A Senior Investment Advisor’s Perspective on Whisky as an Asset Class
TL;DR: Why Whisky has Gained Ground as a Smart Investment
- Global whisky market forecast to reach $125 billion by 2032
- Whisky offers an average of 11%+ annual returns.
- A tangible asset with no correlation to traditional financial markets
- No Capital Gains Tax since whisky is classed a wasting asset, keeping it tax-free
- Increasing demand and low supply fuels price growth
- Ideal for high-net-worth individuals seeking exclusivity, scarcity and confidentiality in their invesment.
Investing in Passion: Why Whisky Appeals to the Modern Investor
Whisky investment isn’t exactly new to me. I’ve followed it quietly over the years, more out of curiosity than anything else at first. It sat somewhere between a personal passion and a professional interest. But lately, I’ve noticed more and more clients bringing it up and its not just collectors or enthusiasts, but thoughtful investors looking to diversify their portfolio. And it makes sense. When an asset combines character, craft, and consistent returns, it’s worth paying attention to.
Alternative investment solutions such as whisky are no longer niche. They are becoming increasingly mainstream, particularly among expats in the UAE who seek diversified portfolios and strategic, tax-efficient opportunities.
According to the Knight Frank Wealth Report, rare whisky outperformed other passion assets, including classic cars, art, and wine, appreciating by 586% between 2009 and 2019.
So why is this liquid gold becoming such a hot topic as investment? Let us take a closer look.
The Whisky Market Boom: A Look at the Numbers
The global whisky market is currently valued at around $70 billion, and forecasts suggest it will rise to $125 billion by 2032. The resurgence of distilleries worldwide, from Scotland and Ireland to Japan and India, has ignited investor interest.
This growth has made whisky cask investment a viable strategy for individuals, both regular people as well as HNW and collectors. Imagine buying a cask while the whisky matures, much like buying a home off-plan before its value increases.
Unlike stocks or bonds, whisky casks are a physical asset. This gives it an edge in volatile times. For anyone considering where to invest their money anywhere in the world, whisky offers both passion and performance.
How Whisky Investing Works
Here is a simplified overview of how whisky investment typically works:
- Assessment on budget and time-frame – how much are you looking to invest and how long do you intend to hold it?
- Whisky Portfolio presented and approved – a portfolio will be created according to budget and time-frame, which will be presented for approval
- Ownership Certificate – once approved and money is collected, a certificate of ownership will be issued
- Storage and Exit – the Whisky will be stored in bonded warehouses with insurance included, until you want to exit
- Exit Strategies – when you’re ready to exit, it can be sold to other investors, independent bottlers or in some cases back to the distilleries.
Tax Advantages: Why This Matters to Expats in the UAE
One of the major draws of whisky investment is its tax efficiency. In the UK and Ireland, whisky is classified as a “wasting asset,” which means it is exempt from capital gains tax.
For expats in Dubai, this creates a unique window. While Dubai income tax is zero, many clients still need to consider their home country’s tax rules. As an investment advisor in Dubai, I can help you navigate this cross-border complexity and structure your investments accordingly.
Bottles vs Casks: Which Offers the Better Investment?
Investors have two primary routes: rare whisky bottles or aging casks.
Bottles are easy to store and sell, but once bottled, whisky stops aging. They are also more vulnerable to fraud and often come with higher excise taxes.
Casks, by contrast, continue to age and gain complexity, often providing better long-term returns. They also offer more reliable provenance, since each cask has a unique registration number and is monitored in bonded warehouses.
While both have their place, casks tend to provide greater control, scalability, and potential profit when managed wisely.
Who Should Consider Whisky as an Investment?
Whisky investment is best suited for:
- Long-term investors willing to hold assets for 5–10 years
- Collectors or enthusiasts who appreciate craftsmanship and heritage
- High-net-worth individuals seeking exclusivity, scarcity and confidentiality.
- Expats looking for diversification and tax efficiency
As part of a diversified strategy, whisky can play a unique role. For those living in the UAE, it is an increasingly popular investment plan that balances risk, passion, and potential.
Final Thoughts: Is Whisky the Best Investment for Expats in the UAE?
Whisky is more than a conversation starter. It is a well-performing, data-backed, and emotionally satisfying asset. With no market correlation, strong historical returns, and tax advantages, it offers a compelling case for inclusion in your portfolio.
However, like all investments, it requires knowledge, patience, and strategy. That is where I come in. As an investment advisor in Dubai, I help individuals understand the complexities of alternative income investments and build bespoke financial roadmaps that include unique asset classes like whisky.
Let’s explore why whisky could be a valuable addition to your financial journey.
