Synopsis
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 2018 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 2009 to 2013
• HNWI volume and wealth forecasts to 2018
• HNWI and UHNWI asset allocations across 13 asset classes
• Insights into the drivers of HNWI wealth
Summary
• 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 2008 (the peak before the global financial crisis) and the end of 2013. This enables us to determine how well the country's HNWIs have performed through the crisis.
Reasons To Buy
• The HNWI Asset Allocation in the UAE 2014 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.
• With the wealth report 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 2018.
Key highlights
• Equities was the largest asset class for the UAE HNWIs in 2013, with 23.5% of total HNWI assets, followed by real estate with 22.8%, business interests with 20.0%, cash and deposits with 19.2%, alternatives with 11.0% and fixed income with 3.5%.
• Equities, business interests and real estate recorded the strongest growth during the review period, at 113.2%, 56.4% and 49.4% respectively.
• Alternative assets held decreased from 11.6% of total HNWI assets in 2009 to 11.0% in 2013.
• WealthInsight expects allocations in commodities to decline over the forecast period - reaching 1.7% of total HNWI assets by 2018 - as global liquidity tightens due to a forecast near-term drop in Chinese demand for raw materials. This will cause global commodity prices to level out.
• The UAE HNWI liquid assets amounted to US$117.7 billion in 2013, representing 46.2% of wealth holdings.
Table Of Contents
1 Introduction
1.1 Details of this Report
1.2 Definitions
2 Executive Summary
3 Wealth Sector Fundamentals
3.1 Political Background
3.2 Economic Background
3.3 Benchmarking the UAE’s Wealth in Context
3.3.1 Distribution of wealth in UAE
3.4 HNWI Volume and Wealth Trends
4 Analysis of UAE HNWI Investments
4.1 Analysis by Asset Class
4.1.1 Trends in alternative assets
4.1.2 Trends in ‘art, wine and wheels’
4.1.3 Trends of investments in real estate
4.1.4 Investments trends in cash and deposits
4.1.5 Investments trends in fixed income
4.1.6 Investment trends in equity
4.1.7 Investment trends in business interests
4.2 Analysis of Foreign Investments
4.2.1 Investments in Europe
4.2.2 Investments in North America (including the US, UAE and the Caribbean)
4.2.3 Investments in the Asia-Pacific
4.2.4 Investments in Central and South America
4.2.5 Investments in the Middle East
4.2.6 Investments in Africa
4.3 Alternative Breakdown: Liquid vs Investable Assets
4.4 Analysis of UAE UHNWI Investments
5 Appendix
5.1 Additional Components of the UAE Wealth Sector
5.1.1 Demand for intergenerational wealth transfer
5.2 Tax Regulations
5.3 Regulations Related to Immigration, Investment and Employment
5.4 Key Drivers
5.4.1 AED to US$ exchange rate
5.4.2 Real GDP growth
5.4.3 Per capita GDP
5.4.4 Domestic market capitalization
5.4.5 Commodity index
5.4.6 Foreign direct investments - inflow and outflow
5.4.7 Inflation
5.4.8 Interest rate
5.4.9 Balance of payments
5.4.10 Government debt
5.4.11 Stock market performance
5.5 Wealth Breakdown
6 About WealthInsight
List Of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: Cities in UAE, 2013
Table 3: UAE Allocations of HNWI Assets, 2009-2018
Table 4: UAE HNWIs ? Holdings Growth (%), 2009-2018
Table 5: UAE HNWIs - Alternative Asset Composition (%), 2009-2018
Table 6: UAE HNWIs - Trends of Investments in Alternative Assets (%), 2009-2018
Table 7: UAE Trends in ‘Art, Wine and Wheels’, 2009-2013
Table 8: Global Prime Real Estate Prices per m2 (US$), 2014
Table 9: UAE HNWIs - Foreign Investment Allocations (%), 2009-2018
Table 10: UAE HNWIs - Liquidity Breakdown (US$ Billion), 2009-2018
Table 11: UAE HNWIs - Liquidity Breakdown (%), 2009-2018
Table 12: UAE UHNWIs - Allocations and Share of HNWI Assets, 2013
Table 13: AED per US$ Exchange Rate, 2009-2018
Table 14: UAE Real GDP Growth (%), 2009-2018
Table 15: UAE GDP per Capita (US$), 2009-2018
Table 16: UAE Domestic Market Capitalization (US$ Billion), 2009-2013
Table 17: UAE Commodity Indices, 2009-2018
Table 18: UAE Foreign Direct Investments (US$ Billion), 2009-2018
Table 19: UAE Inflation Rate (%), 2009-2018
Table 20: UAE Interest Rate (%), 2009-2018
Table 21: UAE Balance of Payments (US$ Billion), 2009-2013
Table 22: UAE Government Debt as a Percentage of GDP (%), 2009-2018
Table 23: UAE Stock Market Performance, 2009-2013
Table 24: UAE HNWI Wealth vs GDP Ratio (%), 2009-2018
Table 25: UAE - Appendix One
Table 26: UAE - Appendix Two
List Of Figures
Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of the UAE
Figure 3: The UAE’s Asset Price Performance, 2009-2013
Figure 4: UAE HNWI Performance, 2009-2018
Figure 5: UAE vs Global HNWIs
Figure 6: UAE HNWIs - Asset Class Composition, 2009-2018
Figure 7: UAE HNWIs - Trends in Alternative Assets (US$ Billion), 2009-2018
Figure 8: UAE Trends in ‘Art, Wine and Wheels’, 2009-2013
Figure 9: UAE HNWIs - Foreign Investment Allocation and Growth (%), 2013
Figure 10: UAE HNWIs - Global Distribution of Foreign Investments, 2009-2018
Figure 11: UAE HNWIs - Liquidity Breakdown (%), 2009-2018
Figure 12: UAE UHNWIs - Asset Class Composition (%), 2009-2018
Figure 13: AED to US$ Exchange Rate, 2009-2018
Figure 14: UAE Real GDP Growth (%), 2009-2018
Figure 15: UAE GDP per Capita (US$), 2009-2018
Figure 16: UAE Domestic Market Capitalization (US$ Billion), 2009-2013
Figure 17: UAE Commodity Indices, 2009-2018
Figure 18: UAE Foreign Direct Investments (US$ Billion), 2009-2018
Figure 19: UAE Inflation Rate (%), 2009-2018
Figure 20: UAE Interest Rate (%), 2009-2018
Figure 21: UAE Balance of Payments (US$ Billion), 2009-2013
Figure 22: UAE Government Debt as a Percentage of GDP (%), 2009-2018
Figure 23: UAE Stock Market Performance, 2009-2013
Figure 24: UAE HNWI Wealth vs GDP Ratio (%), 2009-2018
Figure 25: UAE HNWIs - Volume by Wealth Band, 2009-2018
Figure 26: UAE HNWIs - Wealth by Wealth Band (US$ Billion), 2009-2018
Figure 27: UAE HNWIs - Wealth per Capita (US$ Million), 2009-2018
