Wealth Management - United Arab Emirates

United Arab Emirates

Assets under Management in the Wealth Management market are projected to reach €171.30bn in 2024.
Financial Advisory dominates the market with a projected market volume of €167.30bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.64%, resulting in a market volume of €195.10bn by 2029.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

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Analyst Opinion

The Wealth Management market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: Customers in the United Arab Emirates have shown a strong preference for wealth management services due to several reasons. Firstly, the country has a high concentration of high-net-worth individuals who are seeking professional advice to manage their wealth. These individuals are looking for tailored solutions that can help them preserve and grow their assets. Additionally, the younger generation in the country is becoming more financially savvy and is increasingly interested in investing their wealth. This has created a demand for wealth management services that cater to the needs of this demographic.

Trends in the market: One of the key trends in the wealth management market in the United Arab Emirates is the growing popularity of Sharia-compliant investment products. Islamic finance is an important aspect of the country's financial system, and many individuals prefer to invest in products that adhere to Islamic principles. As a result, wealth management firms are offering a wide range of Sharia-compliant investment options to cater to this demand. Another trend in the market is the increasing use of technology in wealth management services. Fintech companies are disrupting the traditional wealth management industry by offering innovative digital solutions. This includes robo-advisors that use algorithms to provide investment advice and online platforms that allow individuals to manage their investments. Wealth management firms in the United Arab Emirates are embracing these technological advancements to better serve their clients and enhance the overall customer experience.

Local special circumstances: The United Arab Emirates is known for its favorable business environment, which has attracted a large number of expatriates to the country. These expatriates often have complex financial situations and require specialized wealth management services. Wealth management firms in the country have developed expertise in managing the finances of expatriates, including tax planning and cross-border investments. This has further fueled the growth of the wealth management market in the United Arab Emirates.

Underlying macroeconomic factors: The growth of the wealth management market in the United Arab Emirates can be attributed to several macroeconomic factors. Firstly, the country has a stable and well-regulated financial system, which instills confidence in investors. This has attracted both domestic and international investors to the country, leading to an increase in wealth management activities. Additionally, the United Arab Emirates has a strong economy with a high GDP per capita, which has contributed to the growth of wealth in the country. As individuals accumulate more wealth, they are seeking professional advice to manage their assets effectively. In conclusion, the wealth management market in the United Arab Emirates is experiencing significant growth due to customer preferences for tailored solutions, the popularity of Sharia-compliant investment products, the increasing use of technology, the need for specialized services for expatriates, and the underlying macroeconomic factors such as a stable financial system and a strong economy.

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).