UAE private wealth to hit $590bn by 2022

Private wealth in the UAE is forecast to grow $590bn by 2022 according to a report from Boston Consulting Group that shows worldwide personal wealth reached nearly $202trn last year.

The Boston Consulting Group (BCG) said personal wealth in the UAE is projected to continue to grow at a 8% rate and expected to reach $590bn in investable assets by 2022.

The study revealed 12 billionaires hold almost a fifth (18%) of the country’s wealth, while in the next bracket, 139 individuals with wealth between $100m and $1bn, hold 8% of the country’s wealth.

In regards to asset allocation, currency and deposits, at 46%, were the highest proportion of assets in the UAE in 2017, followed by offshore assets at 30%, life insurance and pensions at 15% and equities and investment funds at 9%.

BCG noted that as the regulatory climate has tightened over the last decade, there have been significant flows back onshore. In the UAE, this is signified by the expected decrease in offshore assets of 6% between 2017 and 2022.

According to BCG, the UAE is among the world’s top 10 countries, which hold the highest offshore wealth with regional Arab countries emerging as the top source for this wealth.

Saudi Arabia retains the largest share of wealth of all the Middle Eastern countries, although its share has reduced from 25.3% in 2012 to 22% in 2017, and is projected to fall further to 17% by 2022. (continues…)

Global personal financial wealth grew by 12% last year to $201.9trn. The US controls the highest personal wealth in the world at $80.5 trillion followed by China, Japan, UK, Germany, France, Canada, Italy, Australia and South Korea.

The strongest region of growth was Asia, which posted a 19% increase.

The UAE holds $500bn offshore wealth, becoming the 6th largest offshore centre in the world with Saudi Arabia, Iraq and Iran emerging as the top three sources of the offshore wealth.

Currently, Switzerland tops, controlling $2.3trn offshore wealth followed by Hong Kong ($1.1trn), Singapore ($900bn), the US ($700bn) and Channel Islands and Isle of Man ($500bn).