Investors find UAE more attractive than US, Europe

UAE - A large majority of UAE investors surveyed by a leading global wealth manager are considering adjusting their portfolios in anticipation of the US election.

According to a new Investor Sentiment study by UBS, while 87 per cent of investors in the UAE consider adjustments to their portfolios prior to the US election, globally only 72 per cent of investors are pondering such a shift.

Among those surveyed, 83 per cent consider the UAE as an attractive region for investment opportunities followed by the US (68 per cent) and Europe (68 per cent).

Most respondents based in the UAE would consider investing in 5G networks, hedge funds and a green recovery over the next six months

While 78 of UAE investors plan to make further changes based on the result, 68 per cent are optimistic about their region's stocks on a short-term basis over the next six months, the survey results suggest.

The survey has polled more than 4,000 investors and business owners across 14 markets globally.

Investors prioritise yield in their portfolios with 61 per cent aiming to get more yield in the next six months and 30 per cent looking to reduce the level of risk in their portfolio.

Tom Naratil, president of UBS Americas and co-president of UBS Global Wealth Management, said in the pandemic that clients needed advice more than ever, and the ongoing market volatility and political uncertainty reinforced that need. This survey reiterates that investors are looking for advice, and the US election is a unique opportunity for wealth managers to reach out to their clients and provide them with guidance during an uncertain time."

Iqbal Khan, co-president of UBS Global Wealth Management, said amid uncertainty over the US election and Covid-19, investors appear to be more positive on their own region than on the world at large. In the period surrounding the election, we believe they should diversify globally and avoid falling prey to their own home bias."

"The US elections are a global event with repercussions across the globe, including in the Middle East. UAE investors are watching closely and the vast majority consider portfolio changes both ahead and after the elections, depending on results. Clearly there is strong demand for investment advice," said Ali Janoudi, head of Middle East and Africa at UBS Global Wealth Management.

Globally, 66 per cent of investors are considering allocations to the healthcare sector over the next six months, while 62 per cent are considering 5G networks and 56 per cent are considering investments in a green recovery.