Survey says 84% of high net worth individuals and business owners in the UAE take an optimistic stance on the state of their economy
More than 80 percent of high net worth individuals and business owners in the UAE take an optimistic stance on the state of their economy, well above the global average, according to research.
The figure (84 percent) is almost unchanged compared to last quarter's results, according to UBS Global Wealth Management's quarterly investor sentiment survey.
It also revealed that 81 percent of UAE investors are bullish on regional stocks.
By comparison, investors globally expressed much lower levels of optimism on their domestic economies and stock markets.
It showed that 59 percent were optimistic on the domestic economy in the most recent quarter, and 55 percent expressed bullish views on local stocks.
Nevertheless, UAE investors said they remained reluctant to put money to work in the market, holding 21 percent of their assets in cash on average.
UBS Global Wealth Management's Chief Investment Office said it recommends investors continue to put money to work in a diversified portfolio, holding a positive overall stance on stocks for the rest of 2019.
The survey, which polled more than 3,800 wealthy investors and entrepreneurs in 17 countries, showed UAE investors rank cyber security as one of their top concerns, with 48 percent of respondents seeing it as a major worry.
Cedric Lizin, head of UBS Wealth Management Dubai, said: "Our survey shows clearly that investors in the UAE are among the world's most optimistic when it comes to their local economy. However, we believe it is now important to translate that optimism into actual market participation, as opposed to cash holdings."
Among global investors, the current trade war between the US and China was one of the most prevalent top concerns, as cited by 46 percent of respondents, up 7 percent quarter over quarter. Cyber security was also a common worry with 43 percent.