Saudi's super-rich favour illiquid assets, says report

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Image for illustrative purposes only)

(Image for illustrative purposes only)

More than 90 percent of Saudi Arabia’s super-rich favour investment in illiquid assets to avoid the urge to sell when markets fall, a Barclays Wealth report said.

Some 96 percent of wealthy investors in the kingdom also report setting themselves financial deadlines, with 90 percent saying they prefer to delegate financial decisions to others to avoid the risk of “emotional trading”.

The poll, which surveyed more than 2,000 high-net-worth individuals (HNWI) around the world, found investors in the Gulf display better financial discipline than their counterparts elsewhere.

In the UAE, some 82 percent of investors polled said they delegate financial decisions, while more than three quarters said they believe buying and selling often will boost their returns.

In Qatar, 98 percent of HNWI said they were most likely to delegate financial decisions to others while 42 percent said they preferred to deal swiftly with bad investments.

They also favour strategically timed markets as opposed to adopting ‘buy and hold’ strategies, the report said.

Investors in Asia Pacific, particularly in Taiwan and Hong Kong, demonstrate the greatest desire for financial discipline while those in more developed markets such as Spain, Australia and the US show less, said Barclays Global.

Globally, 41 percent of wealthy investors wished they had more self control over their financial behaviour, the report said.

Those at the wealthier end of the spectrum - owning in excess $16.4m in assets – felt the greatest need for financial discipline with 45 percent of respondents wishing they had more self-control.

Globally, nearly a third of those polled (32 percent) said that trading frequently is necessary to get a high return, however these respondents are over three times more likely to believe that they trade too much. In total, almost half (46 percent) of respondents who believe one has to trade often to do well think that emotions force them to do this, said the report.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: rey kardoso

The observation that Saudi super rich favor illiquid assets to avoid the urge to sell when markets fall is a very debatable ambiguous statement and does not at all make sense, in my humble opinion. There must have been a different perception captured by the surveyers. The aspect of delegation also may not be universally representative of this segment of super rich investors. On the contrary, many I know of, apply trading techniques and opportunistic deal making. While there may be delegations of the actual executions, the core strategy, preference, timings are very much reined in by the investors themselves. I challenge the barclays surveyers to reconfigure their sample size and mix and they will be surprised by the results!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Women edge into Gulf boardrooms as economies, societies shift

Women edge into Gulf boardrooms as economies, societies shift

Amina al-Rustamani, CEO of TECOM Investments, is leading the...

Dubai mulls rule change to lure more domiciled funds

Dubai mulls rule change to lure more domiciled funds

Proposed rules would create a new class of funds in the Dubai...

Gulf's rift over Qatar may slow investment, reforms

Gulf's rift over Qatar may slow investment, reforms

Analysts suggest dispute may not hurt immediately but could impact...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams