Over half of UAE-based expats (54%) believe economic stagnation in the world economy will be the biggest risk to their investments in the next 12 months, up from 39% in 2017, according to a survey.
Old Mutual International and Quilter Cheviot released their investment and retirement survey, which questioned 130 global expats with $50,000 (£39,000, €44,000) to invest who are living in the UAE (mainly Dubai and Abu Dhabi) and use the services of a professional to invest in the stock market.
The report also showed 66% of respondents believe the UAE economy will be strong or perform better than in 2018.
Paul Evans, head of region, Middle East & Africa, Old Mutual International, said: “The importance of long-term financial planning shouldn’t be underestimated.
“Despite what investors will see and hear in the news and the impact this is having on the stock markets, markets will rise as well as fall, so it is important to stick to your financial plan in both good times and bad.”
Geopolitical events
The survey revealed that 43% of investors are concerned about interest rate hikes, versus 26% in 2017. Meanwhile, 41% are wary over falling oil prices, up from 39% in 2017.
Also, nearly a third (32%) of respondents feel Donald Trump’s presidency in the US could pose a risk to their investments.
Some 30% feel geopolitical events, such as terrorism, may be a threat; while over a quarter (26%) of respondents believe the UK exiting the EU in 2019 could also have a negative impact on investments.
