A report by the CFA Institute, a global investment adviser, says the number one goal for the UAE investors and savers is to put money aside so as to start a new business. The main investment objective for international savers worldwide is related to retirement.
The survey of CFA compared investment imperatives for global investors with those in the UAE and found major differences.
On the number one goals for investment, saving to commence a business came top for respondents in the UAE at 31 per cent. However, the number came in at just 4 per cent globally. More than 20 per cent of investors from the UAE said that saving for a large purchase came second, while the number was 11 percent globally.
The CFA says that investors in the UAE are confident of their financial services industry, with about 47 per cent claiming they are very confident in their abilities to make decisions on investment, compared to 33 per cent worldwide. The global investment adviser also said that investors in the UAE tend to be younger than those in many other countries, perhaps reflecting their greater enthusiasm for business start-ups.
Some 54 per cent of investors surveyed in the UAE work with financial advisers, which is the same percentage globally. However, only 32 per cent assume their advisers were trustworthy. CFA says most respondents in the UAE chose friends and family over their advisers, when they were asked about their primary source of investment information.
Investors worldwide placed more emphasis on personal trustworthiness and ethical conduct when selecting their advisers, whereas investors in the UAE are more concerned with returns.
Globally, investors are more likely to switch firms due to underperformance; whereas investors in the UAE are likely to switch firms as a result of data or confidentiality breaches.
When asked if they expected another financial crisis in the next 3 years, 50 per cent of UAE investors said “yes”, whereas 38 per cent of investors globally said “yes”.
However, 70 per cent of investors in the UAE believe their investment firm is “well or very well prepared” to handle the next crisis, while at global level that number stood at 55 per cent.