According to a recent Investor Sentiment survey revealed by a prominent Swiss bank, investors in the UAE are now becoming progressively optimistic about the country’s economic situation, with 85% voicing hope for the present year.
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Although opinions differ on when life in the Middle East will resume to ordinary, a narrow majority of 51% believe regular activity will return before July 2021, while, as per the UBS survey, 49% of those surveyed think it will not occur before the second half of the year. In late December and late December, the study surveyed more than 4,000 investors and entrepreneurs across 14 markets globally.
Globally, the level of trust among investment firms is also increasing, with most of them confident about their national economic situation and their equities.
UAE investors have identified Covid-19 (63%), accompanied by climate change (56%), and worry of a market drop (55%) as their critical challenges.
In the UAE, investors in particular stress risk and return considerations in their reactions, as shown in a survey by HSBC. Fewer than one in five think that they are fully aware of the threats and advantages of the low market context to act upon this, although almost half assume that they are uncertain or unclear. Investors also describe the danger as the critical obstacle to investments in the UA
UBS Global Wealth Management co-president Iqbal Khan said that the bank had spent approximately $1 billion in its 100% profitable private client account three years ago. That figure is over $18 billion today.
Globally, for the next 12 months, the majority of the respondents (60%) have an optimistic economic forecast, compared to 55% three months ago. Sixty-three percent of investors don’t think that life within the next six months will recover. Just 48 percent of these respondents are optimistic about the economy, among the 37% of investors who want life to return to normal.
As reported by a leading daily, Tom Naratil, president of UBS Americas and co-president of UBS Global Wealth Management, said the confidence among investors and business owners is rising globally, despite uncertainty over Covid-19 and political issues. “The decade ahead will present new opportunities, while geopolitical, economic, and social challenges will remain. It is no surprise to see that eight in 10 investors tell us they need expert advice more than ever.”
On a worldwide basis, 61 percent of investors are steadily positive about the stock market for the next six months, up to six percentage points internationally over the last year. Analysts believe that improvement on the Covid-19 vaccines (72%) and the possible effects of the US election outcome will help the economy (62 percent).
Over the next 12 months, 72% of company owners are optimistic in their own business, up from 69% in the third quarter, owing to business momentum (45%), vaccine innovation (43%), and supportive monetary policy (40 percent).
Nearly a third (32 percent) of company owners expect to recruit staff, up from 30 percent three months ago. Nonetheless, the percentage of business owners who plan to downsize also increased, up to two percentage points.
With 54 percent seeking to grow their portfolios, investors showed a particular focus on sustainable investment. Half of the investors expect renewable investments to produce higher returns than conventional investments, while 29% expect a fair playing field.
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