United Arab Emirates (UAE) Wealth Management – Market Sizing and Opportunities to 2025

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

The resident retail savings and investments market in the UAE was $177.60 billion in 2020. The market is expected to grow at a CAGR of more than 4% during the forecast period 2021-2025. The UAE’s affluent segment (including HNWs and mass affluents) accounted for a mere 6.8% of the total population and held 81.5% of the UAE’s total onshore liquid assets in 2020. The affluent segment holds the majority of their wealth in safe-haven assets such as deposits followed by risky assets such as equities and mutual funds. Therefore, as the outbreak of the COVID-19 pandemic caused big downward shifts in the stock market performance of the country, thereby adversely affecting the returns of the affluent investors on this asset class, such losses were recovered in the second half of 2020 which saw an easing of lockdown restrictions and restarting of the economy. Nevertheless, a strong predicted retail investments growth is expected over the upcoming period, owing to an effective vaccine program that will raise investor confidence in the economic performance of the country. Further, the country’s savings and investments market is observing a growing preference for robo-advisory by HNW investors. This demand has also been accelerated by the outbreak of the pandemic that has been a catalyst in increasing the use of digital products and services.

UAE wealth management market overview

UAE wealth management market overview

For more insights on this report, download the free sample report

What are the market dynamics in the wealth management market in the UAE?

The majority of mass affluent investors in the UAE have equity, bond, and mutual fund holdings

Retail investors have less wealth at their disposal therefore, they aim to preserve invested capital while also not compromising on returns This explains their strong focus on property, which accounts for 92% of asset allocation among retail investors.

Emirati investors focus on both direct equity investments and funds in the equity space, while REITs are gaining popularity in the property space

Despite COVID-19 resulting in a decline in stock market performance, UAE HNW investors are still willing to take risks by investing a sizable chunk of their wealth in equities. A market crash allows HNW investors to take advantage of cheap stocks with the expectation that the only way is up.

Advisors at investors’ main bank and pension companies are the most popular channels for arranging investments among mass affluent and retail investors

Mass affluent investors are most likely to reach out to pension companies and advisors at their main bank to arrange investments. Most UAE investors agree that the relationship they already have with their advisors is the reason they consult them for investments.

Advisory and discretionary mandates have an edge over other options

Advisory mandates are the most popular option among UAE HNW investors, making them a necessary offering for any wealth manager operating in the country. While investors want to offload the time-intensive aspects of managing an investment portfolio, many do not want to relinquish control completely.

Better returns and originally hailing from a country are key drivers for investors to offshore their wealth

Offshore investments are relatively scarce among retail investors, with only 11.7% shipping any of their wealth abroad. The expectation of better returns and the fact that they are originally from that country are key factors encouraging them to do so.

In 2020, HNW investors parked half of their total liquid assets offshore a proportion that is set to increase over the next 12 months

Considering that the UAE itself is a hub for ex-pats, these investors are more likely to hold assets and receive income in different jurisdictions, explaining the significant proportion of wealth held offshore. This poses challenges as investors are forced to navigate multiple tax systems and filing deadlines Providing cross-border tax advice is thus a necessity in the country.

What are the segment classifications in the resident savings and investments market in the UAE by asset allocations?

By asset allocations, various segments in the resident savings and investments market in the UAE include equities, mutual funds, deposits, and bonds. 

Equities

The Coronavirus Crash hindered retail equity holdings in 2020, but a rebound is expected in 2021. Despite the pandemic, banks maintained the largest stock market weighting on the back of central bank support measures.

Mutual funds

Despite the stock market being strongly impacted by the pandemic, mutual funds are expected to have closed 2020 flat on the previous year. Mutual fund balances have declined consistently since 2015, with the highest fall in this period being recorded in 2016. This decline continued until 2019 on the back of stringent regulations imposed on the marketing and distribution of funds.

Deposits

COVID-19 uncertainty caused investors to save more, resulting in growth in retail deposit holdings in 2020. Deposits remain the preferred investment type among UAE retail investors, in 2019. This reflects investors’ longstanding investment preference for low-risk asset classes.

Bonds

Despite the government taking measures to increase bond uptake, growth will remain low going forward. Like most countries worldwide, bonds account for the smallest share of holdings in the average UAE retail portfolio investments in 2019. After consistently declining over the past decade, the market rebounded in 2019.

UAE resident savings and investments market, by segments

UAE resident savings and investments market, by segments

For more segment insights, download the free sample report

Market report scope

Market size (Year – 2020) $177.60 billion
Growth Rate CAGR of >4% during the period 2021-2025
Base year 2020
Forecast Period 2021-2025
Segmentation by resident savings and investments market (Asset allocation) Equities, mutual funds, deposits, and bonds

 Scope

  • HNW individuals constituted only 0.22% of the total adult population of the UAE in 2020.
  • Advisory mandates accounted for 27.5% of the total HNW portfolio composition in the UAE in 2020.
  • Deposits remain the most popular investment avenue for the Emirati retail investors indicating their preference for safe-haven investment asset classes.
  • Bonds continued to form a small proportion (0.003%) of retail investment portfolios in 2020.

Reasons to Buy

  • Make strategic decisions using top-level historic and forecast data on the UAE’s wealth industry.
  • Identify the most promising client segment by analyzing the penetration of affluent individuals.
  • Receive detailed insights into retail liquid asset holdings in the UAE.
  • Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the wealth space.
  • See an overview of key digital disruptors in the country’s wealth market.

Central Bank of the UAE
StashAway
Sarwa

Table of Contents

Table of Contents

UAE Wealth Market

Investor Insight

Resident Savings and Investments

Digital Disruptors

Recent Deals

Appendix

Frequently asked questions

United Arab Emirates (UAE) Wealth Management – Market Sizing and Opportunities to 2025 thematic reports
Currency USD
$2,750

Can be used by individual purchaser only

$8,250

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

United Arab Emirates (UAE) Wealth Management – Market Sizing and Opportunities to 2025 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at United Arab Emirates (UAE) Wealth Management – Market Sizing and Opportunities to 2025 in real time.

  • Access a live United Arab Emirates (UAE) Wealth Management – Market Sizing and Opportunities to 2025 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.