The UAE will see the size of personal fortunes held by residents, as well as the number of millionaires, rise in the next five years.
Private wealth in the country is forecast to grow to $0.8 trillion, while the total number of millionaire households, those who have more than $1 million in net investable assets, is set to grow by 4.8 per cent by 2021, according to a new report.
The projected private wealth will roughly amount to more than Dh300,000 per person in the UAE, which has an estimated 9.1 million residents as of 2015, although a huge chunk of the money is believed to be concentrated in the hands of the ultra-wealthy.
The 17th annual study by Boston Consulting Group (BCG), which provided the figures, showed that as of last year alone, residents witnessed their wealth jump significantly by 8.3 per cent, with the amount of money kept in equities growing by 9.3 per cent, cash and deposits at 8.4 per cent and bonds at 3.8 per cent. The number of millionaire households also increased by 5.9 per cent during the same period.
“The growth of private wealth was driven primarily by equities,” BCG said in a press statement.
The super-rich in the UAE alone, or the so-called ultra-high-net-worth households who have more than $100 million, saw their fortunes rise by 8.8 per cent in 2016. Over the next few years until 2021, this specific segment will acquire more millions, with their wealth expected to increase by 9.4 per cent.
The upper high-net-worth (HNW) segment, those with between $20 million and $100 million, noticed their fortunes rise significantly in 2016, posting a growth of 11.2 per cent. In the next five years, however, wealth growth in this segment will slow down to 9.9 per cent.
Those who belong to the lower HNW segment, or residents who own between $1 million and $20 million in the bank and other assets, recorded a steady growth in wealth of 10.5 per cent in 2016. Over the next five years, residents in this segment will be about 8.8 per cent richer.
Over the next five years, fortunes in the Middle East and Africa region are predicted to hit $12 trillion, and a significant portion of that – about 21 per cent- will be generated in four key states, the UAE, Oman, Qatar and Saudi Arabia.
Full article: http://gulfnews.com/business/money/millionaire-households-in-uae-set-to-rise-by-4-8-1.2046518