UAE residents are just as likely to turn to cryptocurrencies as a source of investment than they are to invest in a mutual fund.
This is the finding from a survey published by UAE-based International Financial Group.
A poll of more than 1,000 UAE residents, conducted in 2023, found that 10% believe cryptocurrencies are the best way to generate inflation-proof returns, the same number as mutual funds.
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ETF’s polled slightly lower at 9% while gold and UAE property were the most popular choices at 24% each.
Unsurprisingly, cryptocurrencies proved most popular with younger generations, especially the 18-24 year olds, and were more in demand among males (12%) than females (6%).
The findings have sparked concern that UAE residents favour risky investments and need to embrace diversification through traditional asset classes such as equites and bonds.
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“Some UAE investors are clearly pursuing risky strategies whereas they should be building a diverse portfolio of assets with different risk and return profiles,” said Simon Barwell, IFGL’s marketing director.
“Cryptocurrencies have a history of volatility while property is an illiquid investment, so UAE investors should be thinking about equities and bonds too, both locally and overseas. A balanced strategy is the key to long-term wealth accumulation.”