Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., cites that the UAE’s GDP is forecasted to grow by 5.2% in 2025; this projection maintains an upward trajectory after the UAE achieved more than 3% GDP growth in 2023 and is expected to realize a 4.2% GDP hike this year.
Bas explains this positive outlook for the country’s economy, underscoring the nation’s investment into creating job opportunities across several domains as an appealing factor that is attracting young talent and Gen Z and Millennial investors’ preference for robo-advisers, among other considerations.
Recently released data shows that UAE led the charge in job creation across the Gulf region during Q1 2024; an 8% rise in new jobs was seen when compared to Q4 2023. This surge was driven by strong growth in key sectors such as digital, data, and AI while a 103% surge in new investor accounts opened on the Dubai Financial Market over the first three months of this year to further cement the country’s position as an attractive investment destination.
As the GCC continues to diversify via digital transformation and sustainable development, the UAE’s job market will play a key role in attracting younger demographics, particularly Gen Z and Millenials who are exhibiting great interest in technology.
Bas commented: “Though a distant memory, COVID-19 accelerated the shift to online financial services, while the integration of AI and machine learning technologies has further expedited this transition; because tech-savvy millennials prefer digital platforms for financial services, due to cost and convenience. The rise in online investment advice might be responsible for the increase in young investors as CFA Institute data shows that 56% of Gen Z have invested online in some form or the other.
These demographics in particular are displaying a keen understanding of the importance of investing in technologies and tools that have the potential to advance society, and this is a welcome sign for the country’s economy especially when considering that 76% of UAE consumers want to choose brands based on environmental and social factors.”
According to recent findings, approximately 66% of international investors under age 30 now lean towards digital platforms; more specifically, ones that are transparent and affordable while also offering a consolidated view of their finances and providing the ability to invest modest amounts. This global trend aligns with regional findings as the number of users in the UAE’s robo-advisors market is expected to reach 23.620k users by 2028, up from 7.930k users pre-pandemic in 2019.
Additionally, the Dubai Chamber of Digital Economy announced that it attracted nine multinational companies (MNCs) worth a combined market value of over Dhs304 billion ($82.84bn) last year.
According to Bas, this will undeniably create momentum to attract more business, elevate the country’s economy in line with the D33 (Dubai Economic Agenda) that was announced last year, and improve the country’s global standing as the seventh-largest wealth management booking centre.
Bas is facilitating portfolio diversification for several investors in the country and abroad. Those who have worked with him since his company’s inception four years ago have witnessed a minimum average ROI of 86% and more than 48 consecutive months of positive returns to more than double their initial investment.
tanvir@dubainewsweek.com
