Compounding Explained by Raaed Sheibani from Stashaway

Raaed Sheibani of StashAway explains how accessible, curated investing, disciplined habits, and education can help anyone build long-term wealth in the UAE and beyond.

In the latest episode of The Dollar Diaries, Raaed Sheibani, Country Manager (UAE) at StashAway, sits down to unpack practical investing wisdom, the evolution of fintech in the UAE, and how ordinary people can build lasting wealth without getting lost in jargon or analysis paralysis. Drawing on a career that spans early-stage startups, McKinsey consulting, growth and operations leadership, and now scaling a major digital wealth platform in a new market, Raaed blends firsthand operational insight with a clear philosophy: investing should be accessible, simple, and geared toward improving people’s lives.

Why Accessibility Matters?

One of the core themes of the episode is accessibility. Raaed explains that StashAway’s mission is to democratize investing — to remove gatekeepers and lower barriers so anyone can get started. A concrete example: StashAway has no minimum investment requirement. The platform allows users to begin investing with as little as $1, which matters not because the dollar itself is transformational, but because it removes the psychological hurdle many potential investors face. Too often people delay starting because they feel they don’t have enough capital or fear making mistakes. Removing the minimum shifts the conversation from “I need to save up to invest” to “I can begin now and build the habit.”

Raaed also emphasizes curation as a tool for accessibility. Brokerage platforms often present dozens of seemingly similar options for the same exposure — for instance, multiple S&P 500 ETFs differing by domicile, expense ratio, and liquidity. For new investors this creates analysis paralysis. StashAway tackles this by curating and recommending a single, thoroughly-researched ETF per exposure, then actively monitoring and switching when a better option appears. That removes decision friction for users while retaining professional oversight. Importantly, Raaed clarifies that this is not a passive “pick once and forget” approach: StashAway’s in-house investments team monitors chosen ETFs and can substitute alternatives to ensure clients maintain exposure to what the team believes is the best available option.

Financial Fundamentals First

Another strong throughline is Raaed’s emphasis on foundations. He repeatedly returns to a few simple but essential rules: pay off high-interest debt first, build an emergency fund, and automate recurring investments. Debt, particularly high-interest consumer debt like credit cards, can negate any market returns you hope to achieve. Raaed’s guidance is pragmatic — eliminate debt first so that the interest burden doesn’t erode your long-term progress.

Equally important is the safety net. Raaed advocates a safety net that covers four to twelve months of essential expenses, tailored to individual circumstances (the common rule of thumb being around six months). The point here is psychological as much as financial: without a safety net, market volatility becomes a source of stress. Investors without such a cushion may be forced to liquidate at the worst possible moments or stop contributing — both outcomes that harm long-term returns.

Once those foundations are in place, Raaed urges automation. Regular, automated contributions harness the power of dollar cost averaging and compounding. In the episode he provides a useful mental model: starting early drastically reduces the monthly savings required to reach retirement targets. For example, beginning at 25 to reach $1 million by 65 might require a manageable monthly contribution; starting a decade later could double that monthly requirement. It’s a clear illustration of the asymmetry and potency of compounding.

Product Breadth and Personalization

StashAway’s product suite, as Raaed explains, is intentionally broad. There are managed general investing portfolios for users who want a hands-off approach; tools for those who prefer to build DIY ETF portfolios; cash management solutions that offer better rates than traditional savings accounts; and private market products like private credit, with private equity and private infrastructure slated to launch. The breadth supports different investor goals and horizons: from short-term, low-volatility objectives to long-term wealth building and access to alternative asset classes for higher-net-worth clients.

For clients with higher balances, StashAway has created StashAway Reserve: a high-touch offering for accounts with $100,000 or more. Each Reserve client receives a dedicated wealth advisor, semi-annual financial planning sessions, and access to private market opportunities pooled across clients to secure institutional fee rates. Raaed underscores that StashAway charges a flat management fee rather than performance-based fees like “2 and 20.” This choice reduces the platform’s conflicts of interest and aligns incentives: if investments perform well, the client captures the upside.

