Market Insights Financial Wealth Management

Financial Advisory - United Arab Emirates

United Arab Emirates

Assets under Management in the Financial Advisory market are projected to reach €167.30bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.62%, resulting in a market volume of €190.40bn by 2029.

Key regions: United States, Singapore, Europe, Switzerland, Canada

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Analyst Opinion

The Financial Advisory market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in the United Arab Emirates are increasingly seeking financial advisory services to help them navigate the complex and ever-changing financial landscape. They are looking for professionals who can provide personalized advice and guidance on a wide range of financial matters, including investment strategies, retirement planning, and wealth management. Customers value advisors who have a deep understanding of the local market and can offer tailored solutions to meet their specific needs. They also appreciate advisors who can leverage technology to provide convenient and efficient services.

Trends in the market: One of the key trends in the Financial Advisory market in United Arab Emirates is the growing demand for Sharia-compliant financial advisory services. As a predominantly Muslim country, there is a strong preference for financial products and services that adhere to Islamic principles. This has created opportunities for financial advisors who specialize in Sharia-compliant investments and can help clients navigate the complexities of this market. Another trend in the market is the increasing use of technology in the delivery of financial advisory services. With the rise of digital platforms and robo-advisors, customers now have access to a wide range of investment options and financial planning tools at their fingertips. This has made financial advisory services more accessible and affordable, particularly for younger customers who are comfortable using technology.

Local special circumstances: The United Arab Emirates has a thriving financial services industry, with a large number of local and international banks, asset management firms, and insurance companies operating in the country. This creates a highly competitive market for financial advisory services, with advisors vying for customers' attention and business. To succeed in this market, financial advisors need to differentiate themselves by offering unique value propositions, such as specialized expertise, personalized service, or access to exclusive investment opportunities.

Underlying macroeconomic factors: The Financial Advisory market in United Arab Emirates is being driven by several underlying macroeconomic factors. The country has a strong and stable economy, with high levels of disposable income and a growing middle class. This has created a demand for sophisticated financial products and services, as individuals and families seek to grow and protect their wealth. Additionally, the government of United Arab Emirates has been actively promoting the development of the financial services industry as part of its efforts to diversify the economy and reduce reliance on oil revenues. This has led to the establishment of financial free zones and the introduction of regulations to attract foreign investment and foster innovation in the sector. These initiatives have created a favorable business environment for financial advisory firms, encouraging them to expand their operations in the country. In conclusion, the Financial Advisory market in United Arab Emirates is experiencing significant growth and development, driven by customer preferences for personalized and technology-enabled services, as well as local special circumstances such as the demand for Sharia-compliant financial advisory services and the competitive landscape. The underlying macroeconomic factors, including a strong and stable economy and government support for the financial services industry, are also contributing to the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).