Moreover, the report states that almost half of the respondents have never sought advice on financial planning from a UAE based financial adviser or insurance broker.
Additionally, 47% of the respondents are shown to be having no life and/or critical illness cover in place, whether provided by their employer or arranged personally.
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The investor attitudes index for the UAE has remained stable at 15 points, just three points below its highest ever level, with the indices for Hong Kong and Singapore having jumped considerably and standing at 15 and 17 points respectively.
On the findings, Matthew Waterfield, general manager, Middle East & Africa at Friends Provident International said, "The stability in the Friends Investor Attitudes Index for the UAE reflects the growing confidence among UAE investors in their local market."
"Unlike Hong Kong and Singapore; where both the index and investor sentiment seems to fluctuate from wave to wave of research; UAE investors generally are demonstrating a balanced, longer term approach to their investment planning, and do not appear unduly worried about short term market fluctuations."
As far as asset classes are concerned, the preference for investing in property stands at its highest ever level, with a score of 17, after having started at -2 in the initial wave of research (Q2/2010).
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By GlobalDataThe preference for investing in collectibles has also rebounded this wave, currently standing at 7; having dropped from a high of 10 points in wave 6 to a low of just 2 points in wave 7.
In terms of investment strategy also, the percentage of investors planning to invest for more than three years has fallen from 31% in wave 7 to 28% in this wave.
The number of investors not investing due to market uncertainty also continues to decline and stands at just 7%; the lowest since the investor attitudes research began.
Confidence in both the current and future UAE investment market has improved significantly, with 44% of respondents viewing the current market as an improvement on the market six months ago. Only 16% of respondents think that the current market is worse than six months ago; again the lowest since research began in Q2, 2010.
According to the FPI report, an individual living in UAE, regardless of their household income and family situation, must seek professional advice that is aligned to their current situation, attitude to risk and investment time horizon.
Wealthbriefing also agrees with the view of the report since in the age of global meltdown, it will not be long before regions like the Middle East will also be affected by the crisis.
Lest an investor be caught off guard in the wake of a financial crisis, it is always wise to have a proper financial planning, preferably taking the help of a good financial advisor.
Though information is freely available on the internet, the market provides a vast range of financial instruments by both small and large investment firms and banks that would be difficult for an individual to keep track of or analyze.
A financial advisor makes the work of client easier in terms of first understanding the assets and goals of the client and then suggests a diversified portfolio of various investments to meet the goal.
In spite of the above, after zeroing in on an investor, it is essential for an investor to monitor the portfolio in order to review the performance and suggest changes if necessary. Additionally, periodic statements also must be asked from the advisor to keep one updated regarding ones investments.
