The UAE’s financial wealth hit $600 billion in 2020, undeterred by the Covid-19 pandemic’s financial effects, having grown at a compound annual rate of 3 per cent from 2015, according to a new report by the Boston Consulting Group.
Investable wealth accounted for about 69 per cent of it, the BCG report titled Global Wealth 2021: When Clients Take the Lead, revealed.
Global financial wealth rose by more than 8.3 per cent last year to reach a high of $250 trillion, compared with a decline of 8 per cent after the 2008 financial crisis, the management consultancy said.
“Most market crises have an impact on financial wealth globally. However, the pandemic last year was atypical,” said Mustafa Bosca, managing director and partner at BCG.
Most market crises have an impact on financial wealth globally. However, the pandemic last year was atypical
Mustafa Bosca,
managing director and partner, BCG
“Equities and investment funds grew by 11.5 per cent in 2020 due to strong capital market performance. There was a record growth of 10.6 per cent in cash and deposits due to a spike in the savings rate.”
The boom in global financial wealth was attributed to a sharp increase in new savings and a strong stock market performance fuelled by supportive central bank policies, the management consultancy said.
The Covid-19 pandemic pushed the global economy into its deepest recession since the 1930s, prompting governments to inject $16tn in fiscal stimulus last year to bolster their economies as businesses closed and millions of people lost their jobs.
However, stimulus packages, backed by $9tn in monetary support from central banks, led to a resurgence in stock markets in the second half of 2020, propelling global equities to record highs.
The UAE, where 51 per cent of the country’s wealth is owned by people whose net worth is more than $5 million, represented 26 per cent of the GCC’s financial wealth in 2020.
Wealth in the Emirates is expected to grow by a compound annual rate of 4 per cent to $700bn by 2025, according to BCG estimates. Meanwhile, total net wealth in the GCC is projected to reach $6.3tn by 2025, from $5.2tn in 2020.
Saudi Arabia and the UAE account for 71 per cent of the region’s total wealth, said Mr Bosca.
“The UAE has established itself as a leading global financial centre holding significant cross-border wealth. The Emirates is the sixth largest financial centre for cross-border wealth,” he said.
Meanwhile, more than 6,000 people globally became ultra high-net-worth individuals, or UHNWIs, in 2020, according to BCG.
The UHNWI bracket, consisting of people whose fortunes exceed $100m, now includes 60,000 people with a combined $22tn in investable wealth, representing 15 per cent of the world’s total investable wealth, the study revealed.
This echoes a June report by investment bank Credit Suisse that said more people globally became millionaires for the first time in 2020 despite the economic damage caused by Covid-19.
The global number of millionaires grew by 5.2 million to reach 56.1 million in 2020.
While the US currently accounts for most UHNWIs, China is on track to overtake it by the end of the decade, according to BCG.
The consultancy estimates that should growth continue at its current 13 per cent annual rate, China will be home to $10.4tn in UHNWI assets by 2029, followed closely by the US with a projected total of $9.9tn.
Women now account for about 12 per cent of the super rich, with most of them living in the US, Germany and China, according to BCG research.
The study found that equities and investment funds (47 per cent) accounted for the largest proportion of invested onshore assets in 2020.
However, the allocation of onshore assets is set to change by 2025, with currency and deposits set to account for a larger share of onshore assets (47 per cent) in the UAE.
Citing an underserved market, BCG said there are 4.5 million individuals in the Middle East who hold between $500,000 to $10m in their portfolio and have $800 billion in investable wealth.
“Many wealth managers are not yet ready to serve them,” said Mr Bosca.
Separately, the BCG research found that 1.5 billion people around the world – about one in every six individuals – will be at least 65 years old by 2050. That is twice the size of today’s retiree population.
“Individuals in this age band today own $29.3tn in financial assets accessible to wealth managers. Over the next five years, that figure will grow at a [compound annual growth rate] of close to 7 per cent, which means that wealth managers globally will be able to target close to $41.1tn in financial wealth by 2025,” the BCG report said.
Interactions with wealth managers often wind down as clients reach their middle and late retirement stages, leaving many retirees "asset-rich and advice-poor" at a time when their needs are most complex, the study found.
Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
The major Hashd factions linked to Iran:
Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.
Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.
Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.
Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.
Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.
Saraya Al Khorasani: The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.
(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)
LAST-16 FIXTURES
Sunday, January 20
3pm: Jordan v Vietnam at Al Maktoum Stadium, Dubai
6pm: Thailand v China at Hazza bin Zayed Stadium, Al Ain
9pm: Iran v Oman at Mohamed bin Zayed Stadium, Abu Dhabi
Monday, January 21
3pm: Japan v Saudi Arabia at Sharjah Stadium
6pm: Australia v Uzbekistan at Khalifa bin Zayed Stadium, Al Ain
9pm: UAE v Kyrgyzstan at Zayed Sports City Stadium, Abu Dhabi
Tuesday, January 22
5pm: South Korea v Bahrain at Rashid Stadium, Dubai
8pm: Qatar v Iraq at Al Nahyan Stadium, Abu Dhabi
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
