The rising trend of women investors is aided by the emergence of micro-investing apps, making it easy and affordable for individuals to invest small amounts of money regularly.
The UAE’s growing women empowerment is helping the fairer sex to break yet another traditional male fiefdom – market investment, with the number of women investors in the country shooting up by a whopping 51 percent in 2022 over the preceding year.
The spectre of household budgets getting upset in the wake of sharp price increases for products across categories is seen driving women to take to investments in a big way in inflation-beating saving options across a diversified asset portfolio, industry experts said.
The rising trend of women investors is aided by, among other things, the emergence of micro-investing apps, making it easy and affordable for individuals to invest small amounts of money regularly, promoting a saving culture among a wider population in the country.
A surge in women investors in the UAE
“The growth of women investors in the UAE is growing at an unprecedented rate,” Shivansh Rachit, founder and COO of Hedge & Sachs, the UAE-based leading investment and asset management company, told Arabian Business.
“Women, in particular, are breaking down barriers and becoming more involved in managing their wealth,” Rachit said.
Just one instance of this is available from the DLD (Dubai Land Department) data, which reported that women investing in real estate saw a rise of 50.7 percent in 2022 compared to the previous year, Rachit said.
The Hedge & Sachs top executive said the trend of the surge in women taking to investment is mainly seen as a hedge against inflation in the present context.
Household spending in the UAE is expected to grow by 4 percent in 2023, fuelled by rising rental prices, elevated domestic fuel prices, and demand-side solid pressures on products across categories.
“These factors have continued to exert pressure on prices in the current year as well, emphasizing the need for investors to hedge their investments against inflation,” Rachit said.
He said one way to mitigate the impact of inflation on investments is through diversification.
“Diversified investments can provide a hedge against inflation by allocating funds across different asset classes, such as equities, bonds, commodities, and real estate. This way, you can protect your wealth from the eroding effects of inflation and benefit from the growth potential of different investment markets,” Rachit said.
By spreading their investments across various asset classes, investors can also reduce their exposure to market risks and inflation, potentially enhancing their long-term returns, said the top executive of the investment company, which offers global financial services to individual and institutional investors in the UAE.
Rachit said the emergence of micro-investing apps is adding to the rising saving culture among women and also a wider population in the UAE.
“Micro-investing platforms offer numerous investment options, such as stocks, bonds, and ETFs, to suit different investment objectives and risk appetites.
“This trend is particularly attractive to younger generations who are often more comfortable with digital technology and seek low-cost, easy-to-use investment solutions,” Rachit said.
The article was originally published on arabianbusiness.com
