UAE’s financial prosperity expected to reach $1.3 trillion by 2027

The UAE's financial wealth is predicted to see a 5.5% compound annual growth, reaching $1.3 trillion by 2027, up from $1 trillion in 2022. Boston Consulting Group's recent report states that by 2027, individuals between $1-20 million will hold 34% of the nation's wealth, a 2% increase from 2022.

Notably, the UAE stands as a global magnet for the ultra-wealthy. In 2022, a quarter of the nation's financial wealth came from individuals valued at over $100 million. This influential group is expected to maintain its hold through 2027. Those with assets ranging from $1 million to $20 million held 32% of the nation's wealth in 2022.

The country witnessed a remarkable 18.1% yearly growth in the ultra-rich populace in 2022, the world's fastest. Knight Frank mentions This increase in "The Wealth Report" is attributed to the UAE's strategic reforms and initiatives, tallying the ultra-rich at 1,116. According to the Residential Real Estate 2023 report by Wealth-X & Realm, two-thirds of the global UHNW population resides in Dubai.

Lukasz Rey of BCG emphasized the UAE's capability to attract and sustain high-net-worth individuals, highlighting their essential role in regional economic growth and innovation.

In 2022, equities and investment funds formed the dominant asset class in the UAE, constituting 58% of onshore personal wealth. However, bonds are predicted to witness the quickest growth with an 8.4% CAGR from 2022 to 2027, according to the "Global Wealth Report 2023: Resetting the Course. By 2027, life insurance and pensions will rank third in asset class.

Mohammad Khan from BCG underscored the UAE's stature as a sought-after global hub for the affluent, accounting for 13.2% of the Middle East and Africa's financial wealth in 2022 and reaching the $1 trillion milestone with an annual growth of 6.5% since 2017.

The UAE's tangible assets have risen by 7.5% annually, hitting $1.9 trillion in 2022, and are projected to escalate by 6.9% yearly, reaching $2.6 trillion by 2027. Meanwhile, liabilities have grown 3.1% annually and are forecasted to grow 6.3% yearly, amounting to $.2 trillion by 2027. The report concludes that this balanced growth depicts the UAE's confident financial direction, indicative of strategic risk-taking for holistic development.