The Covid-19 pandemic is far from over, but 2021 has been a surprisingly good year for investors, continuing last year's recovery.
Trillions of dollars’ worth of global stimulus measures and hopes of a post-lockdown spending spree have powered share prices to new highs, with the US stock market continuing its seemingly endless bull run.
Pretty much every global stock market has benefited, but other asset classes have trailed, notably cryptocurrencies, gold and bonds.
The US
The US stock market led the world for more than a decade and its run of form continued this year. The S&P 500 index of top stocks returned 336 per cent over the past decade and another 14 per cent in the first six months of 2021.
Last summer, iPhone maker Apple became the world’s first $2 trillion company and in June, Microsoft joined it. Amazon isn’t far away at $1.85tn, while Google owner Alphabet is valued at $1.71tn. Facebook has just joined Club Trillion.
The fireworks could continue, Darius McDermott, managing director of FundCalibre, says. “By value, the US market represents about half of all quoted companies in the world and they are among the most dynamic and innovative.”
If President Joe Biden’s $1tn infrastructure spending bill is passed, the country will spend a further $1tn (£730 billion) upgrading roads, bridges, rail networks, water pipes and broadband, turbo-charging growth.
The only time they [valuations] have been more expensive was at the height of the dotcom bubble
Jason Hollands,
managing director of Bestinvest
One worry is that valuations are expensive, says Jason Hollands, managing director of investment platform Bestinvest. “The only time they have been more expensive was at the height of the dotcom bubble.”
Inflation is another concern, as consumer price growth hit 5 per cent in the year to May and is expected to climb higher, which could force the US Federal Reserve to hike interest rates to stop the economy overheating.
Investors ignore the US market at their peril, Mr Hollands says.
“US-listed companies make up 58 per cent of the MSCI AC World Index, with second-placed Japan at just 6 per cent, China third with 4.9 per cent and the UK is fourth at 3.9 per cent,” he adds.
Outlook: The US remains the one to beat but don’t get carried away as it looks pricey and rival stock markets may start to play catch up.
The UK
After more than five years in the doldrums, largely due to Brexit uncertainty, the UK is starting to play catch up.
The FTSE 100 index of top UK blue chips is up 10.9 per cent so far this year, despite a fraught relationship with the EU, and the fast-spreading Covid-19 Delta variant.
Yet, the country has been buoyed by its vaccine success, with more than 45.4 million receiving at least one jab.
Overseas investors have taken note and are tempted by bargain valuations after years of underperformance.
“While the S&P 500 trades at 21.2 times forecast company earnings for the next year, UK companies are notably cheaper at just 13.7 times forecast earnings,” Mr Hollands says.
By value, the US market represents about half of all quoted companies in the world
Darius McDermott,
managing director of FundCalibre
Cash-rich overseas bargain hunters are lining up to put in competing bids for under-priced UK companies, led by US equity funds.
The country’s fourth biggest supermarket chain Morrisons attracted bids from three US private equity funds. Mining, healthcare and consumer goods companies are also top targets.
Foreign investors now own two-thirds of UK-listed shares, according to research from Orient Capital, with US, European and Chinese multinationals leading the charge.
Smaller UK companies have done even better than the blue chips, with the FTSE Small Cap index up 19.4 per cent so far this year.
Outlook: Brexit may not have been a roaring success but it hasn’t been an outright disaster either. At least the argument is largely settled and that allows investors to focus on the financial rather than political issues. The UK is cheap. Let’s hope the Covid-19 Delta variant doesn’t plunge it back into lockdown.
Europe
Europe may have its political and economic worries, but its stock market continues to defy the sceptics.
The MSCI Europe (excluding the UK) index is up an impressive 12.3 per cent so far this year, and Ben Ritchie, head of European equities at Aberdeen Standard Investments, says there could be more to come.
“European companies are well positioned to lead in green technologies, have exposure to fast-growing emerging markets and great intellectual property built up over decades,” he says.
Europe is a leader in consumer brands, pharmaceuticals, luxury and industrial technology, according to Mr Ritchie.
Economic prospects and liquidity conditions are better than elsewhere [in Europe], while equity valuations are reasonable
Luca Paolini,
chief strategist at Pictet Asset Management
The danger is that it may struggle to repeat its strong first half. “Expectations for earnings and economic growth are also high,” he adds.
Favouring Europe, Luca Paolini, chief strategist at Pictet Asset Management, says: “Economic prospects and liquidity conditions are better than elsewhere, while equity valuations are reasonable.”
