Abu Dhabi – Mubasher: The UAE private wealth grew 8% in 2016 and 2017, a rate that is expected to be kept in the next five years, increasing investable assets in the GCC country to AED 2.167 trillion ($590 billion) by 2022.
However, the UAE is still away behind a global average annual personal wealth growth of 12%, recording $202 trillion, according to a report released by the Boston Consulting Group (BCG).
The Emirati non-investible assets are forecast to achieve an 11% growth per annum in the coming five years, while investible wealth will be limited to a 7% growth in the same period.
In 2017, currency and deposits accounted for 46% of the UAE assets, whereas offshore assets, life insurance and pension, and equities and investment funds made up 30%, 15%, and 9%, respectively.
“This asset allocation is expected to experience slight growth by 2022, with currency and deposits, life insurance and pensions, and equities and investment funds projected to reach 48%, 17%, and 11%, respectively,” the report found.
Moreover, personal wealth in the Middle East recorded an 11% increase to $3.8 trillion during 2017.
“We expect leading firms to further separate themselves from the pack over the next few years, a gap that will be increasingly difficult for slow-moving players to close,” Markus Massi, managing director of BCG Middle East’s Financial Services practice, commented.
