World Economy

UAE Private Wealth to Reach $1t

UAE Private Wealth to Reach $1tUAE Private Wealth to Reach $1t

Private wealth in the UAE is projected to post a compound annual growth rate of 10.7% to reach an estimated $1 trillion in 2019, a study said.

Private wealth in the United Arab Emirates showed solid growth in 2014 (8.4%), according to the new report by global management consulting firm Boston Consulting Group, Global Wealth 2015: Winning the Growth Game, released Wednesday, TradeArabia reported.

In the UAE, the growth of private wealth was driven mainly by equities. Between 2013 and 2014, the amount of wealth held in equities rose by 13.8% across the nation, compared with 1.6% for bonds, and 6.9% for cash and deposits.

Based on the study, the UAE is poised for further growth in the next five years, with the wealth breakdown anticipated to be 43% in cash and deposits, 9% in bonds, and 47% in equities.

The Global Wealth 2015 report, BCG’s fifteenth annual study of the global wealth-management industry, addresses the current and future size of the market–notably the projection that the Asia-Pacific region (excluding Japan) will surpass North America as the wealthiest region in the world in 2016–and explores the keys to profitability on the basis of extensive benchmarking of global players.

The report also examines the choices that institutions face regarding where to invest in their own businesses in order to achieve profitable growth and overall future excellence.

Overall, the analysis found that wealth managers must raise their games on numerous fronts and decide where to invest in their own businesses if they hope to ensure profitability through 2020.