27 February 2014
Investors in the United Arab Emirates (‘UAE’) are increasingly optimistic about investment opportunities for the year ahead, with almost three quarters (72%) more confident this year, compared to last year. Analysis of the Schroders Global Investment Trends Report 20141, a survey of 15,749 investors across 23 countries, reveals that over four-fifths (84%) of Gulf investors are looking to increase or maintain the amount they invest and save in 2014, with 70% of investors2 looking to place funds in equities.
Gulf investors’ positive outlook is mirrored globally with more than four-fifths (82%) looking to increase or maintain the amount they invest and save this year and 70% looking to invest in equities. However, in contrast to the global trend where investors are looking beyond their own boundaries, Gulf investors see the Middle-East as offering the best returns. Almost six-in-ten of UAE investors believe the Middle East is likely to deliver the best returns in the next 12 months. This increased appetite for equities appears to reflect a more positive long-term economic outlook, despite recent market volatility. The report reveals that around the world investors are looking to invest in developed economies, as these are perceived as offering more stable potential returns and the best growth opportunities .
As for other major asset classes, the report reveals that gold remains popular in the Gulf region with a quarter (25%) turning to this asset class, with physical property a close third (22%), followed by bonds (20%).
A primary concern for a third (33%) of Gulf investors is increasing inflation, followed by 29% who are worried about a potential property market crash. Surprisingly, the threat of instability in the wider Middle-East is only a major concern for 15% of investors.
William Wells, Director, Middle East, Schroders stated: “Our report indicates that Gulf investors remain committed to the Middle-East in contrast to investors worldwide who are taking a more global view in a bid to capitalise on new growth opportunities. It also shows encouraging signs of renewed confidence in equity markets, driven in part by improving economic and market performance in developed economies. This is reflected in the confidence shown in equities by Gulf investors. However, support for gold as a perceived safe-haven asset class remains strong.”
When thinking of their financial priorities for 2014, almost half (44%) of Gulf investors polled are planning to invest any money left over having paid bills and mortgages, whilst a quarter (24%) will deposit it in a savings account and 12% will invest it in their business.
William Wells continues: “For those investors looking beyond domestic assets, seeking professional financial advice should be a focus for investors as they look to move into new areas and benefit from global growth and opportunities.”
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Notes to Editors
For media only. To view the latest press releases from Schroders visit: http://ir.schroders.com/media
Schroders commissioned Research Plus Ltd to conduct an independent survey of 15,749 investors in 23 countries around the world who intend to invest €10,000 (or the equivalent) or more during the next 12 months. The survey was conducted online between 2nd – 24th January 2014 and these individuals represent the views of investors in each country involved in the survey.
Schroders is a global asset management company with £256.7 billion (EUR307.2billion/$415.8billion) under management as at 30 September 2013. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors. With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business. Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online atwww.schroders.com for our alerting service.
For Middle East only: This document is issued by Schroder Investment Management Limited, First Floor, Gate Village Six, Dubai International Financial Centre, PO Box 506612, Dubai, United Arab Emirates. Schroder Investment Management Limited is regulated by the Dubai Financial Services Authority and entered on the DFSA register under Firm Reference Number: F000513. This document relates to a Fund which is not subject to any form of regulation or approval by the Dubai Financial Services Authority ("DFSA").The DFSA has no responsibility for reviewing or verifying any Prospectus or other documents in connection with this Fund. Accordingly, the DFSA has not approved any associated documents nor taken any steps to verify the information set out in the Prospectus for the fund, and has no responsibility for it. This document is intended for professional investors only as defined by the DFSA rules which can be accessed from their website www.dfsa.ae For UAE Only: This document does not constitute a public offer of securities in the United Arab Emirates. Mutual Funds may be offered to a limited number of sophisticated investors, as defined by the Securities and Commodities Authority (“SCA”) Board Decision no. (13) of 2013.
1Schroders commissioned Research Plus Ltd to conduct an independent survey of 15,749 investors in 23 countries around the world (298 in the UAE) who intend to invest €10,000 (or the equivalent) or more during the next 12 months. The survey was conducted online between 2nd – 24th January 2014 and these individuals represent the views of investors in each country involved in the survey.
2For the purpose of this research project we have defined an ‘investor’ as someone with at least €10,000 or equivalent that they are looking to invest in the next 12 months.