In the UAE, a recent survey by the International Financial Group Ltd (IFGL) revealed that young investors, aged 18 to 24, are increasingly turning to cryptocurrencies for inflation-beating returns. Approximately one in ten residents in the UAE, especially Emiratis, show a keen interest in digital currencies, with a higher preference among males (12%) compared to females (6%).
The survey also indicates that male investors lean towards properties, commodities, and fixed-rate deposits, while females favor national bonds. Interestingly, mutual funds and cryptocurrencies share equal popularity, just ahead of those preferring exchange-traded funds (ETFs).
However, traditional investments like gold continue to maintain a stronghold, being the top choice for both Emiratis and Asians, along with property investments. Both categories stand at 24%.
Simon Barwell, IFGL’s Marketing Director, cautions investors against overly risky strategies, suggesting a diversified portfolio with different risk and return profiles. He emphasizes the need for a balanced strategy, considering the historical volatility of cryptocurrencies and the illiquidity of property investments.
The survey also highlights age-related investment preferences, with expats aged 35 to 44 showing a preference for investing in properties in their home countries, while those aged 25 to 34 opt for property investments in the UAE. Investors aged 45 and above exhibit less interest in cryptocurrencies and ETFs, with IPOs being the least favored overall.
tanvir@dubainewsweek.com
