UAE investors now prefer gold bars - less of cash

Dubai: Hold more gold - and less of cash.

High networth investors in the UAE are doing just that, with gold becoming a favoured part of their portfolios over the first six months of 2025. And they are doing it by having less of cash allocations.

In fact, “Cash allocations in UAE portfolios have plummeted to just 13% - the lowest globally and well below the 20% global average,” says a new report from HSBC’s 2025 Affluent Investor Report.

These investors are moving ‘decisively’ to put their cash to work. (The Dubai gold price is at Dh368.25 a gram for 22K. Bullion prices are trading at $3,294 for an ounce, once again slipping below $3,300.)

“The UAE data shows gold allocations rose by 5 points with 57% affluent investors planning to invest in gold—and nearly four in ten interested in tokenised gold,” the report adds.  

The findings reinforce what’s becoming clearer with each passing month – gold continues to retain its shine as the favoured asset. The investor could be putting in Dh1 million or Dh5,000, but the bottom-line is that these funds are going into gold.

“UAE investors are actively looking at alternative investments and gold as part of a diversified portfolio,” said Dinesh Sharma, HSBC’s Head of International Wealth and Premier Banking (IWPB), Middle East.

Also, “Our research shows that UAE investors are not only focusing on local opportunities like home ownership but are also embracing international diversification, with the US and UK among their preferred overseas markets.”

When it comes to gold, more UAE wealthy investors are channeling more investments into gold bars these days, according to the latest data from World Gold Council. Even when demand for jewellery and even investments in gold coins have dropped significantly.

“There are clear indicators of more of UAE’s high networth investors choosing gold bars as an investment choice,” said Andrew Naylor, Global Head of Public Policy at World Gold Council. “These investments could be actual purchases of physical gold bars, or, increasingly, through investments via digital platforms.”

According to Dubai Gold Souq jewelers, resident shoppers and tourists have been switching to gold bars as part of their investment choices. It could be a 1 gram bar or go up to 10 grams, but the demand is very much there. Some online sellers even offer buy now pay later options on gold bar purchases.

Apart from gold and property, the other favoured choice for UAE high networth investors is to ‘expand internationally’, according to HSBC.  

“56% of UAE affluent investors plan to expand internationally—more than any other surveyed market,” says the report. “The US, UK and Germany are the preferred destinations for overseas investment accounts.”