The new annual global wealth management report issued by the Boston Consulting Group indicated that the compound annual growth rate of financial wealth in the UAE has witnessed an annual growth rate of 3% since 2015, reaching $600 billion in 2020, of which 69% is in the category of wealth available for investment. At a time when the UAE market has shown exceptional resilience in the face of the ongoing Covid-19 pandemic.
According to Arabiya Net, Mustafa Bouska, managing director and partner at Boston Consulting Group, said: Despite the challenges posed by the recent spread of the Covid-19 pandemic at the global level. Globally, it is estimated that the UAE has been able to record sustainable growth across many areas within the wealth sector.
The report indicates that the UAE accounted for 26% of the share of financial wealth in the Gulf Cooperation Council countries in 2020, while the compound annual growth rate of financial wealth is expected to witness It has a remarkable growth rate of 4% to reach $700 billion by 2025, an increase of $100 billion compared to 2020.
On the other hand, the report expected that the volume of financial wealth in the region by 2025 would reach $2.7 trillion, compared to $2.2 trillion in 2020.
Stocks and investment funds accounted for the highest percentage of the internally managed assets category in the country, as this category accounted for 47% of the total internal assets in 2020, while it is expected That the currencies and deposits category constitute the largest share of internal assets during the coming period, to reach 47% of the total domestic assets in the country by 2025.
The report expects that the reality of wealth in the UAE will witness remarkable changes in the coming years, with the rise of the next generation of high net worth individuals. According to the report, these high net worth individuals, aged between 20 and 50 years, have longer investment horizons, greater risk audacity, and a willingness to invest their wealth to make a positive societal impact and generate strong returns. However, the challenge in this context is the unwillingness of the largest number of wealth managers to provide their services to these new clients.
