Dubai: High-net-worth individuals and business owners globally are optimistic and looking for opportunities to invest as markets rebound in 2019, according to UBS Global Wealth Management’s new quarterly Investor Sentiment survey.
The survey, which polled more than 3,600 wealthy investors and entrepreneurs in 17 countries, including the UAE, points to a rebound in bullish sentiment in the first three months of 2019 as markets recovered from the late-2018 slump. While respondents held a large proportion of their assets in cash, many expressed willingness to invest it, results show.
“It is encouraging to see such optimism paired with a strong desire to invest from UAE respondents. The findings confirm our view that the UAE should be considered a growth region for our business.” Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa at UBS Global Wealth Management said.
With 83 per cent of UAE investors optimistic about the local economy, and 78 per cent expressing optimism on the global economy, the Gulf state registers as the most bullish of all regions surveyed. UAE investors hold similarly optimistic views on equities, with 80 per cent of respondents in favour of local stocks. They are also among the most likely to have plans to invest more (62 per cent), second only to Latin American investors (66 per cent).
Investors globally were also bullish on stocks, albeit not as bullish as UAE investors. Fifty-six per cent expressed optimism on stocks in their own regions versus 49 per cent on stocks globally. In addition, 74 per cent saw recent market volatility as an investment opportunity, compared with 67 per cent who were still concerned about volatility witnessed in the fourth quarter of last year. Forty-two per cent of investors planned to invest more in the next six months versus 17 per cent who planned to invest less. In the UAE, investors’ top concerns were the possibility of a global trade war, market volatility and inflation.
Paula Polito, Client Strategy Officer at UBS Global Wealth Management, says: “Cash is a safe asset for a liquidity strategy, but a risky one for longevity. Right now, we see high levels of cash globally. This is a good time for investors to consider a more diversified portfolio.”