UAE investors more likely to increase stocks exposure - UBS survey

58% of UAE investors are considering increasing stocks over the next six months, compared with 41% globally, according to UBS

  
Image used for illustrative purpose. Logo of Swiss bank UBS and a slogan reading 'we will not rest' is seen in a window of a building at Paradeplatz square in Zurich.

Image used for illustrative purpose. Logo of Swiss bank UBS and a slogan reading 'we will not rest' is seen in a window of a building at Paradeplatz square in Zurich.

REUTERS/Michael Buholzer

Investors in the UAE are more likely to increase their exposure to stocks within the next six months, with the majority planning to invest in industries being transformed by technology.

The UBS Investor Sentiment Survey found that investors currently hold elevated levels of cash in their portfolios, but 58 percent of UAE-based investors were considering increasing their exposure compared with 41 percent globally.

According to the global wealth manager, the most important area for investors is industries currently being transformed by technology, with 70 percent citing them as a top opportunity.

Top concerns were COVID-19, followed by worries about long-term competitiveness and interest rates rising.

In the UAE, cash holdings make up 26 percent of investor portfolios, up nine percent since September 2020, and 44 percent are still holding more than 10 percent in cash. Globally the cash holding figure is 22 percent.

Video: What are UAE investors and business owners planning for the next 12 months?

The survey also showed extremely high levels of optimism about the regional economy in the UAE, with 96 percent optimistic about the next 12 months, up 11 percent on last year, compared with 70 percent in the USA, 69 percent in Asia and 69 percent in Europe (except Switzerland, which was 57 percent).

UAE business owners also showed high levels of optimism, with 80 percent optimistic about the next year, up eight percent on last year. Hiring sentiment was less positive, with 37 percent planning to hire new staff, 50 percent planning to keep their workforce the same, and 13 percent planning to downsize.

When it comes to investing in their business, 45 percent plan to invest more over the next 12 months, 42 percent plan to invest the same and 13 percent plan to invest less.

Ali Janoudi, head of Middle East and Africa at UBS Global Wealth Management, said: “In the UAE, a majority of investors told us they are seeing opportunities in industries that are being transformed by technology.

“We completely agree and believe that sectors such as greentech, fintech and healthtech will be structural winners in the long term.”

(Writing by Imogen Lillywhite ; editing by Daniel Luiz)

 imogen.lillywhite@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021


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