Eighty percent of Saudi HNWIs (high net worth individuals) view commodities as a safe investment proposition, Barclays Wealth said in its report "Risk and Rules: The Role of Control in Financial Decision Making." A high-net-worth individual, in private banking business, is defined as a person having investable assets (financial assets not including primary residence) in excess of $1 million. Saudi Arabia is the only country in the Middle East where all respondents expressed strong views on the risk factor of commodities, in stark contrast to other markets where up to 12 percent of investors have no particular opinion on commodities. Saudi investors view them as safe, with 62 percent of investors currently invested in commodities, higher than any other country included in the global survey. In Saudi Arabia, 90 percent of respondents showed a predisposition to purchase illiquid assets to avoid the urge to sell investments when markets fall. Saudi HNWIs also prefer to use rules and guidelines to help them make better financial decisions, with 96 percent of respondents saying that they use rules in financial decision-making. On a regional level, Saudi HNWIs are inclined to set financial deadlines (96 percent) and have a high tendency to delegate financial decisions to others (90 percent). The report further revealed that 94 percent of Saudi HNWIs consider investments in real estate to be safe over the next 12 months, further validating their tendency to invest in illiquid assets to avoid impulsive investment decisions during market volatility. Ayman Sejiny, Managing Director and Chief Executive Officer of Barclays Saudi Arabia (BSA), said: "Understanding Saudi high net worth individuals is extremely important for the wealth management industry as they include some of the globally recognized investors operating in a market that is witnessing noticeable growth figures. The report provides unique insights not only into their behavior but also into their outlook for the future, and in doing so, BSA will have the opportunity to further tailor its services to cater for the financial objectives and requirements of Saudi family offices, high net worth and ultra high net worth individuals as well as their corporate needs especially that most UHNWIs in the Kingdom are owners of top tier corporations that largely benefit from BSA's Private and Investment Banking services." As for cash and alternative investments, over 60 percent of Saudi HNWIs view investment in cash as risky, while only a minority (24 percent) find it safe. Among all respondents surveyed, less than 20 percent currently hold cash investments. Moreover, HNWIs in the Kingdom revealed mixed sentiments toward investments in alternative strategies: one half (50 percent) considers them safe, while the other half (48 percent) sees alternative strategies as risky. Results also show that 66 percent of Saudi investors find developed market equities safe, making them a more preferable investment choice over emerging market equities. Half of all respondents (50 percent) consider investments in emerging market equities as risky for the next year. Seventy percent of respondents consider developed government bonds safe. Corporate and investment grade bonds fare much worse and are considered safe by only 28 percent. Furthermore, investments in high yield and emerging market bonds are in fact considered safe by 42 percent of investors. Globally, 41 percent of HNWIs wish they had more self-control over their financial behavior. The report indicates that a need for increased financial discipline is likely to be felt most by those at the wealthiest end of the scale, where 45 percent of respondents wish they had more self
