It's vital to have financial advice in the UAE, say experts

Dubai - Survey reveals more than 7 out of 10 people don’t have a financial advisor.

By Staff Report

Published: Tue 2 Feb 2021, 10:50 AM

More than seven out of 10 people in the UAE currently don’t have have a financial advisor, reveals a new research.

“Furthermore, less than half (44 per cent) of those in the top income bracket of Dh40,000 or more a month have a financial adviser, according to a survey by wealther manager Quilter and YouGov.

The survey results revealed that just 10 per cent of 40 to 50-year olds and only 12 per cent of 51 to 60-year olds have a financial advisor, which could mean that these age groups are missing out on getting advice at a crucial time in their life.

Out of the various nationalities in the UAE, westerners were most likely to have an adviser with 21 per cent saying that they currently take financial advice, followed by 20 per cent of Emiratis.

When respondents were asked what they would do if they had extra money to save or invest, just 10 per cent said that they would seek financial advice.

“This research shows that there is a clear need in the UAE to change the perception and understanding of advice and financial planning and the value it offers. Financial advice is about more than just the investment performance. It’s about taxation, investment choices and how an adviser can help you navigate your emotions, behavioural biases, and the practicalities that life throws at you,” said Brendan Dolan, global distribution director of Quilter International.

Mark Leale, head of Quilter Cheviot’s Dubai branch office, said, “Our lives are complex and as such the value that a good financial adviser brings to the table should not be underestimated. Working with a properly regulated firm and qualified adviser, should offer the guidance and reassurance that you are making the appropriate decisions based upon your individual circumstances. This should develop into a trusted relationship wherein regular reviews ensure that you continue to structure your finances appropriately.”

He said: “It is true that there may be elements that you can put in place yourself but it is often the way in which these individual products or services interact with and potentially impact upon each other in order to build up a financial plan that can be forgotten. A financial adviser should therefore be much more than just a salesman that you see to complete a one-off transaction.”

The survey covered 1,000 people in the UAE in November 2020.

-waheedabbas@khaleejtimes.com