Market Views, Insight

Global Economic Outlook

October 26, 2021

Global markets have picked up as productivity and trade continue to recover strongly. Most major economies are back at pre-pandemic GDP levels, and the global investment outlook continues to be strong heading into the last quarter of the year. Traditionally, we see asset prices increase, as investment sentiment heats up in Q4. This reflects in the rising price of assets such as property, which is back at its 2019 levels in Dubai, and Digital Assets, where most majors are at, are approaching all-time highs, recovering from the Q2 slowdown.

The start of the second half of the year frightened investors, with the Delta-Variant threatening a summer of choppy recovery. But, these fears were calmed as vaccines remained effective and economies continued to show steady recoveries. Global economic fundamentals remain strong; individual and corporate savings are up year on year, despite higher consumer expenditures and capital expenditures, such as real estate, continue a sharp turnaround, as demand for hedging assets increases.

Dubai Exceeds Expectations in Quarter Three

While many countries began to explore reopening their borders and implemented strategies to restimulate their economies, Dubai was completing its preparations to play host on the global stage during EXPO 2021. The exemplary crisis management shown by the government of the UAE resulted in the highest percentage of vaccinations per capita worldwide allowing the country to deal with the repercussions of the pandemic more swiftly than any other nation. Dubai is thriving and ready to welcome the world in quarter four. The result of this is already visible, as the real estate markets have returned to pre-pandemic levels. The demand for Dubai properties increased sharply, specifically in the off-plan sector where developers are providing investors with lucrative investment opportunities. AIX is proud to have assisted numerous investors in purchasing their own properties by providing detailed financial plans to assist with property payment plans through investment returns. Our investors are enjoying significant returns as their assets appreciate, and we continue to assist them in navigating the global economic markets and provide them with consistent returns.

“Preparation for various regional events, such as Expo in the UAE and the World Cup 2022 in Qatar, an easing of regional tensions, and spending by the Saudi Public Investment Fund

(PIF) will also support growth” – ICAEW

Investing in the Future

As the world begins growing again and global trade and supply chains are being reactivated and expanded, the potential of blockchain technology to revolutionize global business is back at the forefront of many investor’s minds. We have seen an almost doubling in the global digital asset market cap this quarter, and blockchain adoption on an institutional level is exponentially accelerating. Many major financial institutions such as JP Morgan Chase have now launched their own blockchains, and almost all fund managers are now offering their investors some exposure to digital assets.

We focus on investing in forward-thinking industries such as supply-chain blockchains and leverage our experience in identifying and anticipating future trends to provide our investors with consistently above-average returns. The achievements of this quarter add to our already impressive history of helping our investors achieve their financial objectives so they can focus on what matters to them most in life as we help them grow their wealth sustainably.

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