UAE’s financial advisory market volume is forecasted to exceed AED 875 billion in 2023

The UAE’s UHNWI population grew 18% in 2022, has an expected CAGR of 6% and Dubai is on pace to become one of the top 20 wealthiest cities in the world by 2030

After the UAE’s ultra-high-net-worth individuals (UHNWI) population increased by 18% in 2022, Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., cites that the country’s UHNWI demographic is projected to grow at a compound annual growth rate (CAGR) of approximately 6% through the next five to seven years; he sheds light on what is driving this growth and why the UAE’s financial advisory market is estimated to reach a market volume of almost AED 876 billion expected by the end of this calendar year.

Home to over 200 different nationalities, the UAE has typically seen migration inflows of 1,000 high-net-worth individuals (HNWIs) per year. However, last year the country welcomed over 5,200 people from this tax bracket. This strong growth is set to sustain in 2023 with industry analysts setting an expectation that 4,500 millionaires will move to and permanently reside in the nation. For over 50 years, the UAE has laid the groundwork for such an evolution, but COVID-19 appears to have accelerated this progress.

Spearheaded by HH Sheikh Mohammed’s wise leadership, the UAE’s deft handling of COVID-19 demonstrated the country’s ability to foster safety and security while also protecting residents’ best interests and the nation’s economy. These efforts garnered global attention to attract affluent investors from all over the world. In turn, a strong influx of wealth has entered the country over recent years, and this trend should hold steady with Dubai on pace to be one of the top 20 wealthiest cities in the world by the end of 2030.

As the emirate strives towards achieving this ambitious projection, the wealth of HNWIs and UHNWIs will play a significant role. Data shows that assets under management (AUM) in the UAE’s wealth management market are forecasted to reach upwards of AED 938 billion in 2023 while showing a CAGR of 10% to result in a market volume of nearly AED 1.4 trillion between now and 2027.

Bas explained: “According to the GlobalData Country Risk Index, the UAE is a low-risk nation that ranks 10th out of 153 countries worldwide. Meticulous management of the coronavirus pandemic, alongside proven stability through times of turbulence such as the financial crisis in the early 2000s, have amounted to this reputable status. This is a driving force behind why the world’s highly affluent are flocking to the UAE – the country provides an ideal environment for safeguarding and growing investors’ assets.”

Global challenges have seen HNWIs and UHNWIs from countries around the world make their way to the UAE in increasing numbers. Many of these expatriates have pinpointed Dubai as a means of safeguarding and growing their assets. Bas is helping such residents through his securitisation firm, DHF Capital; investors experience an annual average ROI of 20%, while investors who have worked with him since the DHF’s inception have witnessed a 114% ROI to more than double their initial investment.