Future bright for region’s wealthy
MAJORITY OF HIGH NET-WORTH INDIVIDUALS BELIEVE BOTH THE GLOBAL AND REGIONAL ECONOMIES ARE IMPROVING
High net-worth individuals from the region are optimistic on the regional and global economic outlook, the GCC Wealth Insight Report shows |
High net-worth individuals (HNWI) from the region are optimistic on both the regional and global economic outlook, according to the GCC Wealth Insight Report, a survey-based study by Emirates Investment Bank (EIBank), that provides intelligence on the collective economic and investment outlook of the region’s wealthy.
The report, in its fifth year of publication, is based on a survey of 107 HNWIs with $2 million (Dh7.34 million) or more in investable assets.
Almost two-thirds of HNWIs included in the survey believe the current global and regional economy is improving or staying the same, attributing their optimism to the perceived recovery from previous economic crises and increased political stability.
HNWIs in the GCC also expect the positive global and regional economic trajectory to continue over the next five years.
“Last year [2017] was certainly a surprising year. The global economy’s strong performance has given HNWIs in the GCC a greater sense of optimism, both in the global and the GCC economy,” said Khaled Sifri, CEO of Emirates Investment Bank.
“Factors like the GCC’s stability, attractive investment opportunities and the low-tax environment are seen as the main drivers behind the growing confidence in the region’s economy, and the increased preference for investing in Gulf assets.”
Positive economic sentiment in the GCC region has coincided with an uptick in preference for keeping assets closer to home and investing in GCC assets.
Cautious approach
Alongside the optimism and positive outlook seen in this year’s survey, the 2018 Report indicates that HNWIs are still somewhat cautious about the uncertainty in the economic and political environments.
This is evident in the increase in HNWIs concerned with preserving wealth, as over a third say their priority now is to preserve wealth rather than pursuing a strategy of growing wealth, a notable increase from 2017.
The percentage of those focused on growing their wealth has dropped to less than twothirds of respondents, bringing wealth accumulation to a fiveyear low.