80% Of UAE Investors Lack ‘Strong Investment Knowledge’

Most UAE investors do not seek professional financial advice, finds new study.

Around 80 per cent of UAE investors admitted that they do not have a ‘strong knowledge’ about investments, according to a study conducted by Natixis global asset management.

But despite this lack of knowledge, most investors do not seek professional advice, the study found. Around 66 per cent of the investors surveyed said that they have never consulted a financial adviser.

The study also showed a disconnect between financial knowledge and financial planning among investors.

Only 35 per cent of UAE investors said they have a plan that will help them reach their financial goals. In case of a shortfall in funding for retirement, 21 per cent said that they would turn to government programmes for support, with the majority more likely to rely on their children.

However, most investors have begun prioritising an investment strategy that would lead to increased returns in the future, Natixis stated. Around 74 per cent of the respondents agreed that asset growth was a bigger priority than protecting capital.

Investors are also recognising the need to take on increased risk to promote asset growth, found the study.

Around 57 per cent of UAE investors said that they are willing to increase the level of investment risk, compared to 44 per cent globally. A majority of the respondents also said that they no longer feel that stability is the most important focus for their investment.

“These findings demonstrate a clear change of direction for regional investors, who are now willing to be more adventurous than ever in their investment decisions,” said Moad Touhami, head of distribution, NGAM Dubai.

“This is an opportunity for the region’s financial advisors to help nurture the investment potential investors can achieve, while at the same time educate to have a clear strategy in place.”