Majority of Indians in UAE want to invest more, survey finds

About 66 per cent of Indians living in the UAE plan to increase their investments in the country in the next three years, according to a report by HSBC.

This is higher than the global average for overseas Indians’ investment intentions, which stands at 59 per cent.

Indian investors in the UAE will primarily seek investments in real estate, stock markets and private businesses, according to the UK lender’s Global Indian Pulse report, which polled 4,152 people in nine markets. This included the UAE (1,05 respondents), the US, the UK, Saudi Arabia and Singapore, among others, between August 18 and September 13.

“At 3.5 million, the UAE is home to the largest number of Indians abroad,” said Abdulfattah Sharaf, UAE chief executive and head of international at HSBC.

“India is already the UAE’s second-largest trading partner and as both economies continue to prosper and grow, so will the ambitions of Indian entrepreneurs, businesses and high-net-worth individuals based here.”

However, a separate survey this week by Standard Chartered found that 43 per cent of affluent people in the UAE believe the Covid-19 pandemic weakened their confidence in their finances and prevented them from achieving new financial goals.

Thirty five per cent of affluent people surveyed in the country said financial market volatility was the main cause of their diminished confidence, 30 per cent cited a fear of poor returns on investments, while 26 per cent said the complexity of developing an investment strategy was a deterrent, Standard Chartered found.

The UAE economy continues to recover from the coronavirus-induced slowdown, aided by Dh388 billion ($105.6bn) worth of economic support measures.

Other government initiatives such as retiree visas, remote working visas and the expansion of the 10-year golden visa programme to encourage foreign professionals to settle in the country, have also helped to improve investment sentiment.

Fifty six per cent of Indians in the UAE consider property to be the most attractive investment asset class, while 51 per cent said they would fund UAE businesses and 40 per cent prefer to buy stocks and shares, the report found.

About 87 per cent of affluent Indians are already investing in the UAE, while 93 per cent have invested in their home country.

Sustainability also plays a major role in Indian investors’ decision-making, the report found. About 78 per cent in the UAE said environmental and social initiatives matter to them when making financial decisions.