstream asset class. Bitcoin, the first ever cryptocurrency, was created in 2009 as a decentralised alternative to fiat (traditional) money, following the 2008 financial crash. As a store of value, it has experienced extreme price swings over the years, jumping from $0.10 in 2010 to approximately $100,000 by 2025.
Today, cryptocurrencies are more mainstream than ever. Multiple ETFs tracking both Bitcoin and Ethereum are now actively traded on major exchanges, and traditional asset managers – from BlackRock to Fidelity – offer digital asset products to their clients. That institutional shift has helped pull Bitcoin and other cryptocurrencies closer to the realm of regulated, portfolio-worthy assets.
Regulatory frameworks are also catching up. The UAE’s VARA (Virtual Assets Regulatory Authority) continues to lead the region with clear licensing pathways and investor protections, while Europe has rolled out a comprehensive legal framework – the Markets in Crypto-Assets (MiCA) regulation – to better protect crypto investors and standardise oversight across the EU. It’s far from a finished process, but the infrastructure is strengthening.
Still, cryptocurrency remains one of the most volatile and risky investments one can make. Price movements are sharp and often sentiment-driven, and hacks, regulatory clampdowns, and sudden liquidity issues continue to rattle even well-known platforms. For those willing to stomach the volatility, digital assets can be a compelling high-risk allocation, but they require a level of attention and conviction that passive investments do not.
3. Off-plan Real Estate
Real estate is often viewed as a low-risk, stable investment, but that largely depends on what you buy and when. Buying property off-plan – i.e. before construction or completion – tends to carry higher risk, but also the potential for higher returns. Prices are usually lower, payment plans are more flexible, and in a rising market, capital values can climb significantly by the time of handover.
When timed well, off-plan investments can outperform ready resale, particularly in fast-developing areas or when tied to branded developments. They’re not however, without challenges. Delays, shifting market conditions, and in rare cases, incomplete delivery can impact both liquidity and resale value. There’s also no rental income during the construction period, which can make the holding phase feel longer than expected.
These risks can be managed (and outweighed) with the right support. At Dubai Sotheby’s International Realty, clients gain access to exclusive launches with prime developers, early-phase pricing, and clear advice on which projects are likely to retain value over time. Off-plan isn’t for every investor, but with the right guidance, it can be a strategic way to gain early exposure to a high-growth market.
4. VC and Angel Investing
For investors with a higher risk appetite and a long enough runway, venture capital and angel investing offer something few asset classes do: the chance to get in early. Rather than buying into public companies, VC and angel investors back startups and private businesses at a much earlier stage, typically before profitability.
The upside can be substantial, and a well-timed seed investment can multiply many times over. The catch is that the failure rate is high, and capital is usually locked in for years before any returns are realised. In the UAE, the private investment landscape has grown quickly, with more local VC funds, family offices, and angel syndicates active in sectors like fintech, sustainability, and AI. For expats, it also ties into long-term planning: investing in or founding a UAE-based company worth AED 2 million or more may qualify you for the 10-year Golden Visa, offering greater freedom and residency stability.expat investment options
As a high-risk investment, VC and angel investing demands patience, conviction, and access to the right network, but for those willing to take calculated bets on the future, the returns can be deeply rewarding – both personally and financially.
