UAE Wealth Analysis Report : High Net Worth (HNW) Investors

Wealth in the UAE: HNW Investors
No of Pages – 41
Publishing Date - May 25, 2016
Browse detailed TOC, Tables, Figures, Charts in Wealth in the UAE: HNW Investors athttp://www.absolutereports.com/10185405
Summary
The resident population in the UAE is predominantly comprised of expats. Reflecting this, expats
also constitute a noteworthy 75.6% of the local HNW population - which has considerable
implications when it comes to investors' product and service demand. With strong demand for all
planning services, being able to offer a holistic service proposition is a must in the UAE. Emirati
HNW individuals typically come from either an entrepreneurial background or have sourced their
wealth through earned income. The leading generator of wealth is oil, gas, and mining followed by
property and real estate.
Key Findings
- Advisory mandates are the preferred type of asset management among UAE investors, followed by
discretionary services. Looking forward, the already strong demand for advisory mandates will
continue to increase.
- The desire to gain access to more sophisticated investment products only available through
professionals and the complexity of their portfolios are the leading reasons Emirati HNW individuals
seek professional advice.
- Those seeking to self-direct are largely motivated by the desire to retain exclusive control over at
least some of their portfolio and to avoid management fees.
- The UAE HNW portfolio is balanced, with bonds and property accounting for the largest share of
allocation followed by equities. Demand for all asset classes is expected to increase, with the
exception of property investments.
Synopsis
Verdict Financial's “Wealth in the UAE: HNW Investors” analyzes the investing preferences and
portfolio allocation of Emirati HNW investors. The report is based on our proprietary Global Wealth
Managers Survey.
Specifically the report:
- Profiles the average Emirati HNW investor in terms of their demographics and analyzes the expat
opportunity.
- Analyzes which wealth management mandates are preferred among Emirati HNW investors and
how demand will change in the future.
- Examines the allocation of Emirati HNW investors' portfolios into different asset classes and how
this is expected to develop.
- Analyzes product and service demand among Emirati HNW investors.
Reasons To Buy
- Develop and enhance your client targeting strategies using our data on HNW profiles and sources of
wealth.
- Give your marketing strategies the edge required and capture new clients using insights from our
data on HNW investors' drivers for seeking investment advice vs self-directing.
- Tailor your investment product portfolio to match current and future demand for different asset
classes among HNW individuals.
- Develop your service proposition to match the service and product demand expressed by Emirati
HNW investors and react proactively to the forecasted change in demand.
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EXECUTIVE SUMMARY
HNW individuals are typically expats and have sourced their wealth either through earned income or
entrepreneurship
Key findings
Critical success factors
PROFILING THE EMIRATI HNW INVESTOR
The mining, oil, and gas sector is the leading source of UAE HNW wealth
Professionals are the leading demographic segment
Many HNW investors have built their fortunes through oil, mining, and gas
Expats form the majority of the local HNW population
Expats constitute 75.6% of the local HNW population
Fear of insufficient control over their investments motivates investors to keep their wealth in their
country of residence
India is the largest feeder country for HNW expats
EMIRATI HNW INVESTMENT STYLE PREFERENCES
Advisory mandates dominate the UAE investment mandate landscape
Wealth managers should highlight their specialist expertise
The largest proportion of HNW wealth is in advisory mandates
Demand is strongest for advisory mandates
Advisory mandates will remain the favored asset management mandate
Emirati HNW investors who self-direct want to have control over some of their portfolio
ASSET ALLOCATION TRENDS AMONG EMIRATI HNW INDIVIDUALS
Bonds and commodities are the leading asset classes among UAE investors
Equities constitute a fifth of HNW investors' managed wealth
Bond investments are forecast to increase amid an uncertain environment
Cash and near-cash allocation is below the global average
Property constitutes 27% of the typical HNW portfolio
Alternatives constitute 3% of the typical HNW portfolio
Commodities constitute 6% of the portfolio
EMIRATI HNW PRODUCT AND SERVICE DEMAND
Demand for planning services is high in the UAE
The high proportion of expats drives demand for planning services
Tax planning demand is high among the UAE's diverse HNW community
While the UAE's tax system is straightforward, expats often have different tax planning needs
Repatriation brings particular challenges
Demand for tax planning will remain strong
APPENDIX
Abbreviations and acronyms
Definitions
HNW
Liquid assets
Sukuk
Methodology
Verdict Financial's 2015 Global Wealth Managers Survey
Verdict Financial's 2014 Global Wealth Managers Survey
Exchange rates
Bibliography
Further reading
About Verdict Financial
Disclaimer
Report Details –
Date of Publishing - May 25, 2016
No of Pages – 41
Single User PDF License – $3450
Corporate License – $10350
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The PDF document links to survey report which analyzes the investing preferences and portfolio allocation of Emirati HNW investors. The report is based on Verdict Financial’s proprietary Global Wealth Managers Survey. Key findings, Critical success factors, Emirati HNW investor profile, Emirati HNW investment style preferences, asset allocation trends among Emirati HNW individuals, their current and future preferences, product and service demand have been covered in detail in the report.