2/3rd of UAE’s Indian residents plan more investment in next 3 years: Report

At least two third of Indian expats in the UAE mull to boost their investments in the country in the next three years, says HSBC’s new Global Indian Pulse report.

The investment intentions of global Indians in the UAE are significantly higher than the global average of 59 per cent of expatriates who plan to invest in their country of residence as they are upbeat about their life in the host country, said the survey report.

According to the survey findings, sustainability plays a major role in Indian investors' decision making
According to the survey findings, sustainability plays a major role in Indian investors' decision making. Photo courtesy: Twitter/@GMP_Masterpiece

“Global Indians in the UAE are in a good place – most are happy (84 per cent), safe (88 per cent), and financially secure (72 per cent), and despite the upheaval of the pandemic, the majority are feeling optimistic about the future,” said the HSBC report.

The survey, conducted by industry research firm Ipsos, is claimed to be the most comprehensive cross-border research of its kind into global Indian attitudes and motivations around their growing investments and connections back to India.

Real estate, stock markets, and private businesses are among the main investment targets of Indian expats residing in the UAE.

For 56 per cent of global Indians in the UAE who took part in the survey, property is the most important investment, followed by stocks and shares (40 per cent). Investing in UAE businesses is particularly important for 51 per cent of affluent expat Indians, which highlights the depth of the commitment many wealthier Global Indians have with the UAE. Around nine in 10 are already investing in the UAE (87 per cent) and India (93 per cent).

Abdulfattah Sharaf, UAE CEO and head of International at HSBC, said the UAE is home to the largest number of Indians abroad (3.5 million).

“Our study delves into the deep connection global Indians maintain with India, but also with the UAE. India is already the UAE’s second-largest trading partner and as both economies continue to prosper and grow so will the ambitions of Indian entrepreneurs, businesses and High Net Worth Individuals based here,” Sharaf said.

According to the survey findings, sustainability plays a major role in Indian investors' decision making, with more than four-fifths (78 per cent) of UAE Global Indians saying environmental and social initiatives including electric cars (39 per cent), recycling (35 per cent) and skills development (34 per cent) are a key part of their decision making when investing in the UAE.

“This is particularly the case for affluent Global Indians (91 per cent) and for over 30s (80 per cent), both groups identified as planning to increase their investments in the UAE and India in the next three years,” it said.

“It’s encouraging to see the focused alignment between the investment appetite of affluent UAE Global Indians with the country’s transformation and sustainability plans. The UAE has been confirmed as the host of the COP28 summit in 2023 and the Middle East is set to play a leadership role in the transition to net-zero.

"Supporting all of our customers around the world – sovereign, corporate and personal – on their respective journeys is part of HSBC’s own commitment to helping lead the transition to a net-zero global economy,” said Sharaf.

“Indians in the UAE also back technology and tourism as the sectors most likely to perform strongly in the UAE over the next decade or so. They are most likely to be planning to increase their investments for financial reasons, but over a third are motivated by wanting to promote positive change in the UAE. This illustrates the sense of commitment that many Indians have towards their host country.,” said the report.

Ipsos interviewed 4,152 global Indians in nine markets USA (823), Canada (395), UK (1,004), Saudi Arabia (151), UAE (1,051), Hong Kong (75), Singapore (439), Malaysia (103), Australia (111).