Expat investing
investment flight path Channel Islands firms are helping the many expats based in the Middle East to build diversified and sustainable investment portfolios amid a complex regulatory environment
Words: Gill Wadsworth
THE MIDDLE EAST is one of the most
popular destinations for expats. Nearly 90% of the United Arab Emirates’ population and more than a third of those living in Saudi Arabia are from abroad. In Qatar, just 15% of the population comprises domestic nationals – and the story is similar in Kuwait, where 70% of inhabitants are from overseas. While most foreign nationals living in the Middle East are less wealthy migrant workers from India, Egypt, Bangladesh and Ethiopia, there are plenty of westerners who have chosen to set up in the Gulf
34 middle east edition 2021
because of a boom in employment opportunities. These range from work in the medicine and healthcare sectors, to IT and artificial intelligence and, more recently, renewable energy. Yet while there may be ample job opportunities for those wanting to relocate to enjoy considerably warmer climes and tax-free salaries, there are challenges when it comes to building an investment portfolio that suits the vagaries of an expat lifestyle in the Middle East. Matt Wintour, Head of Adviser Solutions at Brooks Macdonald International, says: “Identifying the challenges for expats living in the Middle East is in great measure the same as anywhere in the world. Attempting to apply the ethics and standards applicable to one’s home country is fraught with danger, as there will inevitably be unexpected differences.” Before expats get caught in the complexities of where and how to invest, the starting point should be deciding goals
and objectives. Michael Bull, Executive Director at Quilter Cheviot in Jersey, says: “We focus on the clients individually rather than where they are based. That way, we can manage their personal investment risks and meet their expectations when it comes to returns and objectives.”
SPREADING THE RISK Bull’s colleague, Keith Owen, Business Development Director at Quilter Cheviot, based in the Dubai International Financial Centre (DIFC), adds that the main goal for all investors, irrespective of geography, is to spread risk across asset classes. “It doesn’t matter if you live in the UK, Dubai or Timbuktu, diversification should be a major part of anybody’s investment strategy,” Owen says. However, while it might be relatively straightforward for someone in the UK to find a domestic financial provider to build an investment portfolio giving them access to heavily regulated funds and
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