Personal wealth in the UAE is forecast to rise by 8% per annum over the next five years – despite not having yet developed the wealth management market to capitalise on the growing wealth, according to a report from Boston Consulting Group (BCG).
The forecast follows a 5% annual rise in personal wealth over five years (2013 to 2018) in the UAE, which bucked the global trend where personal wealth declined by 5% in the last year alone, according to BCG’s Global Wealth 2019: Reigniting Radical Growth report.
But while the statistics for personal wealth in the UAE and the Mena region as a whole rank positively in comparison to the rest of the world, the same cannot be said for the region’s wealth and asset management industry.
“While international wealth managers are making strides towards innovating in a rapidly shifting environment, Middle East wealth managers have not fully embarked on that trend,” said Markus Massi, managing director & senior partner at BCG Middle East.
“Several, even large players are still offering standard products and services, lacking the breadth and depth of international wealth managers. Local wealth managers have to tailor their offering more to either local needs and/or a younger wealth segments. Offering a ‘me too’ will not be sufficient to benefit from the growing wealth,” added Massi.
The report further states that investable wealth will grow in the UAE by 6% per annum by 2023 and furthermore, the allocation of these assets will see an increase in the pensions and life sector of 18% – the fastest growth among the various investment options.
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