UAE Private Wealth grew 10.2 percent in 2015, BCG

According to a new report by The Boston Consulting Group (BCG), the Private wealth in the United Arab Emirates (UAE) recorded a strong growth of 10.2 percentin 2015.

In its new report, Global Wealth 2016: Navigating the New Client Landscape, the global agency said that the growth of private wealth in the UAE was mainly due to cash and deposits. The data showed that the amount of wealth held in cash and deposits increased by 16.7 percent in the country compared to 0.7 percent for bonds, and 3.8 per cent for equities between 2014 and 2015

Analysts said that the country is expected to record strong growth in the next five years. The report showed that the country's wealth breakdown is predicted to be 19.2 percent in equities, 12.1 percent in cash and deposits, and 4.8 percent in bonds. The number of millionaire households rose by 8.5 percent in 2015 and is expected to grow by another 7.9 percent by 2020.

Markus Massi, Partner & Managing Director of BCG Middle East's Financial Services practice, said, "Segmentation approaches based mainly on wealth level continue to be used by the majority of wealth managers, neglect what clients are truly willing to pay for. Such approaches no longer allow wealth managers to capitalize on the full potential of the market."

The report looked at the emergence of private wealth from both a global and regional point of view, it also addressed important industry trends and studied evolving client needs.