MUSCAT: Oman’s financial wealth is projected to experience a strong Compound Annual Growth Rate (CAGR) of 4.7%, increasing to $141 billion by 2027, according to a new report by Boston Consulting Group (BCG).

The report titled ‘Global Wealth Report 2023: Resetting the Course,’ reveals that Oman’s financial wealth represents 1.5% of the region’s total.

Over the period from 2017 to 2022, Oman’s financial wealth experienced a growth rate of 7.2% per annum, reaching a total of $112 billion. This significant increase highlights the nation’s positive economic trajectory and solidifies its position within the regional financial landscape.

Markus Massi, Managing Director and Senior Partner at BCG said: “Oman’s economic trajectory signals entrepreneurial spirit coupled with calculated risk. This impressive growth reflects the resilience and strength of Oman’s economy despite global market challenges.”

Turning to individual wealth distribution, the report indicates that in 2022, a significant portion of Oman’s wealth, about 23%, originated from Ultra High Net Worth (UHNW) individuals worth more than $100 million. Their contribution is expected to increase to 24% by 2027.

Furthermore, individuals with wealth between $1 million and $20 million held 23% of Oman’s wealth in 2022, with this percentage expected to remain the same by 2027. Individuals with wealth below $250,000 held 34% of the wealth, a proportion anticipated to decrease to 33% by 2027.

Farouk al Hosni, BCG Principal, commented: “The success of Oman in retaining high net worth individuals contributes to its growing economic prowess. Not only are they accelerating investment in the region, but they also warrant its sustained growth.”

The report also highlights the growth of real assets in Oman. Oman’s real assets represent 0.9% of the region’s total.

However, there has been a decline in real assets from 2017 to 2022 at an annual rate of -3%, resulting in a total of $104 billion. Despite this decline, there is optimism for the future as real assets are expected to experience growth at a rate of 4% per annum, reaching $127 billion by 2027.

Additionally, Oman’s liabilities sector declined slightly by -0.2% per annum from 2017 to 2022, but it is anticipated to grow by 2.5% annually to $9.1 billion by 2027.

This balanced growth demonstrates Oman’s confidence in taking calculated risks, enhancing its overall growth narrative.

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