Recent geopolitical events have dramatically impacted global investment trends. The market is witnessing an uptick in panic buying, where investors make impulsive decisions driven by fear, rather than sound strategy.
Many central banks are taking steps to manage inflation through interest rate cuts and monetary policies, influencing investor sentiment. These actions affect everything from borrowing costs to bond yields, making it crucial for investors to remain vigilant.
Panic selling has become an increasingly common mistake, alongside other pitfalls such as chasing short-lived trends, failing to diversify, and missing out on significant opportunities.
However, in times of market volatility, one of the most critical principles remains the same: diversification. In unprecedented times, markets are notoriously unpredictable. While certain investments may lose value, others can surge, and spreading risk across various asset classes becomes essential.
Diversifying a portfolio – across stocks, bonds, real estate, commodities and different sectors and regions – helps mitigate the impact of volatility.
Investors should also keep an eye on sustainable investing trends. With the growing demand for renewable energy and clean technology, sectors focusing on environmental, social and governance (ESG) principles are becoming an essential part of a well-rounded portfolio.
This broad approach not only cushions against market swings but also positions investors to capitalise on opportunities in multiple areas.
Portfolio managers are encouraging clients to adopt a long-term view, focusing on balancing risk and reward amid global uncertainty. A well-defined strategy allows investors to buy undervalued assets, especially during downturns.
In addition to traditional diversification, private equity trends are also evolving. Companies are increasingly focusing on emerging markets, particularly in sectors such as health care, logistics and FinTech, where long-term growth prospects appear strong.
The key lies in strategic risk management and patience. One area often recommended for conservative investors during economic downturns is so-called “safe havens” such as government bonds, healthcare stocks, gold and cash equivalents, which tend to hold value or even appreciate in uncertain times.
Central banks’ ongoing efforts to stabilise inflation through interest rate adjustments play a crucial role in the performance of these safe-haven assets, particularly bonds, which tend to rise as interest rates fall.
On a macro level, ongoing geopolitical tensions, particularly in regions like the Middle East, are influencing market volatility. These tensions drive up commodity prices, disrupt global trade and steer many investors toward safe-haven assets.
As a result, financial markets can experience instability. To navigate these choppy waters, diversifying into commodities and equities in sectors that perform well during inflationary periods, such as energy, oil and fast-moving consumer goods (FMCG), becomes crucial.
Artificial intelligence and automation are rapidly shaping sectors such as technology and finance, presenting unique investment opportunities in industries geared towards automation and digitisation.
As inflation is easing in some regions, it is contributing to the expectation of future interest rate cuts, which could signal a shift in market dynamics.
For investors, this is an opportunity to reassess their reliance on energy-related assets and consider the broader range of growth opportunities, particularly in regions like the UAE.
While strong oil revenues have historically been a safe bet, sectors like technology, real estate, health care and tourism are gaining prominence as part of the UAE’s economic diversification strategy.
Governments in the Middle East are increasingly focused on creating growth in non-oil sectors. By promoting real estate, technology, travel and tourism, they are fostering a business-friendly environment for both residents and expatriates.
Additionally, the region’s drive for digital transformation has unlocked significant potential in areas like FinTech, AI and cyber security.
Diversifying a portfolio – across stocks, bonds, real estate, commodities and different sectors and regions – helps to mitigate the impact of volatility
Jose Thomas,
director, wealth management, Elixir Wealth
Health care, logistics and smart city developments are thriving due to government-backed innovation and infrastructure projects, offering lucrative opportunities for forward-thinking investors.
Sustainability is also becoming a key theme in the UAE’s investment landscape. With a strong focus on renewable energy and green building practices, the region is positioning itself as a leader in sustainable development.
Investors looking for long-term, responsible investments are finding attractive opportunities in clean energy and green tech sectors, which align with global ESG goals.
For local investors, staying informed about economic reforms – such as new tax regulations and foreign investment laws – is critical. These reforms are designed to create a more sustainable and competitive economic environment over the long term. This will, ultimately, benefit investors who position themselves accordingly.
In times of uncertainty, cultivating sound financial habits is paramount. Maintaining a diversified portfolio, regularly rebalancing, focusing on long-term goals, and employing disciplined strategies like dollar-cost averaging are proven methods to sustain growth through short-term volatility.
Jose Thomas is director of wealth management at Elixir Wealth Private
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'Ghostbusters: From Beyond'
Director: Jason Reitman
Starring: Paul Rudd, Carrie Coon, Finn Wolfhard, Mckenna Grace
Rating: 2/5
Queen
Nicki Minaj
(Young Money/Cash Money)
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
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
ORDER OF PLAY ON SHOW COURTS
Centre Court - 4pm (UAE)
Gael Monfils (15) v Kyle Edmund
Karolina Pliskova (3) v Magdalena Rybarikova
Dusan Lajovic v Roger Federer (3)
Court 1 - 4pm
Adam Pavlasek v Novak Djokovic (2)
Dominic Thiem (8) v Gilles Simon
Angelique Kerber (1) v Kirsten Flipkens
Court 2 - 2.30pm
Grigor Dimitrov (13) v Marcos Baghdatis
Agnieszka Radwanska (9) v Christina McHale
Milos Raonic (6) v Mikhail Youzhny
Tsvetana Pironkova v Caroline Wozniacki (5)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
'Cheb%20Khaled'
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