“27% of investors in the UAE are changing investment strategies to fight global inflation”

• 29% of investors are spending less, while another 34% are investing more to fight inflation
• Cash to take a backseat among UAE investors, falling to 8.6% of portfolio allocation by 2023
• 54% expect to make more sustainable investments in the next year, compared to 52% globally
• Despite market turmoil, 72% of UAE investors still trust digital assets

dubaiUnited Arab Emirates, December 7, 2022 /PRNewswire/ — Standard Chartered’s 2022 Wealth Forecasts report examines the shift in investor decision-making, and the resulting Major asset changes. The findings show that 61% of local investors are more actively managing their wealth and changing their investment strategies in light of the current economic challenges.

beat inflation
Investors in the UAE ranked inflation (30%), recession threat (21%) and an uncertain global economy (20%) as their top concerns. Rising inflation (34%), recession (27%) and global economic uncertainty (22%) were also key concerns for international investors.

Over the past year, local investors have made changes to their finances, such as spending less (29%) and making new decisions around their portfolios (27%), which will drive changes across major asset classes change.

To beat inflation, 61% of global investors want to reduce their cash holdings, compared with 71% in the UAE. Standard Chartered predicts that global cash allocations will fall from 26% in 2022 to 15% in 2023, as evidenced by investor reaction.

Investors are also rethinking their holdings as market volatility increases, although the asset class will remain an integral part of portfolios. Among those currently invested in equities, there are signs that equity allocations in UAE investors’ portfolios will fall from 10.1 percent to 6.9 percent next year, based on survey responses.

PhD Owen YoungHead of Wealth and Wealth Management Africa, middle East and Europe At Standard Chartered Bank, Said: “Investors in the UAE face a complex reality, with inflation, the threat of recession and an uncertain global economy top of their minds, which is a common concern for global investors. Our research shows that UAE investment Investors are making changes to their portfolio allocations to address these challenges, increasing the importance of aligning these decisions with their long-term goals and the global environment.”

The report also shows that gold continues to be of high interest to UAE investors this year, with 51% saying they invest because of inflation, with 45% interest in value stocks and 45% in bonds, in addition to fighting inflation in 2022 .

Sustainable investing will continue to garner investor interest and funding, although greenwashing issues remain. More than half of global investors (52%) expect to increase sustainable investing in 2023. 54% of UAE investors will do the same.

Digital assets continue to attract investors
Despite multiple market setbacks this year, 72% of local investors still consider digital assets an important part of any investment portfolio, research shows.

Currently, 66% of global investors hold digital assets, compared to 73% in the UAE. Looking ahead, 71% of local investors surveyed plan to increase their investments in digital assets in the coming year. This is partly because many say they have seen people get decent returns from digital assets (36%), and 36% think they are a good way to diversify their portfolios.

However, it’s important to note that this survey was conducted before the FTX crash, and events over the past few weeks may dampen such sentiment.

Help investors make better decisions
While the majority of global investors surveyed (62%) primarily manage their own finances, there are some differences between markets. Many investors in the UAE (37%) use professional wealth managers. On average, across 14 markets, younger (18-35) investors (63%) are more likely to hire a professional, compared to 39% of investors over 55. On average, investors who take advantage of professional advice are more likely to have well-diversified portfolios and higher sustainable investment holdings.

Dr Yang concluded: “We believe that a diversified portfolio with a multi-asset income-generating strategy offers some of the best opportunities for investors in the UAE. This, combined with professional investment advice tailored to their long-term goals, will help them navigate the current market conditions and achieve their targeted goals.”

For more information, please contact:

Khalid AbdullahCertified Financial Analyst
Director, Head of Communications
Corporate Affairs, Branding and Marketing
united arab emirates
Mobile: +971 52 5546 475
Tel: +971 4 508 3155

Editor’s note

2022 Wealth Expectations Report

The 2022 edition of the Standard Chartered Wealth Forecasts report is the third iteration since 2019.

The study was conducted in 14 markets, including Mainland China, India, PakistanUnited Arab Emirates, Vietnam, Hongkong, Kenya, nigeria, Indonesia, Taiwan, Malaysia, Thailand, Singapore and South Korea. Field research was conducted online among 26 people^day september and October 18, 2022 A total of 15,206 respondents were surveyed.

Considering their income and total investable assets (or AUM), wealthy consumers fall into three groups: (a) emerging affluent and (b) established affluent are defined by market-specific income and AUM thresholds, while ( c) High Net Worth Individuals are those with assets under management of US$1 million or more, regardless of the country of residence.

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SOURCE Standard Chartered Bank