(MENAFN- Khaleej Times) Most of high net worth individuals, or HNWIs, in the GCC are upbeat about the long-term economic prospects of the region and prefer to keep their assets closer to home, a survey revealed on Sunday.
The region's wealthy - individuals with $2 million or more in investable assets - said they prefer to keep assets closer to home since they have confidence in the stability of their local economy and wanted to have greater personal control over their investments.
The second edition of GCC Wealth Insight Report, which is based on the survey, said while 55 per cent of the respondents said the economic situation in the Gulf is improving, 31 per cent said the global economy is improving.
HNWIs in the UAE (89 per cent), Qatar (83 per cent) and Oman (75 per cent) are the most optimistic among the GCC countries about the prospects of their economies
The survey, released by Emirates Investment Bank, a private and investment banking boutique, shows that respondents were more cautious towards the global economy compared to last year, with the view that the global economic situation is worsening almost doubling (29 per cent) on last year's (16 per cent).
However, 86 per cent say they are very or somewhat optimistic about prospects for the Gulf region over the next five years with 78 per cent saying the same thing for the global economy.
There is an increasing preference to keep assets closer to home, which has risen 19 percentage points since last year to 83 per cent.
Regional HNWIs are also more likely to have a local rather than international bank to help manage their wealth compared to last year, with 80 per cent saying they prefer to use a local bank compared to 59 per cent last year.
Respondents said they believe that local banks provide easier access, have a better understanding of the local market or regulations, and are safer. The top four factors for selecting a local bank have not changed since last year.
Philanthropy has also featured prominently in GCC countries in this year's survey, with 86 per cent of respondents saying they dedicate a portion of their wealth to charitable giving, mostly to humanitarian charitable causes. Sixty per cent of those HNWIs who currently allocate a portion of their wealth to charity are planning to increase their distribution to charity in the near future.
Khaled Sifri, chief executive officer of Emirates Investment Bank, said while views of the global economy are more negative than last year, with respondents in this year's survey almost twice as likely to say the situation is worsening, HNWIs are keen to continue growing their wealth and remain optimistic about future prospects globally and in the Gulf region in particular.
"There are strong signs of moving beyond the days of the financial crisis, albeit with a more cautious and perhaps more regional investment approach. We believe that the continued growth-focused attitude of regional entrepreneurs reinforces the positive outlook for the GCC region and global economy in the coming years," he said.
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