UAE investors feel confident about their region’s economic perspectives, with 85 percent expressing optimism for the current year, according to a new survey.
However, UBS’s new Investor Sentiment survey found that opinions are split on when life will return to normal in the UAE.
A slight majority of 51 percent think normal activity will resume before July while 49 percent of those surveyed believe it will not happen until the second half of the year.
Asked about their top concerns, UAE investors singled out Covid-19 (63 percent), followed by climate change (56 percent) and fear of a market downturn (55 percent).
In such uncertain times, a record nine out of 10 investors in the UAE said they needed more expert financial advice than ever.
They also said they see clear value in sustainable investing, with 86 percent stating that the topic is important to them and eight out of 10 expecting the same or even better return from sustainable investments when compared to more traditional portfolios.
Globally, the UBS survey said investors are increasingly optimistic about their regional economic outlook and the equity markets.
A majority of survey respondents (60 percent) have a positive economic outlook over the next 12 months, compared with 55 percent three months prior.
A record nine out of 10 investors in the UAE said they needed more expert financial advice than ever
On a global scale, over the next six months 61 percent of investors are increasingly optimistic about the stock market, up 6 percent globally over the past quarter. Investors expect the market to benefit from progress on Covid-19 vaccines (72 percent) and the potential impact of the US election results (62 percent).
Among business owners, 72 percent are confident in their own business over the next 12 months, up from 69 percent in the third quarter, due to business momentum (45 percent), vaccine progress (43 percent) and favourable monetary policy (40 percent). Nearly a third of business owners (32 percent) plan to hire workers, up from 30 percent three months prior. However, the proportion of business owners who plan to downsize increased as well, up 2 percentage points.
Tom Naratil, president of UBS Americas and co-president of UBS Global Wealth Management, said: “We are encouraged that confidence among investors and business owners is rising globally, despite uncertainty over Covid-19 and political issues. The decade ahead will present new opportunities, while geopolitical, economic and social challenges will remain. It is no surprise to see that eight in 10 investors tell us they need expert advice more than ever.”
Ali Janoudi, head of Wealth Management for the Middle East and Africa at UBS
Ali Janoudi, head of Wealth Management for the Middle East and Africa, added: “The fact that 9 in 10 investors in the UAE said they needed more financial advice now than ever clearly shows the challenges many are facing when navigating today’s volatile markets. At the same time, it also emphasizes the opportunity for our clients to seek expertise and rebalance their portfolios now so they are in pole position to profit from future market movements.”
UBS surveyed 2,854 investors and 1,151 business owners across 14 markets – Argentina, Brazil, France, Germany, Hong Kong, Italy, Japan, Mainland China, Mexico, Singapore, Switzerland, the UAE, the UK and the US.
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