UAE sets the pace in regional private wealth

The UAE will lead the growth in regional private wealth over the next five years, according to a report from The Boston Consulting Group (BCG). Private wealth in the UAE is projected to grow at a compound annual growth rate of 10.7% to $1 trillion, followed by Kuwait at 6.7% and Saudi Arabia at 5.3%. The UAE’s growth of private wealth has mainly been driven by equities. According to the report between 2013/14, the amount of wealth held in equities rose 13.8% compared with 6% in bonds and 6.9% for cash and deposits. Those figures are set to change by 2019, with the wealth breakdown anticipated to be 47% in equities, 43% growth in cash and deposits and 9% in bonds. BCG said the increasing wealth of high net worth households in the country, which will be created mainly because of strong economic growth, a surge in asset prices and equity values will be a boon to the country and the region as the money will mainly be reinvested locally. “The UAE and Gulf investors like to be able to see their money,” said Markus Massi, managing director at BCG Middle East.