GCC’s HNWIs Confident About Local Economies Despite Crude Oil Price Decline
The majority of GCC’s high net worth individuals (HNWIs) are more optimistic about the economic situation in the region than global growth prospects, a new survey showed.
According to a report by Emirates Investment Bank, almost 55% of those polled said that the economic condition in the Gulf was improving compared to just 31% who were optimistic about the global economy.
HNWIs are defined as individuals with $2-M or more in investable assets.
The survey was conducted among GCC’s HNWIs in Q-4 of Y 2014, a period characterized by falling Crude Oil prices.
Respondents were also cautious about global economic growth with 29% saying that the global economy is worsening.
Around 86% of those polled said that they are somewhat or very optimistic about prospects for the Gulf region over the next 5 yrs.
Almost 78% echoed similar sentiments about the revival of growth globally.
In line with their confidence in the region’s growth, around 83% HNWIs preferred to invest locally, + 19% from last year.
HNWIs confidence in the stability of the regional economies and the need for more personal control over their investments are some of the factors that encourage them to keep their assets closer to home, the report said.
“While views of the global economy are more negative than last year, with respondents in this year’s survey almost twice as likely to say the situation is worsening, HNWIs are keen to continue growing their wealth and remain optimistic about future prospects globally and in the Gulf region in particular,” said Khaled Sifri, CEO of Emirates Investment Bank.
“There are strong signs of moving beyond the days of the financial crisis, albeit with a more cautious and perhaps more regional investment approach.
“We believe that the continued growth-focused attitude of regional entrepreneurs reinforces the positive outlook for the GCC region and global economy in the coming years.”
Despite Crude Oil’s Bearish run in the market, Gulf economies are expected to continue their growth, aided by government spending and private sector activity, a recent poll of economists showed.
By Mary Sophia
Paul Ebeling, Editor
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