Majority of UAE investors optimistic about stock market and business outlook: Survey

Dubai: Majority of UAE investors are optimistic about stock market and business outlook for the next six months, as they endorsed their support for sustainable investment, according to a study by UBS, a global wealth management firm.

While a vast majority (93 per cent) of UAE investors favour sustainable investments in their portfolios, the study showed sustainable investment is highly important for UAE’s investors’ portfolio strategy with over three-quarters of investors expect sustainable investing returns to match or exceed traditional investing returns.

The survey, which polled 3,004 investors and 1,202 business owners across 15 markets globally, which includes the UAE, found that 93 per cent of UAE investors consider sustainable investment a highly important part of their portfolio strategy, driven by returns and values.

Likewise, a majority of investors expect SI returns to match or exceed those of traditional investments with 69 per cent seeking advice on increasing their portfolio allocation.

Based on the feedback from respondents, smart mobility, education, gender equality and healthcare were listed as the top themes in sustainable investment among UAE investors.

When polled about the stock market, 88 per cent of the UAE investors said that they are optimistic about the stock market for the next 6 months, and 35 per cent of the UAE investors are planning to increase their investments in the stock market.

Optimistic outlook

“Investors continue to remain optimistic about the economy and markets, and many plan to increase exposure to risk assets, including a focus on sustainable investments,” said Tom Naratil, President of UBS Americas and Co-President of UBS Global Wealth Management.

“With climate change a top concern for investors, many will focus on the progress made at the UN Climate Change Conference (COP26) and any agreed new measures.”

The survey shows that 77 per cent of the investors in the UAE that were surveyed are optimistic about their own businesses and 38 per cent are planning to grow their workforce by hiring new candidates. Moreover, as a response to the challenges 74 per cent of business owners in the UAE are offering more flexible working hours, more employee benefits (60 per cent), and offering new or larger year-end / spot bonuses (66 per cent) to their workforce.

“Throughout the pandemic, business owners faced many workforce challenges and had to adjust to meet the needs of their employees and customers,” said Iqbal Khan, President of UBS Europe, Middle East and Africa and Co-President of UBS Global Wealth Management.

“It’s encouraging to see that a majority of business owners remain optimistic and interested in hiring and investing more in their companies over the next 12 months.”