Dubai: UAE investors are showing greater confidence in their financial future than their global peers, with 21 per cent launching, acquiring or investing in new businesses, compared with 17 per cent worldwide, according to new HSBC research conducted by Ipsos.
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The survey of 9,993 affluent and high-net-worth investors across 10 markets, including 703 in the UAE, found that 87 per cent of UAE respondents were confident of meeting their short-term financial goals, while 81 per cent expected to achieve their longer-term targets.
The findings were released on Thursday as HSBC hosted its first UAE Wealth Investment Summit in Dubai.
Confidence also extends to living standards. Some 83 per cent of UAE investors said they were satisfied with their quality of life, against 75 per cent globally, placing the country among the top three markets alongside Mexico and India. More than a quarter (26 per cent) gave their quality of life a perfect score of 10, the joint-highest proportion across the surveyed markets and above the global average of 15 per cent.
UAE respondents were also managing an average of 2.7 major financial priorities simultaneously, compared with 2.5 globally. These included starting businesses, changing careers, funding children's futures, moving homes and preparing for retirement.
“The UAE has built an environment where people and their wealth can thrive, and this research shows it. Investors here are confident, ambitious and internationally connected, and they are planning for the long term,” said Sami Abouzahr, HSBC’s Head of International Wealth and Premier Banking, Middle East & UAE.
Retirement plans are changing
The research found that 81 per cent of affluent UAE respondents expected to leave employment gradually or adopt flexible working arrangements rather than retire completely.
More than a third (35 per cent) planned to pursue a second career involving advisory positions, board memberships or personal projects, the highest proportion among the 10 markets surveyed and above the global average of 28 per cent.
Only 19 per cent expected to retire fully at a predetermined age.
UAE investors see Dh2m inheritance
The survey also highlighted expectations of substantial wealth transfers between generations.
Half of UAE investors anticipated receiving a significant inheritance, compared with 43 per cent globally, while 58 per cent expected to leave substantial wealth to heirs or other causes.
Among respondents who expected an inheritance and could estimate its value, the median anticipated amount was approximately Dh2 million ($545,000), roughly twice the global median. Respondents typically expected to receive it around age 52.
Business ownership also featured prominently in inheritance planning. Nearly a third (32 per cent) of those intending to leave a legacy wanted their heirs to use the money to establish or expand businesses, compared with 24 per cent globally.
Almost all parents surveyed in the UAE (98 per cent) said they were already supporting the next generation, including through professional networks (39 per cent), strategic advice (33 per cent) and direct financial assistance (29 per cent).
The research found that 82 per cent of UAE investors had a clear strategy for supporting their families across generations, compared with 75 per cent globally. Another 26 per cent said professional guidance on intergenerational wealth planning would improve their confidence, against 22 per cent worldwide.
“A significant transfer of wealth between generations is under way in the UAE, and families want to get it right,” said Craig Worobec, HSBC’s Head of Wealth and Premier Solutions, Middle East & UAE.
“That means planning early, having open conversations about what wealth is for, and preparing the next generation with the skills and networks to use it well.”
Worobec said more customers were choosing to manage their international wealth from the UAE, reflecting the country's growing role as a base for cross-border investment and financial planning.