United Arab Emirates Life & Health Investment Management
The combined wealth in the UAE is set to grow by 4.2% each year to $510bn by 2024, depending on the pace of the post-coronavirus recovery, states a new report from the global management consultancy, Boston Consulting Group.
According to the consultancy’s Global Wealth 2020: The Future of Wealth Management – A CEO Agenda study, the wealth of millionaires is expected to hit $510bn if there is a slow recovery in the economy, grow by 5.3% to $530bn if there is a quick rebound and increase by 3.2% to $480bn if there is lasting damage, reported AFP quoting the report.
The UAE represented 7.1% of the personal wealth pool in 2019 in the Middle East and Africa, having grown by 3.8% annually to $400bn between 2014 and 2019. $194bn or 48.5% of the UAE’s wealth was held by millionaires in 2019.
UAE wealth is about 20% of GCC wealth, which currently stands at $2tn and is expected to grow by $2.1tn to $2.4tn by 2024 depending on the economic recovery.
“Despite the current economic decline and precarious outlook globally for the coming years, estimates indicate the UAE will still record sustainable growth across several areas within the wealth segment,” said Mustafa Bosca, managing director and partner at BCG.
“What we see is that wealth creation will come back despite some short-term challenges in the next 12 to 18 months and $100bn to $400bn of personal wealth will be created in the GCC by 2024 depending on the post-Covid-19 rebound.”
Life insurance
Life insurance and pensions are set to grow at their fastest pace in the Emirates at 7.1% until 2024, a shift from earlier years when currency and deposits represented the country’s largest onshore asset class, accounting for 69.2% of total personal wealth in 2019, according to BCG.
Source: MEIR
