Money & Me: ‘My best investment is an Abu Dhabi property purchased at the height of Covid-19’

Christoph Koster, CEO of digital Islamic community bank ruya, adopts a balanced approach to investments

Christoph Koster, chief executive of digital Islamic community bank ruya, lives a balanced lifestyle and does not get too hung up on material purchases. Antonie Robertson / The National

Christoph Koster, chief executive of UAE’s digital Islamic community bank ruya, considers a house he purchased in Yas Island, Abu Dhabi, at the height of the Covid-19 pandemic his best investment since it appreciated in value considerably.

Having grown up in Germany, his parents instilled in him the value of living below one’s means and he continues to abide by it. Mr Koster adjusts his lifestyle according to his income.

Ajman-based ruya has been active in the market for just more than a year, he tells The National. The lender launched with retail banking and then opened up SME banking in November. So far, ruya has onboarded 60,000 customers in one year.

“At the current rate, we plan to on-board about 100,000 new customers every year. We became the first Islamic bank globally to enable customers to buy and sell virtual assets, including Bitcoin, directly on the banking app in partnership with digital assets infrastructure provider Fuze,” he says.

Before his role at ruya, Mr Koster served as the chief operating officer at a G42 joint venture, where he was responsible for building the business unit from its incubation phase. Before G42, he was vital member of the executive management team at the Abu Dhabi Investment Office.

He also had a stint with Emirates NBD and began his career at consulting company Roland Berger.

Mr Koster is a business graduate from the UK and has spent about 20 years in banking across Europe and the Middle East. The German, 41, has been in the UAE for 15 years and lives with his family on Dubai’s Palm Jumeirah.

Did wealth feature in your childhood?

I'm a big believer in starting financial education early on. My parents instilled in me a habit of always living below my needs, and to always save and invest early on. This is something that I'm trying to instil in my children as well.

How did you first earn?

My first job was in Germany at the age of 14 when I started working with a local roofing company. I was tiling roofs in the neighbourhood. Throughout my teenage years and university, I always earned with jobs on the side. It is important for children and young adults today to earn and learn to appreciate the value of labour.

Any early financial jolts?

As a young adult or as a student, you don't live a lavish life. But I think it's important to live within your means. The most important thing is to be able to adjust your lifestyle according to your income. This varies across stages in life and you have to be flexible.

I was always able to adjust my cost of living and my living standards according to the means that I had available.

How do you grow your wealth?

I am a big believer in a balanced approach to investments. It is very important to have a balanced portfolio of investments, especially long-term ones. I don't believe in short-term speculative trading. I'm more of a believer in long-term, structured and frequent wealth-building. I also invest in a diversified portfolio of stocks, exchange-traded funds, Bitcoin, real estate and gold.

Are you a spender or a saver?

A balanced and moderate approach is the best. So, I try to enjoy life within the means that we have, while building sustainable and multi-generational wealth for the future.

Have you been wise with money?

I don't have any regrets. I've lived within my means and built a life for our family with what I have available. I don't think I’m missing out on anything, nor have we made obvious mistakes, so I'm generally content.

What has been your best investment?

We were fortunate enough to invest in real estate in the UAE, and that has appreciated quite a bit, especially over the past couple of years. We took a bit of risk and bought a house in Yas Island, Abu Dhabi, at the height of the pandemic, but at the bottom of the market in late 2020. We lived in this house for about three-and-a-half years.

Any cherished purchases?

I am not materialistic, so, I don't have any cherished purchases. For us, it's about living a balanced lifestyle and not to get too hung up on material purchases.

Any financial advice for your younger self?

It would be to have an even more structured approach to investment. I would advise every young person to start as early as possible with regular, structured investments. Even if it's just Dh50 a month, it grows and it compounds over time. People tend to underestimate the power of time. No amount of money is too small to be invested. The earlier you start with whatever you have available, it will grow over time. It’s best to invest in a diversified basket, diversified both from an asset class and geographical point of view.

What are your financial goals?

The ultimate goal that we strive for is financial independence, to be able to reach a point where you have accumulated enough income streams that are independent of your day job to be able to finance your cost of living. That is the ultimate goal, which for most people is very hard to achieve at least until they've reached pension age. I haven't achieved it yet.

Christoph Koster advises all young people to start regular, structured investments as early as possible. Antonie Robertson / The National

What luxuries are important to you?

Time is the ultimate luxury for me and for my family. I'm trying to spend as much time as possible with my family and friends, because time is the most limited and scarcest asset that we have, and that, for me, is the ultimate luxury.

How do you feel about money?

Money is a means to an end. It is a form of transaction. Money shouldn't be the end goal or the objective in life. It is a means to your objectives and goals in life. Money doesn't buy happiness, but it certainly takes away some of your worries, if you are able to live within your means.