Fixed income gains ground among UAE investors amid market volatility

As global markets continue to grapple with uncertainty and elevated geopolitical risks, fixed income investments are emerging as a vital component in the portfolios of UAE investors.

- Somshankar Bandyopadhyay

Kareena Moledina, Lead for Fixed Income Client Portfolio Management (EMEA) at Janus Henderson Investors, shared insights with Khaleej Times on why bonds are becoming increasingly relevant in the region’s investment landscape.

“Fixed income offers three key benefits: steady income, capital preservation, and diversification,” Moledina explained. With yields now at attractive levels, investors can lock in reliable, tax-free cash flows without taking on excessive risk. This is particularly valuable in the UAE, where many investors rely on consistent income to meet ongoing financial commitments.

Beyond income generation, bonds serve as a defensive anchor in portfolios heavily weighted toward equities and real estate. “When markets turn volatile, fixed income helps preserve capital,” she said. “It’s a stabilising force, especially in economies like the UAE’s, where exposure to property and energy is significant.”