Resident population in the UAE is predominantly comprised of expats. Reflecting this, expats also constitute a noteworthy 74.6% of the local HNW population - which has considerable implications when it comes to investors’ product and service demand. With strong demand for all planning services, being able to offer a holistic service proposition is a must in the UAE. Emirati HNW individuals have typically sourced their wealth predominantly through earned income, but family business owners represent a sizable target market as well.
Expats account for the majority of the UAE’s wealthy residents, making them a key target segment. Solutions such as offshore booking services and services catered specifically to non-resident Indians (one of the largest expat groups) must be part of every wealth manager’s service proposition. As UAE inheritance procedures are regulated by Sharia law, many investors need advice to pass down their wealth to their loved ones in line with Islamic rule. Advisors should partner with legal practices in order to offer both Sharia-compliant and secular legal services to different client groups.
Demand among Emirati HNW individuals is strongly geared towards advisory mandates. Given that demand is set to increase, wealth managers should lead with advisory mandates when promoting their services. The leading generator of wealth is the property and real estate sector, followed by oil, gas, and mining. Bonds are the preferred asset class, followed by property, as Emirati investors tend to have a pronounced risk-averse nature. Wealth managers in the UAE face a competitive but lucrative market, as most of Emirati HNW individuals’ investments are in advisory mandates.
The report “Wealth in the UAE: HNW Investors 2017” provides the UAE wealth market against the current market size and analyses about future growth prospects using our projections for the market to 2020. This report also identifies your most promising client segment by analyzing penetration of affluent individuals in the UAE. Moreover, it evaluates how the Emirati tax system will impact HNW clients.0 Companies mentioned in this report: Mondial Dubai, James Berry & Associates, Old Mutual Wealth, Skandia, Credence, HSBC.
Most Emirati HNW investors are male professionals under the age of 60, and they have primarily sourced their wealth through property and real estate.
Bonds and property are the preferred types of investment for Emirati investors, as many Sharia-compliant options are available for these asset classes.
Advisory mandates are the preferred type of asset management among UAE investors, as Emirati investors lack the knowledge and expertise to manage their finances on their own.
Financial and inheritance planning services are particularly in demand, but looking forward demand for all planning services will grow strongly.
Reasons to buy
Benchmark your share of the UAE wealth market against the current market size.
Forecast your future growth prospects using our projections for the market to 2020.
Identify your most promising client segment by analyzing penetration of affluent individuals in the UAE.
Evaluate your HNW proposition by understanding how the Emirati tax system will impact HNW clients.
Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.