Young, wealthy investors in Middle East focus on Islamic assets

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Younger high-net-worth individuals (HNWIs) in the Middle East are more likely to seek investments that reflect their values, such as sustainable and Sharia-compliant assets, compared with their older counterparts, according to a survey by Geneva-based wealth and asset manager Lombard Odier.

About 91 per cent of respondents under the age of 40 said they already invest in Islamic assets, while 88 per cent plan to increase their allocations to sustainable assets, the survey said.

Lombard Odier polled 300 HNWIs, of which 200 were under the age of 40, across the Middle East, including the UAE, Saudi Arabia, Kuwait and Oman. The respondents have a net worth of least $1 million in investable assets.

“[There is] a consensus emerging between older and younger investors in several areas, but specifically in values-based investing,” said Arnaud Leclercq, partner holding prive and head of new markets at Lombard Odier, said. “The next generation’s enthusiasm for Islamic and sustainable investing … is very encouraging.”

In May, a separate survey by Lombard Odier found that 85 per cent of HNWIs in the Middle East intended to increase their exposure to environmental, social and governance (ESG) and sustainable investments.

Global sustainable inflow funds slowed in the third quarter of this year, attracting $22.5 billion of net new money, down from $33.9 billion in the second quarter, financial services research company Morningstar said earlier this month.—Thenationalnews

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