UAE's Soaring Wealth: A glance at the $1.3 trillion projection by 2027

Let's talk about the UAE's incredible economic growth! It's been a beacon of prosperity for a long time, and a recent report from the Boston Consulting Group gives us some exciting insights. They're projecting a compound annual growth rate of 5.5% in new wealth, which means by 2027, the UAE's wealth could soar from $1 trillion to a whopping $1.3 trillion. That's according to the 'Global Wealth Report 2023: Resetting the Course.'

Now, let's break it down a bit. In 2022, equities and investment funds were the stars of the show, making up 58% of total personal wealth.
But here's the interesting part: bonds are expected to see the fastest growth, with an impressive CAGR of 8.4% from 2022 to 2027.

Life insurance and pensions are set to become the third-largest asset class by 2027. According to BCG's Managing Director and Partner, Mohammad Khan, this significant growth is thanks to the UAE's strong appeal for high-net-worth individuals.

Now, let's talk about the big players—the ultra-high-net-worth individuals. These are the folks with assets over $100 million. In 2022, they made up about 25% of the UAE's financial wealth, and that trend is expected to continue till 2027. On the other hand, individuals with wealth ranging from $1 million to $20 million held 32% of the UAE's wealth in 2022, and that's projected to increase to 34% by 2027.

When it comes to real assets and liabilities, they've seen robust growth, expanding by 7.5% annually from 2017 to 2022, reaching a substantial $1.9 trillion. Projections indicate this growth will keep going, with assets hitting $2.6 trillion by 2027.

And let's not forget about wealth management. The report suggests eight key strategies for sustainable profitability in this sector. These include things like focusing on fixed-income products and using generative artificial intelligence in financial advisory services.

So, if you're considering making this global economic hub your next home, there are some exciting listings waiting for you to explore. And if you're curious about real estate prices in Dubai, our Data Hub has all the information you need. Happy exploring!