‘Thinking long term, you can make your money grow quite substantially if you stay in the market. The role of the market is to continue growing.’ - Zainab Kufaishi, Independent Consultant.
Introduction: Zainab Kufaishi, Independent Consultant
Up until 2023, she led the Middle East and Africa regions at Invesco Asset Management, an organization managing over $1.5 trillion USD. Recognized by Forbes as one of the Middle East’s power businesswomen, she is a staunch advocate for diversity and inclusion, serving on the boards of various female empowerment institutions. Zainab has since transitioned to consultancy, lending her expertise as a subject matter expert. Currently, she serves as an independent consultant and also an advocate for startups and SMEs. Born in Iraq and raised in the UK, Zainab now calls Dubai home, where she continues to inspire the next generation of female leaders through mentorship.
We had the pleasure of speaking with Zainab on the second episode of Vault Presents: Masters of Wealth. Here’s the rundown.
Create wealth by staying in the market
Zainab explains that the market is designed to grow over time, and remaining invested is crucial to benefiting from this growth. Despite short-term volatility and emotional reactions to market fluctuations, long-term investing in a diversified portfolio typically leads to substantial financial growth. Zainab highlights that inflation can erode the value of cash, making it imperative to invest rather than hold onto cash. By investing, individuals can protect their wealth from inflation and capitalize on the overall growth of the economy.
Problems in the region
Local stock markets are less developed, less liquid, and more volatile compared to more mature markets. Zainab believes that this creates a perception that investing in the local markets is riskier. Furthermore, many people in the UAE prefer to invest in real estate due to its tangibility and familiarity. There is also a tendency to reinvest in family businesses rather than diversifying investments, leading to a lack of diversification in investment portfolios. Financial literacy and role models for investing are also limited, contributing to an underinvestment in diversified assets.
The motherhood penalty
Zainab acknowledges the challenges and guilt associated with being a working mother but emphasizes the importance of being a role model for her children. She believes that showing her children that she has her own dreams and ambitions is crucial. She discusses the concept of the “motherhood penalty,” where women are often perceived as less committed to their careers after becoming mothers, leading to slower career progression and lower earnings. She advocates for more supportive policies, such as shared parental leave, to help level the playing field for working parents.
Financial literacy for women
Women are often more risk-averse and less comfortable making investment decisions compared to men. This disparity can be traced back to societal conditioning from a young age, where boys are encouraged to take risks while girls are often protected from them. Zainab believes that financial literacy is also influenced by cultural norms, with discussions about money often dominated by men. This lack of early financial education and exposure contributes to women’s lower confidence and participation in investing.
Closing statement
‘Feel the fear and do it anyway. Think about the upside more than the downside. I believe in having optimism when it comes to life and work, which has served me well.’ - Zainab Kufaishi, Independent Consultant
As a leader and mentor, Zainab continues to inspire and empower the next generation of female leaders, driving positive change in the industry.
We hope you found value in this summary of our conversation with Zainab Kufaishi on the second episode of Masters of Wealth. You can watch the full episode on Vault’s YouTube channel, here.
Disclaimer:
The discussions on this podcast are based on personal views, experiences, and perspectives of the presenters for informational purposes only. The material should not be construed as a solicitation or advice, or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Vault Wealth Limited is not liable for any errors, omissions, or actions taken based on the content of this podcast.
Frequently asked questions
What is Zainab Kufaishi's number-one wealth-creation advice?
"Thinking long term, you can make your money grow quite substantially if you stay in the market. The role of the market is to continue growing." Her premise: equity markets compound steadily over multi-decade periods, and the principal threat to wealth isn't volatility — it's the temptation to exit during volatility.Why does she emphasise staying invested over timing?
Because market timing is statistically a loser's game over long horizons, but the emotional pull to exit during drawdowns is brutally strong. The data is consistent: investors who stay in the market through full cycles materially outperform those who try to step out and re-enter. The discipline to do nothing during volatility is the highest-paid skill in investing.What does she say about cash?
She's direct: cash erodes to inflation and holding large cash balances over time is a losing strategy. Inflation can quietly cost you 30-50% of purchasing power over 20 years even at modest annual rates — far more than any equity market drawdown an investor would otherwise have suffered.What's the "regional problem" Zainab identifies?
Many MENA investors — particularly first-generation wealth creators — under-allocate to globally diversified equities and concentrate too heavily in local real estate, family-business reinvestment, or single-country exposure. The result is an over-concentrated portfolio that doesn't capture global compounding and carries idiosyncratic risk that proper diversification would eliminate.Where can I hear the full Vault Presents: Masters of Wealth conversation with Zainab?
Vault Presents: Masters of Wealth is the firm's podcast series featuring extended conversations with UAE-based wealth creators. The Zainab Kufaishi episode is the second in the series and covers her career at Invesco, her views on the MENA wealth management industry, and her perspective on long-term investing as the foundation of generational wealth.
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