UAE entrepreneurs focused on saving money for new businesses: Report

A report by global investment advisers organization CFA Institute says the number one goal for UAE savers and investors is putting money aside to start a new business. (Shutterstock)

LONDON: A report by global investment advisers organization CFA Institute says the number one goal for UAE savers and investors is putting money aside to start a new business. Globally, the primary investment objective for international savers is retirement-related.
The CFA survey compared investment imperatives for global investors with those in the UAE and found major differences. On primary investment goals, saving to start a business came top for UAE respondents at 31 percent, but globally the number came in at just 4 percent. More than 20 percent of UAE investors said saving for a large purchase came second, while globally the number was 11 percent.
The CFA says: “Investors in the UAE are confident about the financial services industry, with 47 percent claiming they are “very confident” in their investment decision-making abilities, compared with 33 percent of globally. The CFA also said that investors in the UAE tended to be younger than those in many other countries, perhaps reflecting their greater enthusiasm for business start-ups.
Some 54 percent of investors surveyed in the UAE work with a financial adviser — the same percentage globally. But only 32 percent assumed their advisers were trustworthy. When asked about their primary source of investment information, most UAE respondents chose friends and family over their advisers. “This was a much greater reliance on friends and family than in any other market surveyed,” says CFA.
When selecting an adviser, global investors placed more emphasis on personal trustworthiness and ethical conduct while investors in the UAE are more concerned with returns. UAE investors are most likely to switch firms due to data/confidentiality breaches, while underperformance was more important globally.
When asked about whether they expected another financial crisis in the next three years, 50 percent said “yes” from the UAE, and 38 percent globally. But 70 percent of UAE investors believe their investment firm is “well or very well prepared” to handle the next crisis, compared with just 55 percent globally.