UAE investors worried about savings, looking for guidance - UBS

Most of the wealthy in the UAE plan to change their lifestyles, a survey shows

  
Image used of illustrative purpose. United Arab Emirates currency.

Image used of illustrative purpose. United Arab Emirates currency.

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Investors in the UAE and around the world are apprehensive about the financial fallout of the coronavirus pandemic and are now reconsidering the way they invest their money, according to a new survey by global wealth manager UBS.

The study polled 3,750 individuals in 15 markets worldwide. In the UAE, young adults appear to be the most affected, with 79 percent of millennial investors saying that they have been financially impacted by COVID -19.

Across the globe, three-quarters (75 percent) of wealthy investors have concluded that “life will never be the same again.” The same sentiment is common among wealthy people in the UAE, where 81 percent told UBS that a “sense of fear will prevail for a long time.”

According to the survey, 67 percent of people with high incomes are planning to adjust their lifestyle after the health crisis is over, with seven in 10 saying that they intend to cut down on travel and trips to the office.

About half intend to move closer to their family; 46 percent want to live in less populated areas. For the majority (88 percent), staying healthy will be their top priority.

The silver lining, however, is that many investors (85 percent) are highly interested in sustainable investing and want their money to have an impact.

“This survey shows on a global scale what we are witnessing every day here in the UAE: Local investors are reconsidering the way they invest holistically. They are looking for guidance,” said Niels Zilkens, Head for Arabian Gulf at UBS Global Wealth Management.

Overall, 83 percent of investors want more guidance than usual from their financial advisor on how to manage their finances during the pandemic. In the UAE, the number of people in need of advice is bigger, at 87 percent.

Fear over finances

Across the globe, three-quarters (75 percent) of wealthy investors have concluded that life will never be the same again. The same sentiment is shared among wealthy people in the UAE, where 81 percent told UBS that a “sense of fear will prevail for a long time.”

Nearly seven in 10 (67 percent) of those polled globally also said the pandemic has indeed affected how they think about their money.

Fifty-six percent worry about not having enough saved if there is another pandemic, while 58 percent worry about working longer to make up for retirement losses.

The majority (60 percent) are also worried about being a financial burden to their family if they get sick, while 54 percent are worried about leaving enough money for the next generation.

“The pandemic is causing many of them to rethink how they’ll fund their liquidity, longevity and legacy needs,” Tom Naratil, co-president of UBS Global Wealth Management and president of UBS Americas.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

#UBS #UAE #Wealth Management #HNWIs

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