The Wealth Sentiments Index developed by the First Abu Bank declined 1.3 percent to 1040.66 points in July from 1054.52 in June.

The index, the first of its kind in the UAE, MENA Region, was launched in January 2017 in partnership with the research agency IPSOS, and Insurance provider, Generali, and established to measure the prevailing mood of affluent investors in the UAE market from a personal and business point of view. It's an indicator of the overall sentiments of the market, based on existing fundamental and economic factors.

The decline recorded in the month of July is attributable to a set of factors, including the fall in inflation rates resulting from the drop in prices of property, telecommunications, hospitality and culture while the "Purchasing Manager Index" went up as a result of the increase in production, which indicates an improvement in the economic outlook and confirms business sentiments remain high and companies are positive about the economy. The drop in loan growth, oil prices and tourist arrivals has its own bearing as well on the Wealth Sentiments Index in addition to the caution exercised by some investors.

The index is based on the insights from a panel of industry thought leaders who form the Wealth sentiments Index Council, which is composed of affluent individuals and industry experts.

Source: Wam