HNWI Asset Allocation in the UAE 2013


#177976

74pages

WealthInsight

$ 1995

In Stock

Synopsis

  • This report is the result of WealthInsight’s extensive research covering the high net worth individual (HNWI) population and wealth management market in the UAE.
  • The report focuses on HNWI performance between the end of 2007 (the peak before the global financial crisis) and the end of 2012. This enables us to determine how well the country's HNWIs have performed through the crisis.

Summary

This report provides the latest asset allocations of the UAE HNWIs across 13 asset 
classes. The report also includes projections of the volume, wealth and asset allocations of the UAE HNWIs to 2017 and a comprehensive and robust background of the local economy.

Scope

  • Independent market sizing of the UAE HNWIs across five wealth bands
  • HNWI volume and wealth trends from 2008 to 2012
  • HNWI volume and wealth forecasts to 2017
  • HNWI and UHNWI asset allocations across 13 asset classes 
  • Insights into the drivers of HNWI wealth

Reasons To Buy

  • The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises dossiers on over 60,000 HNWIs from around the world.
  • The Intelligence Center also includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
  • With the Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
  • Report includes comprehensive forecasts to 2017.

Key Highlights

  • At the end of 2012, real estate was the largest asset class for HNWIs in the UAE, accounting for 23.2% of total HNWI assets. This was followed by cash with 20.7% equities with 20.4%, business interests with 20.0%, alternatives with 12.0% and fixed income products with 3.8%.
  • Cash products recorded the strongest growth over the review period, driven by a movement to safer assets during the financial crisis. 
  • Over the forecast period, equities are expected to be the top-performing asset class for HNWIs, followed by business interest and then real estate. Cash will be the worst performing asset class. As a result, there will be a movement away from cash and towards equities.
  • Collectables accounted for 1.2% of the total assets of local HNWIs at the end of 2012. This amounts to US$2.1 billion in HNWI assets. This includes US$360 million worth of fine art.
  • WealthInsight’s research showed that, at the end of 2012, 29% of UAE HNWIs had second homes abroad. The largest destination for these homes was London.
  • At the end of 2012, HNWI liquid assets amounted to US$49 billion, representing 26.9% of the wealth holdings of local HNWIs. 
  • Investment funds (held by asset managers and wealth managers) accounted for US$50 billion of HNWI assets in 2012, equating to 27.3% of HNWI wealth in 2012.