Investing.com – Wealthy investors in the UAE and around the world are now less optimistic amid growing recession and inflation fears, a new survey shows.
Nearly half (45%) of the country’s high-net-worth investors are putting off making big purchases, while 72% are concerned about the long-term impact on retirement savings and funds for future generations.
The global wealth manager’s survey included 2,800 investors and 1,100 business owners in 14 markets worldwide, including 200 respondents from the United Arab Emirates.
The survey results show that confidence among high-income investors globally has fallen to early levels of the pandemic due to continued concerns about the economic impact, the impact on inflation and the war in Ukraine.
Nearly three out of four investors are concerned about making poor investment decisions in the current environment and prefer to hold onto cash.
UAE results
In the UAE, investors are not only concerned about inflation and the possibility of an economic slowdown, but they are also concerned about cyber security risks.
“UAE investors remain concerned as volatility, inflationary pressures and geopolitical risks add to the sense of uncertainty,” said Ali Janoudi, head of wealth management at UBS for the Middle East, Turkey and Africa.
Despite their concerns, investors still see potential opportunities to make money. If markets continue to deteriorate, investors are likely to invest in energy security, smart mobility and robotics as part of their long-term strategy.
Business owners
Although investor confidence has waned, entrepreneurs remain optimistic, especially about the regional economy.
Overall, confidence among individual business owners rebounded after posting the biggest drop in sentiment in two years.
According to UBS, most business owners plan to continue hiring and investing in their business over the next 12 months. Nearly half of business owners expect to raise prices in the next six months as they take into account rising material costs and wage inflation concerns.
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