UBS AG Group CEO Sergio P. Ermotti said on Monday during a panel discussion at the 4th Abu Dhabi Finance Week (ADFW) in Abu Dhabi, UAE, that two questions would be at the centre of his thinking for the coming year, 2026.
Ermotti: «The first question is: Is inflation under control? This is important because it remains a risk—the inflation rate is still quite sticky. The U.S. Federal Reserve will have to monitor developments very closely.»

A Question of Patience in AI

The second question is: Will we see more money flowing into artificial intelligence (AI)? The boundaries are blurred and not easy to assess from an economic standpoint. Is there a bubble in AI? Some investors will likely lose patience and ask themselves whether they should inject even more capital into AI projects. The good news is that more AI projects will reach market maturity and generate productivity gains and economies of scale.»

The UBS chief recommends that investors «diversify their portfolios and keep a healthy amount of cash on the side» in 2026.

Critical Words for the EU

On geopolitics, Ermotti said, «The situation in Europe remains fragile. I hope there will be no events that could escalate the situation, like those that triggered the First World War. There is no unified foreign policy among the 27 EU states. In the long term, I believe this must change.»