Only 37% of expats living in the Gulf sought out and received financial advice within their first two years living in the region, according to research.
Abu Dhabi-based independent financial advisory firm Hoxton Capital Management said its survey found that the number of expats receiving advice varied depending on how long they had been living abroad.
The Hoxton research found that 74% of expats who have been abroad for more than two years, have in some format discussed their finances with a professional.
But of this 74%, almost half were unimpressed with the adviser or the quality of the advice given.
Hoxton said it surveyed 1226 people based in the whole of the GCC – 77% of them were male and 23% female.
Due diligence
“If you are looking for financial advice, the importance of doing your due diligence cannot be overstated,” Hoxton managing partner, Chris Ball, said: “There is a clear difference between those receiving advice and those who do not.
“On average, people who receive advice get an increased return of 2% per annum on their portfolio compared with those who do not. So, if investor A, who invests on their own makes 3% in a year, investor B who has a good advisor will make 5%.
“This may not seem like a huge difference but when compounded over time it equates to a substantial amount.
“If investor A has £100,000 and leaves it invested for 20 years at an average annual return of 5%, they will have £265,000 at the end of 20 years.
“Investor B, who received advice on the same amount over the same time, would have £386,000 by the end of 20 years.”
