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UAE financial advice market could reach AED875 billion – News

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Influx of super-rich boosts assets under management in UAE


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According to a study by Boston Consulting Group, the UAE’s financial wealth will expand strongly in the coming years, from $700 billion in 2021 to $1 trillion in 2026. — KT file

published: Tuesday, July 4, 2023 at 4:42 pm

The UAE’s financial advice market is expected to exceed AED875 billion by 2023, driven by a significant increase in the influx of ultra-high-net-worth individuals (UHNWIs) into the UAE.

Bas Kooijman, CEO and asset manager of financial services securitization firm DHF Capital, said the UAE is home to more than 200 nationalities and typically sees an annual inflow of 1,000 high-net-worth individuals (HNWIs). In 2022, the UAE is one of the world’s most popular destinations for wealthy individuals, welcoming more than 5,200 HNWIs, an increase of 18%.

“This strong growth will continue in 2023, with industry analysts expecting 4,500 millionaires to emigrate and live permanently in the UAE. The UAE has set the stage for this evolution for more than 50 years, but Covid-19 seems to be accelerated that progress,” Kooijman said.

He said the deft handling of the pandemic demonstrated the country’s ability to promote safety and security while also protecting the best interests of residents and the country’s economy. “These efforts have garnered global attention, attracting wealthy investors from around the world. In turn, substantial wealth has poured into the country in recent years.”

According to the latest list compiled by residency and citizenship planning firm Henley and Partners, which ranks the wealth of each hub as measured by resident millionaires, Dubai is in the top 20 with 64,800 millionaires living in the city, while New York The city continued to retain its crown. As the richest city in the world.

According to the data, assets under management (AUM) in the UAE wealth management market is expected to reach AED 938 billion by 2023, with a compound annual growth rate of 10%, and the market size will reach nearly AED 1.4 trillion between now and 2027 m. Kooiman said.

According to a study by Boston Consulting Group, the UAE’s financial wealth will expand strongly in the coming years, from $700 billion in 2021 to $1 trillion in 2026.

According to data provided by Statista, assets under management in the UAE wealth management market are expected to reach US$239.4 billion this year, with financial advisory dominating the market, which is expected to reach US$223.5 billion in 2023. Assets under management are expected to show a trend growth rate year by year (2023-2027 compound annual growth rate) of 10.59%, and the market size will reach 358.1 billion US dollars by 2027.

According to the GlobalData Country Risk Index, the UAE is a low-risk country, ranking 10th out of 153 countries in the world. Careful management of the pandemic, as well as proven stability during turbulent times like the financial crisis of the early 2000s, are among the factors behind this status.

Investment professionals and asset managers see the UAE as an ideal midpoint between West and East, with private banks and wealth managers in Europe and Asia building or expanding operations. They believe that more global wealth will flow into the UAE from around the world as the second largest economy in the Arab world continues to develop and develop its economy, regulations and wider wealth management offerings.

Economic growth in the region, growth in local private wealth, and the continued rapid inflow of high-net-worth and ultra-high-net-worth households and wealth from around the globe have fueled market expansion, and even today there is still plenty of room to accommodate Growing numbers and wealth. Competitors in the wealth management space are diverse, experts say.

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