Private investors in the United Arab Emirates plan to increase their holdings in alternative investments such as private equity, hedge funds and derivatives in the next three years, according to a new global report published by Barclays Wealth.

However, fewer than half of UAE investors polled expressed confidence in their knowledge of personal finance, hedge funds and private equity.

The report, 'Barclays Wealth Insights: Risk, Return and Reward', reveals that investors with at least $100,000 in investable assets plan to put more money into alternative investments over the next three years, as they seek more absolute returns.

The report reveals a trend amongst these investors of an increasing appetite for financial products which help reduce volatility, such as derivatives, private equity and hedge funds, particularly in the Middle East and Asia. At the same time, there is a move away from equities, which suggests investors have more of an appetite for returns that are stable rather than driven by market movements.