Around 40 per cent of financial advisers in the UAE said that their businesses have been growing strongly compared to 13 per cent of advisers globally, according to a Natixis study.
The survey found that nearly three out of four UAE advisers are witnessing a growth phase.
It also noted that there is great potential for further growth among financial advisers if the current challenges are successfully overcome.
Globally, one of the biggest challenges that advisers face is to construct a portfolio that would reduce risks and enhance returns simultaneously.
Data from the study has shown that UAE advisers are twice more likely than their global counterparts to balance client asset growth with protection of capital. Around 77 per cent of local advisers looked for specific investment strategies aimed at managing volatility, the study found.
A major challenge faced by UAE-based financial advisers is educating the client about various investment options. According to the study, explaining investment concepts to clients is the number one service proposition for 37 per cent of the UAE advisers, as compared to only 22 per cent internationally.
The results are in line with a previous global Natixis survey, which revealed that a majority of the investors in the UAE do not have strong investment knowledge.
“The industry is clearly moving in the right direction, with the majority of advisers, both globally and in the UAE, reporting good levels of business growth,” said Moad Touhami, head of distribution, Natixis Global Asset Management, Middle East.
“Asset management companies can play a critical role in meeting these challenges and contributing to the development of the financial advisory business with research, data and new investment techniques to help advisers construct better portfolios.”