The UAE and Saudi Arabia collectively represented more than a quarter of the Middle East and Africa’s (MEA) financial wealth in 2022, according to a new report by strategic management firm Boston Consulting Group (BCG).
Buoyed by equities and investment funds, which made up the largest asset class at 58% of total personal wealth in 2022, the UAE represented 13.2% of the region’s financial wealth last year, growing at a rate of 6.5% per annum from 2017 to reach $1 trillion in 2022.
The Global Wealth Report 2023: Resetting the Course study also revealed approximately 25% of the UAE’s financial wealth originated from Ultra High Net Worth (UHNW) individuals, worth more than $100 million, while individuals with wealth between $1 million and $20 million held 32% of the country’s wealth in 2022.
Other key findings revealed that real assets in the UAE grew by 7.5% per year from 2017 to 2022, reaching $1.9 trillion, with a forecasted growth to increase by 6.9% per annum to reach $2.6 trillion by 2027.
Saudi Arabia, meanwhile, represented 14.5% of the MEA’s financial wealth in 2022, with approximately 21% originating from UHNW individuals. The report stated this trend would remain consistent until 2027.
Currency and deposits represented the largest asset class in the kingdom and made up nearly half of the total personal wealth in 2022 at 48%, while bonds are expected to show the fastest growth with 7.4% CAGR between 2022-2027.
The report also found that real assets in Saudi Arabia are expected to grow from $2.7 trillion in 2022 to $3.6 trillion in 2027, with a CAGR of 5.8%.
As Saudi Arabia targets its Vision 2030 milestones, experts at BCG state that diversification will be key in maintaining its growth trajectory in coming years.
(Reporting by Bindu Rai, editing by Daniel Luiz)