Twenty-nine percent of investors are spending less, while another 34% are investing more to combat inflation.
Cash on the backburner among UAE investors, falling to 8.6% of portfolio allocation in 2023
54% plan to invest more sustainably in the next year compared to 52% globally
72% of UAE investors still believe in digital assets despite market turmoil
dubai,United Arab Emirates, December 7, 2022 /PRNewswire/ — Standard Chartered’s 2022 Wealth Report Changes Investor Decision Making for Over 15,000 Emerging High Net Worth, High Net Worth and High Net Worth (HNW) Investors in 14 Markets Including UAE and the resulting movement of major assets. class. Survey results show that 61% of local investors are more proactively managing their assets and changing their investment strategies given the current economic challenges.
UAE investors cite inflation (30%), threat of recession (21%) and global economic uncertainty (20%) as their top concerns. Rising inflation (34%), recession (27%) and uncertain global economy (22%) are also key concerns for international investors.
Over the past year, local investors have made changes to their finances, such as reducing their spending (29%) or making new portfolio decisions (27%).
To beat inflation, 61% of global investors are looking to reduce their cash holdings compared to 71% in the UAE. Standard Chartered expects the global cash allocation to decline from 26% in 2022 to 15% in 2023, which is shown by investor reaction.
Investors are reconsidering their stock holdings as market volatility increases, but this asset class will remain an integral part of portfolios. Among investors currently investing in equities, there are indications that the share of equities in UAE investor portfolios will decrease from 10.1% to 6.9% next year, based on survey responses.
Doctor Owen Youngwealthy and high net worth managers Africa, middle east When Europe at Standard Chartered Bank “UAE investors face a mixed reality, with inflation, the threat of recession and uncertainties in the global economy being the top concerns, a shared concern among investors around the world. Our research reveals that UAE investors are undergoing a shift, in allocating portfolios to meet these challenges, and in aligning these decisions with long-term goals and the global environment. Alignment becomes more important.”
The report also reveals that gold remains a high interest for UAE investors this year, with 51% saying they invested in it as a result of inflation. The bond is he 45%.
Greenwashing concerns persist, but sustainable investments will continue to capture investor interest and capital. More than half (52%) of global investors expect to increase sustainable investments in 2023. So will his 54% of UAE investors.
Digital assets continue to attract investor interest
The survey reveals that despite multiple setbacks in the market this year, 72% of local investors still believe digital assets are an important part of any investment portfolio. rice field.
Currently, 66% of global investors own digital assets, compared to 73% in the United Arab Emirates. Looking ahead, 71% of local investors surveyed plan to increase their investment in digital assets in the next year. This is because many have seen great profits from digital assets (36%), and 36% see it as a good way to diversify their portfolio.
However, it’s important to note that this research was conducted before the FTX Crash, and the events of the past few weeks may dampen this sentiment.
Help investors make better decisions
Most of the global investors surveyed (62%) primarily managed their own money, with some variation across markets. Most UAE investors (37%) use a professional wealth manager. On average, across the 14 markets, a young (18-35) investor (63%) was more likely to use a professional compared to his 39% of investors over the age of 55. Become. On average, investors using expert advice tended to have more diversified portfolios and hold more sustainable investments.
Dr. Young concluded: “We believe a diversified portfolio with a multi-asset revenue generating strategy offers the best opportunities for UAE investors. It will help us navigate through the market conditions and achieve our objectives.”
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Note to editors
High Net Worth Report 2022
This 2022 edition of Standard Chartered’s Wealth Report is the third iteration since 2019.
The research was conducted in 14 markets, including mainland China. India, Pakistan,United Arab Emirates, Vietnam, Hong Kong, Kenya, Nigeria, Indonesia, Taiwan, Malaysia, Thailand, Singapore When Korea. Fieldwork is conducted online 26 hours a dayth September and October 18, 2022 A total of 15,206 respondents were surveyed.
Wealthy consumers are classified into three groups based on their income and total investable assets (or AUM): ) HNWIs are individuals whose AUM is US$1 million or more of hers, regardless of country of residence.
We are a leading international banking group with a presence in 59 of the world’s most dynamic markets and serving clients in a further 83 markets. Brand Promise, Here Forever.
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SOURCE Standard Chartered Bank