In the United Arab Emirates (UAE), there has been a profound transformation taking place—a transformation marked by women’s incisive foray into the world of investment. Recent market data shows that there has been a steady increase in the number of women investors with that number increasing by an impressive 51% in 2022 in the real estate sector compared to the preceding year, 2021, underlining a significant trend of escalating financial independence.
The stage is set for this trend to gather even greater momentum throughout 2023, with market projections confidently predicting an upward trajectory that might well exceed 50% year-on-year expectations by this year’s end. What sets this surge apart is not just its magnitude, but the diversity encapsulated within women’s investment portfolios. Women investors are demonstrating a shrewd knack for diversification, distributing their investments across a spectrum of asset classes including stocks, bonds, real estate, and alternative investments.
AED 58.8 billion
Within the diverse range of sectors, women are making deliberate choices that reflect an increasing insight and prowess as investors. Unsurprisingly, the real estate sector remains a cornerstone of women’s investment, constituting 40% of their portfolios. Recent data from the Dubai Land Department (DLD) shows that women’s investment in real estate has contributed over AED 58.8 billion to the sector. A recent government report also stated that women currently own 30% of the property in Dubai, signifying a substantial economic contribution and a testament to their growing influence on the nation’s financial landscape.
Notably, technology has emerged as a powerful contender, claiming an impressive 30% share of investments. The healthcare sector constitutes 20% of their investment choices with the remaining 10% distributed across various other sectors.
The following are some of the key factors that can be attributed to this significant and consistent surge in investment.
Growing number of women in the workforce – There has been a substantial increase in the number of women in the workforce. In the UAE, women now make up over 40% of the workforce, and this number is steadily growing. As women earn more money, they are more likely to invest it.
Increase in Women’s Income – Since 2018, the global share of women’s wealth has increased significantly. Globally, women’s income increased to $24 trillion in 2020, from $20 trillion in 2018, according to wealth manager Coutts. An increase in income directly correlates to a significant increase in women’s ability to invest.
Education and access to financial services – In the past, women in the UAE faced several barriers to investing, such as a lack of access to financial information and products. However, these barriers are gradually being removed, and there are now a variety of investment options available to women.
Our company actively set up an initiative earlier this year called Invest’HER’, which focuses on mentoring and educating women on investment opportunities, and has garnered attention and engagement since its launch.
An increase of nearly 25-30% in inquiries related to Invest’HER’ highlights the keen interest women are showing in investment and the resonance of this tailor-made financial solution.
An increase in micro-investing platforms offers women access to numerous investment options, such as stocks, bonds, and ETFs, to suit different investment objectives and risk appetites.
Furthermore, beyond the statistics and percentages, the surge in women’s investment in the UAE symbolizes a narrative of empowerment and progress. These women are not mere investors; they are architects of their own financial destinies, actively contributing to and shaping the UAE’s economic path.
Rachit Pant is the CEO of Hedge & Sachs
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