"Representing 4.1% of the region's financial wealth in 2022, Qatar's trajectory signifies strong economic growth and resilience in the face of global challenges," said Markus Massi, managing director and senior partner at BCG.
The country's thriving entrepreneurial spirit, coupled with calculated risk-taking, has contributed to this remarkable growth, demonstrating its leadership in the region, he said.
Highlighting that UHNW individuals are the major contributors to Qatar's wealth growth; BCG said in 2022, approximately 38% of Qatar's wealth came from UHNW individuals, worth more than $100mn.
This contribution is expected to increase to 40% by 2027. Additionally, individuals with wealth between $1mn and $20mn held 16% of Qatar's wealth in 2022, with this figure remaining the same in 2027. Meanwhile, individuals' worth under $250,000 held 28% of the wealth in 2022, expected to decrease to 27% by 2027.
"The success of Qatar in attracting and retaining high net worth individuals has been instrumental in driving its economic growth. These individuals not only drive innovation and investment in the region but also contribute to the continued prosperity of Qatar," said Nimrod Pais, managing director and partner, BCG.
Equities and investment funds are the largest asset class in Qatar, making up 48% of total personal wealth in 2022, it said, adding life insurance and pensions are expected to have the fastest growth rate of 7.1% compound annual growth rate between 2022 and 2027.
Highlighting the growth of real assets and liabilities in Qatar; it said real assets in Qatar decreased by 0.8% per year from 2017 to 2022, reaching $266bn, and are projected to increase by 5.1% per year to $341bn by 2027.
In comparison, liabilities in Qatar grew by 1.3% per year during the same period and are expected to grow by 2.6% per year to $38bn by 2027. "This balanced growth reflects a nation that takes calculated risks, contributing to overall economic growth," it said.