UAE's Generation Z Embraces Cryptocurrency as Top Investment Choice

UAE's Generation Z Embraces Cryptocurrency as Top Investment Choice

By Staff Writer, 24 January 2024

A recent survey by International Financial Group Ltd (IFGL) reveals that cryptocurrency has become the investment of choice for Generation Z in the UAE.

Young investors, aged between 18 and 24, are increasingly turning to digital currencies, viewing them as an effective means to generate returns that outpace inflation.

The report indicates that one in ten UAE residents in this age group favors digital currencies, with Emiratis showing the greatest interest.

The survey also highlights a gender disparity, as 12% of males express a preference for cryptocurrencies compared to 6% of females.

Diverse Investment Preferences Emerge Among UAE Residents

The IFGL survey unveils diverse investment preferences among UAE residents.

While cryptocurrencies capture the attention of young investors, males in the survey exhibit additional interest in properties, commodities, and fixed-rate deposits.

Conversely, females show a preference for national bonds.

Mutual funds and cryptocurrencies are equally favored, slightly ahead of those opting for exchange-traded funds (ETFs).

Despite the growing popularity of digital assets, traditional investments like gold remain robust, securing the top spot as the most preferred investment for both Emiratis and Asians, tied with property investments at 24%.

Caution Advised Amidst Risky Investment Strategies

Simon Barwell, IFGL’s Marketing Director, notes that some UAE investors are embracing risky strategies, emphasizing the importance of building a diversified portfolio with varying risk and return profiles.

Cryptocurrencies, known for their volatility, and property, an illiquid investment, should be complemented with considerations for equities and bonds, both locally and overseas, according to Barwell.

He stresses the significance of a balanced strategy for long-term wealth accumulation, especially as age influences investment preferences, with expats aged 35 to 44 favoring properties in their home countries, and those aged 45 and above showing less interest in cryptocurrencies and ETFs, with IPOs being the least favored overall.

Source: Zawya

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