More GCC wealthy 'optimistic' about global economic prospects: report

High net worth individuals (HNWIs) in the Gulf Cooperation Council (GCC) are much more "positive" about the global economic situation today than they were in the last three years, Emirates Investment Bank (EIB) said in a recent report.

Higher oil prices and increased investment opportunities were highlighted as the principal factors for optimism, the bank said in its  "GCC Wealth Insight Report". 

The report is based on a survey of 100 HWNIs across the GCC, comprising nearly 90 percent GCC nationals and a little over 10 percent of expatriates residing in the GCC. 

Nearly half (45 percent) of respondents believed the global economic situation was improving, and more than three-quarters of HNWIs (85 percent) were optimistic about the economic prospects for the global economy over the next five years, the report found.

Meanwhile, views of an improved economic and business environment in the GCC more than doubled among HNWIs, with respondent numbers jumping from 31 percent to 71 percent and mere three percent instead of last year’s 41 percent feeling that the situation was worsening.

A vast majority of HNWIs (96 percent) surveyed remained optimistic on stabilized oil prices, upcoming high-profile events, and the benefits of economic diversification and reforms to induce a robust environment for businesses.

Meanwhile, the positive sentiment towards opportunities within the region prompted HNWIs to keep their assets closer to home, in line with previous years. Preference for investing locally was also prominent this year, as three-quarters of HNWIs believed investment opportunities in their home markets were "more lucrative" than diversifying abroad.

Real estate continued to receive significant exposure from GCC HNWIs (70 percent). Technology emerged as a sector of interest for regional investors, with a quarter of them currently allocating wealth to technology and as many planning to increase their exposure to this sector in the coming 12 months, the bank said.