Millionaires in the UAE are significantly more confident about both their own prospects and the wider economic outlook than most of their counterparts in other major markets, according to the new UBS Confidence Index.
The Index – a study of over 5,400 millionaires conducted regularly across nine markets – reveals 62% of millionaires are confident about the short-term and long-term outlook, compared to just 11% who feel the opposite. In the UAE this figure is even higher with 77% of millionaires confident (second only to Switzerland) and only 5% saying they feel pessimistic.
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.
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.
Ali Janoudi, Head WM Central & Eastern Europe, Middle East & Africa, France & Benelux Intl. at UBS, said: “Despite recent market turbulences, we continue 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.
“The United Arab Emirates 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.