United Arab Emirates (UAE) Wealth Management – Market Sizing and Opportunities to 2028

United Arab Emirates (UAE) Wealth Management Report Overview

The United Arab Emirates’ affluent segment makes up 10.6% of the population and is the third largest by size in the region. The growth can be attributed to the initiatives under the government’s national vision programs aimed at transforming the country into a knowledge-based economy.

The UAE’s business-friendly environment has attracted significant foreign direct investment and an influx of affluent immigrants. Moreover, the country is set to remain the leading ‘wealth magnet’ globally for the third consecutive year. Therefore, wealth managers and wealth providers have a significant population size to tap into, primarily across the major cities of Dubai and Abu Dhabi.

The UAE wealth management market research report offers a detailed analysis of wealth and retail savings and investment instruments, including deposits, mutual funds, equities, and bonds. The report also provides exhaustive information on where High Net Worth (HNW) individuals distribute their investments. Furthermore, the report assists in understanding offshore investment drivers for the mass affluent, emerging affluent, mass market, and HNW individuals.

UAE Wealth Management Market - Investment Preferences

The key investment preferences in the UAE wealth management market are discretionary mandates, advisory mandates, execution-only mandates, and robo-advisors among others. In UAE, discretionary mandates were the most popular option among HNWs owing to their convenience and comprehensive strategy implementation. Discretionary mandates allow for a more seamless implementation of a holistic investment strategy tailored to meet long-term financial objectives without the need for constant client input.

UAE Wealth Management Market Analysis by Investment Preferences, 2023 (%)

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UAE Wealth Management Market - Investment Channels

A few of the key investment channels in the UAE wealth management market are investment platform at my main bank, advisor at my main bank, investment management company, pension company, robo-advisor, and others. In 2023, main bank’s investment platforms was most popular among Emirati investors. Individuals’ main banks can leverage all the available data on their customers’ entire financial picture to provide personalized solutions. This can be more appealing compared to the additional time and effort required to form a new wealth management relationship from scratch with a different provider.

UAE Wealth Management Market Analysis by Investment Channels, 2023 (%)

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UAE Wealth Management Market – Reasons for Holding Wealth Offshore

The key motivating factors to hold wealth offshore in the UAE wealth management market are local currency volatility, local political instability, tax efficiency, business interests, client anonymity, and others. In 2023, local currency volatility was the key driver for holding wealth offshore.

What is the most important driver for your offshore HNW clients to hold wealth in the UAE?

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UAE Wealth Management Market - HNW Asset Allocation Classes

The major asset allocation classes for HNW investors in the UAE wealth management market include savings accounts, equity, bonds, ETFs, mutual funds, and others. In 2023, savings accounts was popular among the UAE HNW investors because of their flexibility, convenience, and low-risk opportunities. This trend indicates that Emiratis value flexible asset allocation, as savings can easily be transferred to any other preferred assets.

UAE Wealth Management Market Analysis by HNW Asset Allocation Classes, 2023 (%)

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Segments Covered in the Report

UAE Wealth Management Market Asset Allocation Classes Outlook (%, 2023)

• Savings Account
• Equity
• Bonds
• ETFs
• Mutual Funds

UAE Wealth Management Market Investment Channel Outlook (%, 2023)

• Investment Platform at My Main Bank
• Advisor at My Main Bank
• Investment Management Company
• Pension Company
• Robo-Advisor

Scope

82.5% of the UAE’s liquid assets are held by affluent individuals, even though they make up just over 10% of the population. The largest wealth class, the mass market, only accounts for 6.1% of liquid assets, showing inequality typical of developing markets.

Deposits continue to play an important role in UAE portfolios, with retail deposits growing at their highest rate in 2023, up 16.7% to $188.4 billion, despite a slight slowdown observed in affluents’ overall liquid asset growth in 2023.

The equities market’s growth is forecast to cool down following its rally in 2021–22, which translated to an 80% increase in equity investment value and an outstanding $31 billion performance value added in 2021 alone.

Reasons to Buy

• Keep up to date with the UAE wealth management industry, looking at investors’ asset allocations by affluence bandings as well as unlocking a detailed picture of where HNW individuals distribute their investments.
• Develop an understanding of what investment channels consumers are using in the UAE.
• Understand the offshore investment drivers for the mass affluent, emerging affluent, and mass market as well as HNW individuals.
• Develop knowledge of resident savings and investments by looking at the performance and net inflows of bonds, mutual funds, equities, and deposits in the UAE.