(MENAFN- Khaleej Times) The UAE, which has fast emerged as an attractive investment destination for the super rich, is the world's second most confident market for millionaires, a new survey finds.
UBS Confidence survey, which was conducted among over 5,400 millionaires with at least $1 million investable assets, shows that millionaires are significantly more confident about both their own prospects and the wider economic outlook than most of their counterparts in other major markets.
A recent report by New Worth Wealth estimated that 5,000 individuals holding assets worth at least $1 million migrated to the UAE. The number of migrating millionaires was the third highest among the markets monitored and there were more ultra-rich individuals moving to the UAE than in other hotspots like the Caribbean, Switzerland or Singapore. The total private fortunes held in the UAE went up by 10 per cent to $925 billion, by 60 per cent in 2017 over the past decade, between 2007 and 2017.
The 2017 World Wealth Report estimates that the number of high-net-worth individuals in the UAE grew to 55,700 in 2016 and collectively holds $195.3 billion in private wealth. The UBS Confidence Index reveals that 62 per cent of millionaires are confident about the short-term and long-term outlook, compared to just 11 per cent who feel the opposite. In the UAE this figure is even higher with 77 per cent of millionaires confident (second only to Switzerland) and only five per cent saying they feel pessimistic.
Ali Janoudi, Head WM Central & Eastern Europe, Middle East & Africa, France & Benelux Intl, said despite recent market turbulences, UBS continued to see high levels of confidence among the world's wealth holders. "Overall confidence, measured by gauging investors optimism on the national economy and personal financial situation over the long and short term, is highest in Continental Europe, the Middle East and the US," he said. "The UAE ranks as the second most confident market among all countries globally. But one trend that we are seeing the world over is a natural bias among millionaires towards their own domestic stock markets. Spreading risk remains important in case we do see any kind of correction in future," said Janoudi.
In the UAE, wealth holders cite a range of concerns including geopolitical risk, inflation, tax increases and terrorism. Male millionaires in the Emirates typically cite a higher level of concern about each of these issues than their female counterparts
Globally, strong optimism about the financial climate is reflected in millionaires' ranking of key concerns. Worries about a market downturn, interest rate rises, inflation and market volatility all fall outside the top five. Instead, concerns center on societal challenges: rising healthcare costs, cyber-security, and terrorism are today's top three fears. -
Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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