In a world of constant change, building a future-ready investment portfolio requires careful consideration and diversification across asset classes and regions.
As we look ahead to the year, it's important to consider the anticipated trends in various asset classes which, besides industry-specific factors, are often shaped by a combination of economic conditions, geopolitical factors and global events.
Investors should allow a certain degree of flexibility to adapt to changes linked to unpredictable factors, and focus on the allocation to equities, bonds and commodities, while keeping an eye on trends in technology, ESG (environmental, social and governance), inflation and geopolitical stability.
A critical factor to consider is an investor's risk tolerance level and, therefore, help users to make informed decisions.
Let’s explore expected trends and try to provide sample portfolio allocation recommendations for individuals with low, medium and high-risk tolerance levels.
These are just indications that need to be fine-tuned, carefully considering risk tolerance, investment objectives, personal commitments and the complexity of the investor’s financial position.
ESG considerations will play a more significant role in stock selection as investors increasingly prioritise ethical and sustainable investments; and ESG indexes have shown a tendency to overperform general stock indexes.
The technology sector is expected to continue its growth, driven by advancements in artificial intelligence and digital transformation.
Emerging market stocks may offer opportunities for higher returns as they benefit from economic development and increased global trade, but they are also very susceptible to geopolitical tension, trade levels and overall market sentiment.
As for fixed income, as bond valuations and returns are strictly linked to interest rate levels, the anticipations provided by central banks should be carefully analysed.
However, after the surge in interest rates, buying bonds now is still a good strategy, especially for investors looking for the medium- to long-term stability of their portfolio.
In case interest rates start to tick lower, bonds could also provide extra returns as their price will adapt and rise.
The risks of such a strategy might be partially hedged by using inflation-linked bonds.
When it comes to commodities, oil prices are set to remain volatile due to geopolitical tensions and supply-demand dynamics.
The impact of the focus on renewable energy is marginal in the short term, given the speed at which the sector is growing and a great asymmetry between advanced countries and emerging economies, with the latter offsetting lower demand in the former.
Gold is considered a hedge against uncertainty, a safe haven when things get turbulent in the economy and financial markets.
Nonetheless, bullion it is trading above $2,000 per ounce and near its all-time high.
Therefore, gold investment should be carefully sized to avoid an unexpected impact on portfolio volatility.
Before looking at allocations for three different risk appetites, we need to consider the following:
Always keep at least 15 per cent in cash to tackle uncertainty, family emergencies and to take advantage of new opportunities.
Stock portfolios, for each level of risk, should be as diversified as possible, both in terms of sectors and geographics.
Bond portfolios should also be diversified between corporate, government, high-yield and emerging markets, depending on the risk tolerance level.
Low-risk tolerance
Stocks: 25 per cent. Low-risk investors should have a modest allocation to stocks, focusing on stable, dividend-paying companies and sectors. Tech companies can still be part of the stock allocation, but with minimal wight.
Bonds: 50 per cent. A substantial portion of the portfolio should be allocated to high-quality government and corporate bonds to provide stability and income.
Commodities (gold): 10 per cent. A small allocation to gold can act as a hedge against inflation and market volatility.
Medium-risk tolerance
Stocks: 40 per cent. Medium-risk investors can have a larger allocation to stocks, including exposure to growth and value stocks across various sectors.
Bonds: 35 per cent. Maintain a balanced allocation to both government and corporate bonds, adjusting the duration based on interest rate expectations and adding a small portion of high yield and emerging markets bonds.
Commodities (oil and gold): 5 per cent each. A modest allocation to both oil and gold can add diversification and mitigate risk.
High-risk tolerance
Stocks: 50 per cent. High-risk investors can have a significant allocation to a diversified portfolio of stocks, including international and emerging market equities.
Bonds: 20 per cent. A smaller allocation to bonds is advisable, with a focus on short-duration and high-yield bonds for potential income.
Commodities (oil and gold): 5 per cent each. A small allocation to both oil and gold can serve as a hedge, while providing potential for capital appreciation.
Alternatives: 5 per cent. Consider allocating a portion to alternative investments like real estate investment trusts or hedge funds for added diversification.
Roberto d’Ambrosio is the chief executive of Axiory Global
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Attacks on Egypt’s long rooted Copts
Egypt’s Copts belong to one of the world’s oldest Christian communities, with Mark the Evangelist credited with founding their church around 300 AD. Orthodox Christians account for the overwhelming majority of Christians in Egypt, with the rest mainly made up of Greek Orthodox, Catholics and Anglicans.
The community accounts for some 10 per cent of Egypt’s 100 million people, with the largest concentrations of Christians found in Cairo, Alexandria and the provinces of Minya and Assiut south of Cairo.
Egypt’s Christians have had a somewhat turbulent history in the Muslim majority Arab nation, with the community occasionally suffering outright persecution but generally living in peace with their Muslim compatriots. But radical Muslims who have first emerged in the 1970s have whipped up anti-Christian sentiments, something that has, in turn, led to an upsurge in attacks against their places of worship, church-linked facilities as well as their businesses and homes.
More recently, ISIS has vowed to go after the Christians, claiming responsibility for a series of attacks against churches packed with worshippers starting December 2016.
The discrimination many Christians complain about and the shift towards religious conservatism by many Egyptian Muslims over the last 50 years have forced hundreds of thousands of Christians to migrate, starting new lives in growing communities in places as far afield as Australia, Canada and the United States.
Here is a look at major attacks against Egypt's Coptic Christians in recent years:
November 2: Masked gunmen riding pickup trucks opened fire on three buses carrying pilgrims to the remote desert monastery of St. Samuel the Confessor south of Cairo, killing 7 and wounding about 20. IS claimed responsibility for the attack.
May 26, 2017: Masked militants riding in three all-terrain cars open fire on a bus carrying pilgrims on their way to the Monastery of St. Samuel the Confessor, killing 29 and wounding 22. ISIS claimed responsibility for the attack.
April 2017: Twin attacks by suicide bombers hit churches in the coastal city of Alexandria and the Nile Delta city of Tanta. At least 43 people are killed and scores of worshippers injured in the Palm Sunday attack, which narrowly missed a ceremony presided over by Pope Tawadros II, spiritual leader of Egypt Orthodox Copts, in Alexandria's St. Mark's Cathedral. ISIS claimed responsibility for the attacks.
February 2017: Hundreds of Egyptian Christians flee their homes in the northern part of the Sinai Peninsula, fearing attacks by ISIS. The group's North Sinai affiliate had killed at least seven Coptic Christians in the restive peninsula in less than a month.
December 2016: A bombing at a chapel adjacent to Egypt's main Coptic Christian cathedral in Cairo kills 30 people and wounds dozens during Sunday Mass in one of the deadliest attacks carried out against the religious minority in recent memory. ISIS claimed responsibility.
July 2016: Pope Tawadros II says that since 2013 there were 37 sectarian attacks on Christians in Egypt, nearly one incident a month. A Muslim mob stabs to death a 27-year-old Coptic Christian man, Fam Khalaf, in the central city of Minya over a personal feud.
May 2016: A Muslim mob ransacks and torches seven Christian homes in Minya after rumours spread that a Christian man had an affair with a Muslim woman. The elderly mother of the Christian man was stripped naked and dragged through a street by the mob.
New Year's Eve 2011: A bomb explodes in a Coptic Christian church in Alexandria as worshippers leave after a midnight mass, killing more than 20 people.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
