UAE’s financial wealth set to reach $1 trillion by 2026

UAE’s financial wealth set to reach $1 trillion by 2026

Staff Reporter, Gulf Today

The UAE financial wealth will experience a sturdy Compound Annual Growth Rate (CAGR) of 6.7% in new wealth, rising from $0.7 trillion to a high of $1 trillion from 2021 - 2026, according to a new report by Boston Consulting Group (BCG).

The report titled, Global Wealth 2022: Standing Still Is Not an Option, shows equities and investment funds in the UAE make up the largest asset class at 64% of total personal wealth in 2021 and are by 2026 expected to grow the fastest with a CAGR of 8.8%.

Whereas currency and deposits represent the second largest class at 29% of total personal wealth in 2021, bonds make up a mere 3%. It is expected life insurance and pensions will become the fourth largest asset class over the next five years.

“We see the Middle East and Africa financial wealth growing year after year, with the UAE in particular, excelling, despite a tremulous global market. In fact, the UAE represented 10.2 per cent of the Middle East and Africa’s financial wealth in 2021, having grown 6.4 per cent every year since 2016 to $0.7 trillion,” said Mustafa Bosca, Managing Director and Partner, BCG.

In 2021, approximately 41 per cent of