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Inflation, cybersecurity and potential recession risks are the main concerns for investors in the UAE, with as many as 45% delaying large purchases and 72% worrying about the long-term impact on retirement savings, a report said.
Despite inflation concerns, cash holdings have only edged down since May, according to the world’s leading global wealth manager UBS’s latest quarterly investor sentiment survey.
In terms of further investment in the market, 33% of investors in the UAE will increase their investment if the market falls by a further 10%. UAE business owners are concerned about rising material costs, with 44% raising prices in the past six months and 48% increasing in the second half of the year.
Globally, optimism among high-net-worth investors has fallen to levels seen in the early days of the pandemic amid persistent concerns over the economic and market impact of inflation and the war in Ukraine, the report said.
With investor optimism waning, nearly three-quarters of investors are now worried about making the wrong investment decision and holding onto cash in the current environment. Nonetheless, if the market declines further, they see potential investment opportunities and are very interested in energy security, smart mobility and automation/robotics as long-term investment themes.
“Global investors are concerned about rising inflation, the war in Ukraine and the possibility of a recession,” said Iqbal Khan, president of UBS Europe, Middle East and Africa and co-head of UBS Global Wealth Management.
“In these challenging times, investors must continue to seek expert guidance and perspectives to understand the environment and potential opportunities to support their liquidity, longevity and legacy needs.”
“Emirati investors remain vigilant as volatility, inflationary pressures and geopolitical risks continue to lead to uncertainty. We have the ability to guide them through this period, and they are showing signs of investment themes such as energy security, smart mobility, automation and robotics. interest,” said Ali Janoudi, head of wealth management Middle East, Turkey and Turkey at UBS. Africa.
“Business owners in the region, while also concerned about rising prices and material costs, are optimistic about the regional economy next year and plan to continue hiring.”
By contrast, optimism among business owners has picked up after the biggest drop in two years, with most planning to keep hiring workers and investing in their businesses over the next 12 months. Nearly half of business owners expect to raise prices in the next six months due to rising material costs and concerns about rising wages.
Tom Naratil, president and co-president of UBS Americas, said: “Given the current market environment, the growing optimism and continued focus on hiring and investing by business owners is an encouraging sign as they A major driver of the global economy.” UBS Global Wealth Management. “Thoughtful wealth management advice and solutions in business planning, portfolio diversification and exit planning are essential for them to navigate the market.”
Other areas found:
us
In the US, short-term investor optimism about the economy and the stock market fell to 39% and 37%, respectively, from 58% in May. If the market falls a further 10%, younger investors (38% of millennials and younger) are more likely to increase their exposure to the market than older investors (18% of boomers and seniors) configuration. Looking ahead to the midterm elections, the top concern for U.S. high net worth investors is the economy (85%), followed by health care (74%), taxes (72%) and Social Security (71%).
Latin America
Short-term optimism among Latin American investors is better than in the U.S., with 53% feeling optimistic about the region’s economy and stock markets, compared to 60% in the previous period. Their optimism stems from a return to normalcy, continued strong consumer demand, and potential opportunities to capitalize on market cycle declines.
Europe
Across Europe, high net worth investors’ optimism about the stock market and the economy fell by 10 and 15 percentage points, respectively, to 50% from their May levels. Reasons cited by those optimistic Europeans include strong corporate earnings, employment and consumer demand.
Asia-Pacific
In Asia Pacific, optimism remained stable and remained the highest of any region, with six in 10 investors feeling confident in the stock market and the economy. Investors in the region are interested in long-term investment themes including energy security and smart transportation. – arab trade news agency
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