HNWI Asset Allocation in the UAE 2013

Published: Oct, 2013 | Pages: 74 | Publisher: WealthInsight
Industry: Wealth Management | Report Format: Electronic (PDF)


Synopsis
 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 2007 (the peak before the global financial crisis) and the end of 2012. This enables us to determine how well the country's HNWIs have performed through the crisis.
Summary
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 2017 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 2008 to 2012
 HNWI volume and wealth forecasts to 2017
 HNWI and UHNWI asset allocations across 13 asset classes 
 Insights into the drivers of HNWI wealth
Reason To Buy
 The WealthInsight Intelligence Center Database 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.
 The Intelligence Center also includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
 With the Database 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 2017.
Key Highlights
 At the end of 2012, real estate was the largest asset class for HNWIs in the UAE, accounting for 23.2% of total HNWI assets. This was followed by cash with 20.7% equities with 20.4%, business interests with 20.0%, alternatives with 12.0% and fixed income products with 3.8%.
 Cash products recorded the strongest growth over the review period, driven by a movement to safer assets during the financial crisis. 
 Over the forecast period, equities are expected to be the top-performing asset class for HNWIs, followed by business interest and then real estate. Cash will be the worst performing asset class. As a result, there will be a movement away from cash and towards equities.
 Collectables accounted for 1.2% of the total assets of local HNWIs at the end of 2012. This amounts to US$2.1 billion in HNWI assets. This includes US$360 million worth of fine art.
 WealthInsight's research showed that, at the end of 2012, 29% of UAE HNWIs had second homes abroad. The largest destination for these homes was London.
 At the end of 2012, HNWI liquid assets amounted to US$49 billion, representing 26.9% of the wealth holdings of local HNWIs. 
 Investment funds (held by asset managers and wealth managers) accounted for US$50 billion of HNWI assets in 2012, equating to 27.3% of HNWI wealth in 2012.

 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 Wealth in Context
3.3.1 World statistics
3.3.2 Distribution of wealth in the UAE
3.4 HNWI Volume and Wealth Trends
4 Analysis of UAE HNWI Investments
4.1 Analysis by Asset Classes
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 Trends of investments in cash and deposits
4.1.5 Trends of investments in fixed income
4.1.6 Trends of investments in equity
4.1.7 Trends of investments in business interests
4.2 Analysis of Foreign Investments
4.2.1 Investments in Europe
4.2.2 Investments in the rest of the Middle East (including Turkey and Egypt)
4.2.3 Investments in Asia-Pacific
4.3 Alternative Breakdown: Liquid vs. Investable Assets
4.4 Analysis of Local UHNWI Investments
5 Competitive Landscape of the Wealth Sector
5.1 Competitive Landscape
5.1.1 Private Banks
5.1.2 Wealth managers
5.1.3 Family Offices
5.1.4 Financial Advisors
5.2 Recent developments
5.3 Wealth Management Industry - Clientele Model and Maturity
5.4 Behavioral Mapping of Wealth Management and Private Banking Industry in the UAE
5.5 Pension Fund Industry
5.6 Middle Eastern Private Banking
6 Appendix
6.1 Property Regulations
6.2 Regulations on Taxes
6.3 Economic Indicators
6.3.1 LC to US$ exchange rate
6.3.2 Real GDP growth
6.3.3 Per capita GDP
6.3.4 Domestic market capitalization
6.3.5 Commodity index
6.3.6 Inflation rate
6.3.7 Interest rate
6.3.8 Balance of payments
6.3.9 Stock market performance
6.4 Wealth Breakdowns
7 About WealthInsight

Table 1: HNWI Wealth Band and Group Definitions
Table 2: The UAE: Emirates by population, 2012
Table 3: The UAE: Allocations of HNWI Assets (%), 2007?2017
Table 4: The UAE: HNWIs ? Holdings Growth (%), 2007-2017
Table 5: The UAE: Allocations of HNWI Assets (US$ billion), 2007?2017
Table 6: The UAE: HNWIs - Trends of Investments in Alternative Assets (%), 2007-2017
Table 7: The UAE: HNWIs - Alternative Asset Composition (%), 2007-2017
Table 8: Global: Trends in "Art, Wine and Wheels", 2007-2012
Table 9: The UAE: Residential Real Estate Price Performance, 2007 - 2013
Table 10: Global: Prime Residential Real Estate Prices (US$ per square meter), 2012
Table 11: The UAE: Dubai Office Demand by Sector, 2Q 2013
Table 12: Global: Prime International Cities Performance (%), 2007-2013
Table 13: The UAE: HNWIs -Foreign investment allocations per asset class (%), 2007-2017
Table 14: The UAE: HNWIs - Liquidity Breakdown (%), 2007-2017
Table 15: The UAE: HNWIs - Liquidity Breakdown (US$ Billion), 2007-2017
Table 16: The UAE: UHNWIs - Allocations and Share of HNWI Assets (%), 2012
Table 17: The UAE: Major Private Banks ranked by local AuM (US$ Billion), 2012
Table 18: The UAE: The UAE: Local Private Banks, 2012
Table 19: The UAE: The UAE: Foreign Private Banks with offices in the UAE, 2012
Table 20: The UAE: Wealth Managers, 2012
Table 21: The UAE: Wealth Managers per Emirate, 2012
Table 22: The UAE: Family Offices, 2012
Table 23: The UAE: Financial Advisors, 2012
Table 24: Middle East: Major Private Banks based outside the UAE (US$ Billion), 2012
Table 25: The UAE: LC to US$ Exchange Rate, 2007-2017
Table 26: The UAE: Real GDP Growth (%), 2007-2017
Table 27: The UAE: GDP Per Capita, 2007-2017
Table 28: The UAE: Domestic Market Capitalization (US$ Billion), 2007-2012
Table 29: Global: Commodity Indices, 2007-2017
Table 30: The UAE: Inflation Rate, 2007-2017
Table 31: The UAE: Benchmark Interest Rate, 2007-2017
Table 32: The UAE: Balance of Payments (US$ Billion), 2007-2012
Table 33: The UAE: Stock Market Performance, 2007-2012
Table 34: The UAE: HNWI Wealth vs GDP Ratio (%), 2007-2017
Table 35: The UAE: Appendix 1
Table 36: The UAE: Appendix 2
Table 37: The UAE: Family Offices, 2012
Table 38: The UAE: Financial Advisors, 2012
Table 39: Middle East: Major Private Banks based outside the UAE (US$ Billion), 2012
Table 40: The UAE: LC to US$ Exchange Rate, 2007-2017
Table 41: The UAE: Real GDP Growth (%), 2007-2017
Table 42: The UAE: GDP Per Capita, 2007-2017
Table 43: The UAE: Domestic Market Capitalization (US$ Billion), 2007-2012
Table 44: Global: Commodity Indices, 2007-2017
Table 45: The UAE: Inflation Rate, 2007-2017
Table 46: The UAE: Benchmark Interest Rate, 2007-2017
Table 47: The UAE: Balance of Payments (US$ Billion), 2007-2012
Table 48: The UAE: Stock Market Performance, 2007-2012
Table 49: The UAE: HNWI Wealth vs GDP Ratio (%), 2007-2017
Table 50: The UAE: Appendix 1
Table 51: The UAE: Appendix 2