Education-as-a-Product

Raaed repeatedly frames education as a product feature — not an afterthought. Since its early days in Singapore, StashAway has prioritized financial education through the StashAway Academy, workshops, and public financial wellness sessions. In the UAE, StashAway joined DIFC’s One Million Learners program to reach wide audiences and collaborate with banks, payment networks, and government entities. Raaed believes collective efforts are more effective than isolated initiatives: by pooling resources and platforms, the industry can accelerate financial literacy across demographics.

Recognizing shifting attention patterns, StashAway is pivoting toward bite-sized and gamified content to meet modern learners where they are. The plan is to create short, engaging modules that cut jargon and reduce time commitment while still conveying actionable concepts. Raaed’s approach reflects a broader insight: delivering education that fits people’s lifestyles is often the missing link in adoption.

Local Context and Product Adaptation

Expanding into the UAE required StashAway to adapt to local preferences and cultural nuances. Raaed highlights several local tendencies: a strong cultural affinity for real estate and gold, and specific regulatory and market dynamics. The product response includes building Sharia-compliant managed portfolios (planned launch August 2025) and ensuring the platform covers Sharia ETF options today. Tackling product-market fit in a new region means balancing global product principles with localized offerings and communication strategies.

Raaed’s day-to-day as country manager balances setting strategic direction, aligning internal teams, executing go-to-market plans, and listening to client feedback. He stresses the importance of local insights to refine product decisions rather than relying solely on a headquarters’ blueprint. That feedback loop is vital to ensure offerings remain relevant and competitive in a region with unique preferences and evolving market structures.

Private Markets and Responsible Access

A recurring theme is responsible inclusion in private markets. StashAway is lowering traditional barriers by pooling client capital to access private credit, private equity, and infrastructure investments with lower minimums and institutional fee pass-throughs. This expands access beyond the ultra-wealthy and opens alternative assets to a broader base.

However, Raaed tempers enthusiasm with caution: private markets are illiquid and typically long-dated. Angel investing follows a similar narrative — while it offers the upside of asymmetrical returns, it’s illiquid, high-risk, and should only be a small, discretionary slice of a well-diversified portfolio. He advocates clear thresholds and mental framing: only commit capital you won’t need for many years and ensure such allocations represent a small portion of your overall net worth.

Mindset and Practical Takeaways

Raaed’s advice consistently returns to practical, habit-oriented guidance. Three habits stand out:

• Prioritize capital preservation: Clear high-interest debts first and protect your essential expenses with a safety net. This stabilizes your financial base and reduces the emotional friction that leads to poor timing decisions.

• Invest regularly and automate contributions: Make investing routine and low-friction. Regular investments reduce the temptation to time markets and let volatility work in your favor through dollar cost averaging.

• Learn but avoid paralysis: Seek curated sources of truth and bite-sized learning. Too much information, conflicting opinions, and jargon can stall decisions. Use curated advice to start, then iterate as you learn.

Beyond habits, Raaed recommends founders and startup leaders focus first on product-market fit and then on unit-level economics. In the fintech boom, many firms prioritized growth without ensuring sustainable unit economics; durable businesses combine product-market fit with a path to profitability.

Looking Ahead

Raaed shares a forward-looking optimism for both StashAway and the UAE market. StashAway plans to expand its guidance features, roll out Sharia-compliant managed portfolios, launch private equity and private infrastructure for qualified clients, and revamp its education platform. Regionally, Raaed notes the UAE’s growing public markets activity and the potential for deeper buy-side/sell-side institutional development over time. He believes the market will increasingly value managed advisory solutions as consumers become busier and seek curated, trustworthy guidance.

Final Thoughts

This episode offers a measured, human-centric view of modern investing that balances aspiration with prudence. Raaed Sheibani’s message is less about chasing speculative gains and more about building durable habits and structures that let compounding work for you. Whether you’re a beginner who needs permission to start with small sums, a seasoned investor exploring private markets, or a founder building your next company, the episode provides cogent frameworks: prioritize financial resilience, automate discipline, seek curated guidance, and keep learning in manageable, actionable ways.