Salaries in the UAE are expected to rise by an average of between 2% and 5% this year and 53% of the country’s workforce is expecting a raise. According to Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., intelligently investing these extra earnings will prove useful not only amid the looming world recession but even well beyond it.
Global data shows that investors are expecting to retire three years earlier than non-investors, and the actions of UAE residents demonstrate a solid understanding of this; at the onset of 2023, the country was ranked as the fifth most “stock-obsessed” in the world. Singapore, India, Canada, and the United States were the only other countries to rank higher, while no other Middle Eastern countries were able to crack the top ten. The study revealed that the UAE has the fourth-highest search levels for the term ‘swing trading’ and is the fifth country most interested in ‘day trading’.
A recent survey also found that nearly 50% of UAE residents received bonuses last year, with 31% of these respondents raking in upwards of AED 20,000 and 5% earning over AED 50,000. At 82%, an overwhelming majority of these individuals plan to use their annual bonus as means of investing in their future. Property investment, retirement savings, debt payments, and child education were among the key priorities at 24%, 17.6%, 15% and 15%, respectively.
Bas commented: “Today, there are more investment opportunities than ever before. The rise of the digital economy has made this possible with options ranging from virtual assets to forex. At the same time, traditional means of investing in the form of real estate, gold, stocks, and more are still viable avenues to consider. However, studies have found that nearly 40% of women and approximately 20% of men around the world aren’t investing. This can be attributed to a lack of understanding of where to start, but with the current state of the world, individuals must prioritize financial planning to build a future-proof foundation.”
As of 2018, 57% of global investors perceived traditional financial advisors as ‘very valuable’. Today, recommendations by a financial advisor influence 13% of UAE residents’ investing decisions, but with younger generations becoming more financially savvy, this is poised to increase in the coming years. Industry studies estimate that professional financial advice can add between 1.5% and 4% to portfolio returns over the long term. Bas is making wealth creation more affordable for all via his securitisation firm, DHF Capital; with his guidance, the company has provided investors with an average yearly return on investment (ROI) of more than 20%, while investors who have worked with him since the company’s inception have witnessed a 114% ROI, more than doubling their initial investment.