Affluent investors in the UAE are accelerating a shift into alternative assets and gold, reducing their reliance on cash at a pace that outstrips global counterparts, according to HSBC’s 2025 Affluent Investor Snapshot.
Based on a survey of 10,797 respondents across 12 markets, including 697 in the UAE, the study reveals a sharp drop in cash allocations among UAE investors to just 13%, the lowest of any country surveyed. This compares with a global average of 20%, underscoring a growing appetite in the region to deploy capital into higher-yielding or diversified instruments amid shifting global economic conditions.
The data points to a broader trend of portfolio rebalancing, with investors in the UAE increasing exposure to gold and alternative assets. Allocations to gold rose five percentage points over the past year, with 57% of those surveyed saying they intend to invest in the metal. Interest in tokenised gold, digital versions of the asset, is also gaining traction, with nearly 40% of UAE investors expressing interest in that format. Meanwhile, 36% of UAE respondents reported ownership of alternative investments such as private equity and hedge funds, up from 32% the previous year.
Confidence levels among UAE investors are also among the highest globally. Respondents reported strong conviction in meeting financial goals across all time horizons, short, medium, and long term, and also reported a higher-than-average satisfaction rate with their current quality of life. HSBC attributes this optimism in part to the region’s relative economic stability and increasing appeal as a hub for global talent and capital.
Dinesh Sharma, Head of International Wealth and Premier Banking for the Middle East at HSBC, said the data reflects a significant behavioural shift among investors in the UAE. “With cash allocations at the lowest globally, UAE investors are actively putting their capital to work, including through alternatives and gold,” he said. “They’re not just focused on domestic opportunities like home ownership, but are also seeking international diversification, particularly in markets like the US and UK.”
That international outlook is backed by the data. Fifty-six per cent of UAE investors said they plan to expand investments overseas, the highest level among all countries in the survey. Their top destinations for offshore portfolios include the US, UK, and Germany.
Investment decisions are increasingly informed by digital sources. Social platforms were cited as the top channel for information by 53% of respondents, followed by bank-provided digital tools and third-party online platforms. However, traditional advice still plays a strong role, with 62% of investors consulting wealth specialists and 35% turning to family members for financial guidance.
Globally, the report found that younger investors are driving the move out of cash, with Gen Z and millennials reducing average cash holdings from 31% to 17% over the past 12 months. Yet future views on cash remain split. Half of all affluent investors globally expect to maintain current levels, while 20% plan to reduce and 30% anticipate increasing their holdings.
In the UAE, 28% of investors plan to deploy more cash over the next year, second only to mainland China, where 34% of respondents expect to raise their allocations.
