UAE more attractive for investments than US, Europe: UBS Survey

By Rahul Vaimal, Associate Editor
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A recent survey by a leading global wealth manager shows huge majority of investors view UAE as a region with interesting investment opportunities.

As per a new Investor Sentiment study conducted by the global wealth manager UBS, 87 percent of investors in the UAE consider changing their portfolios before the US election, while globally only 72 percent of investors are planning to make such a switch.

Among the survey participants, 83 percent think of the UAE as an attractive spot for investment opportunities whereas only 68 percent choose the US and Europe.

The study by USB was conducted among more than 4,000 participants which included investors and business owners across 14 markets globally.

The UAE-based respondents mostly consider investing in 5G networks, hedge funds and green recovery in the coming six months.

The survey results suggest that about 78 percent of the UAE investors plan to make further changes based on the result, while 68 percent have hopes about regional stocks on a short-term basis within the coming six months.

Investors prioritize yield in their portfolios, with 61 percent expecting an increase in yield over the next six months and 30 percent planning to reduce the level of risk in their portfolio.

Tom Naratil, president of UBS America and co-president of UBS Global Wealth Management, said the current market volatility and political uncertainty has added to the need for investment advice for clients which was already rising due to the pandemic.

This survey reflects the need among investors for advice while the US election is a unique opportunity for wealth managers to attract clients and provide them with guidance during an uncertain time, Mr. Naratil further added.

Iqbal Khan, co-president of UBS Global Wealth Management, said amid uncertainty over the US election and the pandemic investors have started trusting their own region more than the world at large.

Ali Janoudi
Ali Janoudi
Head of Middle East & Africa – UBS

“The US elections are a global event with repercussions across the globe, including in the Middle East. UAE investors are watching closely and the vast majority consider portfolio changes both ahead and after the elections, depending on results. Clearly, there is a strong demand for investment advice.”

Over the coming six months, 66 percent of investors globally are considering allocations to the healthcare sector, while 62 percent opted for 5G networks and 56 percent plan to invest in a green recovery.