Indian expats in the Gulf region are rapidly shifting their investment preferences away from traditional housing purchases in India towards stocks, mutual funds and structured financial planning amid the ongoing Iran war, according to a report by Equirus Wealth.
Based on responses from 8,300 non-resident Indians (NRIs) in the Gulf Cooperation Council (GCC) region—which includes the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain—the study indicates a structural shift in the way Indians living abroad approach wealth creation in the face of growing geopolitical unpredictability in West Asia.
According to the report, 42 per cent of NRIs in the GCC stated they would be willing to invest fresh funds in Indian stocks in the future, and 73 per cent of them had increased their exposure to Indian stocks and mutual funds.
Meanwhile, the Indian stocks surpassed fixed income and international markets to become the most favored asset class for future investments.
The report noted that about 42 per cent of participants said that their top choice for future investments will be Indian stocks, with fixed income and debt instruments coming in second and third, respectively, at 23 per cent.
It highlighted that 11 per cent of investors favoured foreign stocks, while about 15 per cent intended to stay in a “wait-and-watch" position. Indian real estate received only 2 per cent of the preference, compared to 4 per cent for gold and cash/liquid assets.
The report shows a substantial difference from past investment trends among Gulf NRIs, who have historically used their remittances to buy real estate in India, including land, second residential properties, and other assets related to real estate.
It further outlines that up to 40 per cent of investors intend to reduce their exposure to the Indian real estate, indicating a long-term portfolio reallocation rather than a short-term shift.
On net allocation trends, gold and fixed deposits/debt instruments experienced net rises of 16 per cent and 15 percent, respectively, while Indian stocks and mutual funds saw a net positive allocation shift of 54 per cent.
On the other hand, foreign stocks and cash holdings both fell by 4 per cent, while real estate had a net decrease of 27 per cent.
