UAE investors among world's most optimistic, new survey finds

  DUBAI - High net worth individuals and business owners globally are optimistic and looking for opportunities to invest as markets rebound in 2019, according to a new survey. The survey by UBS Global Wealth Management, 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. With 83 percent of UAE investors optimistic about the local economy, and 78 percent expressing optimism on the global economy, the UAE registers as the most bullish of all regions surveyed. UAE investors hold similarly optimistic views on equities, with 80 percent of respondents in favour of local stocks. They are also among the most likely to have plans to invest more (62%), second only to Latin American investors (66%). Globally, fifty-one percent of investor respondents were optimistic on the global economy versus 21 percent who were pessimistic. Business owners were especially positive, with 62 percent optimistic and 15 percent pessimistic. Even more – 60 percent of investors and 68 percent of business owners – expressed optimism on their own region's economy. Investors globally were also bullish on stocks, albeit not as bullish as UAE investors. Fifty-six percent expressed optimism on stocks in their own regions versus 49 percent on stocks globally. In addition, 74 percent saw recent market volatility as an investment opportunity, compared with 67 percent who were still concerned about volatility witnessed in the fourth quarter of last year. Forty-two percent of investors planned to invest more in the next six months versus 17 percent who planned to invest less. Sustainable investing was also cited as a growing interest, making up 27 percent of portfolios versus 22 percent five years ago. Business owners were equally bullish. Globally, 74 percent were optimistic on their business; 37 percent planned to invest more versus 10 percent who planned to invest less; and 31 percent intended to hire more over the next 12 months versus 12 percent who intended to downsize.

Domestic concerns, cash holdings elevated

On the negative side, investors expressed worries about domestic issues. Some 44 percent cited their country's politics as a top concern and 40 percent cited their national debt. In the UAE, investors' top concerns were the possibility of a global trade war, market volatility and inflation. Investors' cash holdings also remained high. On average, 32 percent of portfolios globally were allocated to cash. US and Swiss investors' cash holdings were lower (23% and 31%, respectively). Holdings in both Asia and Latin America were 36 percent. In Europe, they were 35 percent. In the UAE, cash levels were similarly high with 32 percent. However, US investors were also least likely to invest more, at 26 percent of respondents, while Latin American and Asian investors were the most likely, at 66 percent and 54 percent, respectively. 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." Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa at UBS Global Wealth Management, says: "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." Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, says: "'Buy local' works well for vegetables, but we are more optimistic on the global economy and this survey confirms investors sometimes focus too much on their home region. Diversification is still the best way to access opportunities and side-step domestic risks."

Regional findings

Americas

US investors exhibited the biggest risk of home bias, with 56 percent optimistic on their own region's economy versus 37 percent on the global economy – although 56 percent were also concerned about their country's politics and 49 percent about the national debt. Conversely, Latin American investors appeared less likely to exhibit home bias, with 78 percent optimistic on the economy both globally and in their home region – although concern about national politics was also high at 63 percent, behind inflation at 67 percent.

Asia

Asian investors cited fears about trade wars and a regional slowdown in China as their prominent concerns, at 46 percent and 43 percent of respondents, respectively. However, Asian investors still showed a risk of home bias, with 59 percent optimistic on the global economy versus 66 percent on their region amid strong performance in China in particular.

Europe

European investors have been beset by disappointing growth, political uncertainty, and weak financial market returns. They also have some of the highest holdings in cash. But once they have sufficient cash to meet their short-term liquidity needs, we believe there are better ways for them to protect and grow their wealth.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