Outlook: The European market has shrugged off Brexit and euro concerns to reward shareholders yet again. Not to be underrated.
Emerging Asia and China
Emerging Asian markets have underperformed this year, with the MSCI AC Asia Pacific (excluding Japan) up a modest 5.7 per cent, but Mr Paolini says the region remains attractive.
“It is forecast to grow at twice the rate of the rest of the world over the next five years, with a lower inflation rate,” he says.
Asia's relatively conservative monetary and fiscal response to the Covid-19 crisis means that economies in the region have more policy headroom, he adds.
Many investors are underexposed to Asia, despite its improving growth prospects, low inflation, commitment to reform and an increasingly diversified economy.
Investors can ill afford to ignore this part of the world, Mr Paolini says.
“We expect emerging Asian equities to be the best-performing asset class over the next five years, with returns averaging around 11 per cent a year. Vietnam and India should do particularly well,” he estimates.
Outlook: Asia still looks like a strong long-term bet. Make sure you have some exposure in your portfolio.
Gold
Gold has lost its shine in 2021. It started the year trading at $1,930, below its all-time high of $2,084, hit last August. Today, it stands at $1,805, a drop of 6.5 per cent.
The global economic recovery hit demand for the safe haven, Laith Khalaf, financial analyst at AJ Bell, says.
“Inflation fears haven’t helped, as higher interest rates will increase savings rates and bond yields, while gold does not pay any interest,” Mr Bell says.
This might offer a buying opportunity as gold now looks “massively undervalued”, according to Fawad Razaqzada, a market analyst with ThinkMarkets. “Also, the precious metal historically does well during the third quarter.”
Outlook: Gold may regain some of its lost lustre, but investors may need to be patient.
Bitcoin and cryptocurrencies
It’s been another crazy year for cryptocurrencies. Bitcoin started 2021 trading at $29,388, more than doubled to $63,588 in mid-April then crashed by half. At the time of writing, it is hovering around $33,000, squeezed by a Chinese clampdown and the unpredictability of Elon Musk’s Twitter output.
Bitcoin also harbours two dirty secrets. Mining the alt-coin now uses a similar amount of electrical power to Argentina or the Netherlands, worsening climate change, while criminals use it to hide their ill-gotten gains or hold companies to ransom.
Crypto is at a crossroads, Mr Razaqzada says. “The longer we go without the price hitting $40,000, the more likely support will crumble and give way to a sharp move towards $20,000.”
The longer we go without the price hitting $40,000, the more likely support will crumble and give way to a sharp move towards $20,000
Fawad Razaqzada,
a market analyst with ThinkMarkets
Outlook: Nobody knows where Bitcoin and its alt-coin buddies will go next. Only invest if you have money to lose.
Bonds
Bond yields were supposed to soar this year as investors demanded a higher rate of return to offset the threat from rising inflation.
Yet at the time of writing, 10-year US Treasury bonds yield just 1.34 per cent. In the UK, 10-year gilts offer just 0.7 per cent.
Bonds offer portfolio diversification, but it’s hard to be positive given today’s low yields and a global economy that looks like it’s beginning to take off, Mr Khalaf says.
“Inflationary fears have not yet really taken root, keeping yields down,” he adds.
China’s government bonds offer the best return/risk profile, while emerging Asia’s investment grade corporate bonds also look attractive, Mr Paolini says.
Outlook: Inflation remains a concern, but the great bond market sell-off has been averted for yet another year.
The specs
Engine: 2.0-litre 4-cyl
Power: 153hp at 6,000rpm
Torque: 200Nm at 4,000rpm
Transmission: 6-speed auto
Price: Dh99,000
On sale: now
MORE ON TURKEY'S SYRIA OFFENCE
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.4-litre%204-cylinder%20turbo%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20366hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E550Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESix-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh360%2C000%0D%3Cbr%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%0D%3C%2Fp%3E%0A
States of Passion by Nihad Sirees,
Pushkin Press
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Cinco in numbers
Dh3.7 million
The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
46
The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
3,000
The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
1.1 million
The number of followers that Michael Cinco’s Instagram account has garnered.
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
Nancy 9 (Hassa Beek)
Nancy Ajram
(In2Musica)
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
HOW TO WATCH
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The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
Match info
Manchester United 4
(Pogba 5', 33', Rashford 45', Lukaku 72')
Bournemouth 1
(Ake 45 2')
Red card: Eric Bailly (Manchester United)
How The Debt Panel's advice helped readers in 2019
December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
Buy farm-fresh food
The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.
In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others.
In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food.
In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra.
COMPANY%20PROFILE
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