Covid-19 is the chief concern for UAE investors – UBS study

Covid-19 remains the top concern for the majority of UAE investors, a new study by UBS has revealed.

The study found out 67 per cent of UAE investors are anxious about the pandemic, while 58 per cent are concerned about the rising healthcare costs.

Despite that, 73 per cent said they were optimistic about the global economy over the next 12 months while 77 per cent are hopeful about the region’s economy during the next year.

In the longer term, 80 per cent of UAE investors said they were optimistic about this region’s economy for the next 10 years.

“Naturally, UAE investors remain concerned about the risks of Covid-19,” said Ali Janoudi, head of Wealth Management Middle East and Africa at UBS.

“However, we are also seeing a slight uptick in economic optimism, with longer-term investment themes such as security and safety, digital transformation and smart mobility attracting particular interest from UAE’s wealthy investors.”

The study also found that 64 per cent of respondents are highly interested in the US presidential election, and 70 per cent see Joe Biden more likely to win the US presidential election. Up to 85 per cent of the UAE investors plan to adjust their portfolios regardless of who wins the election.

A closely fought US election could indeed result in a higher degree of market volatility, according to UBS’s most recent ElectionWatch report, which examines the election’s global and regional implications. Nevertheless, the report does not envisage the levels of volatility that accompanied the onset of Covid-19.

“The US election will likely present numerous opportunities for investors, as well as some clarity over policy direction in the world’s largest economy,” said Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management.

“Regardless of the result, the eventual impact on financial markets is likely to be close to neutral, even if they experience some interim volatility.”