More than half of UAE investors believe economic stagnation in the world economy will be the biggest risk to their investments in the next year
New research has revealed that increasing numbers of UAE-based investors are concerned about the impact of a slowing economy on their investments.
Over half of respondents (54 percent) believe economic stagnation in the world economy will be the biggest risk to their investments in the next 12 months, up from 39 percent in 2017.
The report by from Old Mutual International and Quilter Cheviot Investment Management said that issues such as growing trade uncertainty, weak economic indicators and a series of global political challenges have pushed major stock market indexes down.
The results of the survey also revealed that 43 percent of investors are concerned about interest rate hikes, versus 26 percent in 2017. Meanwhile, 41 percent are wary over falling oil prices, up from 39 percent in 2017.
Nearly a third of respondents feel Donald Trump’s presidency in the US could pose a risk to their investments - 30 percent feel geopolitical events such as terrorism may be a threat - while over a quarter of respondents believe the UK exiting the European Union in 2019 could also have a negative impact on investments.
Despite growing concerns over their investments, two-thirds of UAE based investors said they feel positive over the performance of the UAE economy over the next 12 months, the survey showed.
Mark Leale, head of Quilter Cheviot Investment Management’s Dubai representative office, said: “With everything that is happening globally, it is understandable that many investors are concerned there will be an economic slowdown this year.
“Markets will undoubtedly be more volatile in 2019 than in recent years. There are a number of events on the horizon that have fairly unpredictable outcomes, however, we still see attractive opportunities in many markets and continue to recommend the merits of holding a diversified portfolio invested across a range of asset classes."