Index score decreases from 1054.52 in June, to 1040.66 in July 2017
First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest financial institutions, has announced the latest score of its Wealth Sentiment Index (WSI), which has decreased from 1054.52 in June, to 1040.66 in July 2017, reflecting a 1.3% change from the previous month.
The July score reflects a range of factors, including a fall in inflation, driven by lower prices for housing, communication, recreation and culture, and an increase in the Purchasing Manager’s Index, due to a rise in output and new orders, signaling an improvement in the UAE’s economic outlook. At the same time, a fall in loan growth, oil prices and tourism, as well as some caution amongst personal investors, has negatively impacted the WSI.
According to WSI Council members, the most important factors affecting the UAE economy are the movement of oil prices, and the political situation around the globe. The Index revealed that WSI Council Members remain optimistic about the UAE economy, however they are adopting a cautious approach when it comes to personal investments.
The Wealth Sentiment Index, the first-of-its-kind for the UAE and MENA region, was launched in partnership with research agency, IPSOS, and insurance provider, Generali, in January 2017, and established to measure the prevailing mood of affluent investors in the UAE market, from a personal and business point of view. It is an indicator of the overall sentiment of the market, based on existing fundamental and economic factors.
The index score is based on insights from a panel of industry thought leaders, who form the Wealth Sentiment Index Council, which is composed of affluent individuals and industry experts (60%). The research is based on three key areas: optimism within the UAE market, growth prospects in respective industries and personal investment choices. This research is combined with key market indicators, such as GDP, inflation, stock indices and commodity prices, alongside sectorial indicators including real estate, tourism and trade, which is weighted at 40%.