The report shows a significant increase in the preference for property investing, where property is now the preferred asset class for UAE respondents – more so than gold, which has also seen improved sentiment.
The report also shows an improvement in confidence for investing in cash and money/currency markets, with only collectibles falling in popularity since the last edition of the report.
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Overall, as in Hong Kong and Singapore, UAE investors adopt a balanced approach to investing (41%). However, regardless of income, UAE investors are almost twice as likely to follow a capital preservation strategy (36%) than Hong Kong (18%) and Singapore investors (19%).
FPI is also conducting survey on its three principal markets, Hong Kong, Singapore and the UAE, which focuses on wealthier investors in these markets. In the UAE, wealthier investors are defined as having US$4,000 per month disposable income and/or a lump sum of US$100,000 to invest.
In detail, the report shows that UAE investors are more than twice as likely to diversify their investments by asset class (35%) rather than geographically (16%).
The report, compiled from a survey of wealthy, UAE-based expatriate respondents, shows that more than three-quarters (76%) of investors believe the investment market has improved over the last six months, and the same number believe that markets will continue to improve over the next six months.
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By GlobalDataWorryingly, despite improved investor confidence, the report shows that even among the more affluent respondents, for the most part, investors have no clear idea of how much they need to save for their retirement.
Perhaps even more worryingly, the survey revealed that 22% of respondents have no life insurance, and 27% don’t have any critical illness cover. Of those respondents with life insurance 41% have cover of less than AED500,000 and 45% of respondents with a critical illness plan have less than AED500,000 cover.
FPI general manager of Middle East and Africa, Matthew Waterfield, said: "It is interesting – although not entirely surprising – to see the much improved preference for investing in property, which has been building over the last few editions of the report. Sentiment towards property investment is a fairly reliable barometer of the level of confidence in the local investment market."
