Latest news with #wealthhub
Khaleej Times
5 days ago
- Business
- Khaleej Times
UAE emerging as world's new wealth, investment hub; here's why
The UAE is fast establishing itself as a leading global wealth hub and a magnet for high-net-worth individuals (HNWIs), thanks to its business-friendly environment, robust regulatory framework, and political stability. The latest report by Capgemini Research Institute said that UAE along with Singapore, Hong Kong and Saudi Arabia have established themselves as prime alternatives, utilising advantageous tax policies, strong financial ecosystems, and political stability to draw global wealth.' The study noted global diversification is also a key strategy for next-gen high-net-worth individuals (HNWIs), who seek investment opportunities in traditional wealth hubs of London, Switzerland, and New York, therefore, emerging wealth hubs such as UAE, Singapore, Hong Kong, and Saudi Arabia are very quickly becoming attractive destinations. In the post-pandemic period, the UAE has seen record millionaires migration from around the world. According to Henley & Partners, the UAE attracted 7,200 millionaires from around the world in 2024, 4,700 in 2023 and 5,200 in 2022, attracted by zero income tax, safety and security, high returns on property investments and world-class quality of life. This is in addition to the 6,500 tech millionaires that the emirate housed in the first half of 2024. With a population of just over 10 million, the UAE is the world's 14th largest wealth market, housing 130,500 high-net-worth individuals or millionaires. UAE a wealth management hub The Middle East is also emerging as a formidable contender in global wealth management and the UAE and Saudi Arabia are capitalising on this trend as well, moving quickly to draft regulations that support international investors. 'In an increasingly uncertain world, high net worth individuals no longer question whether to keep their wealth in Switzerland, Singapore, UAE or Saudi Arabia. Instead, they embrace a multi-jurisdictional approach, distributing their assets across various financial centres to mitigate risks and maximise opportunities. Wealth management firms are evolving their strategies to provide clients with a unified view of their diverse investments,' said Capgemini Research Institute's study — Sail the great wealth transfer, setting a course to win next-gen HNWIs. The UAE's net wealth is growing faster than the regional and global average, reaching $2.9 trillion in 2023, growing by 10 per cent from the previous year, versus 8 per cent growth in. the Middle East and Africa region, according to Boston Consulting Group (BCG) annual global wealth report, Global Wealth Report 2024. Meanwhile, global financial wealth rose 7 per cent in 2023, following a decline of 4 per cent in 2022. Over the next five years, an estimated $92 trillion of financial wealth will be created globally. In the UAE, around 81 per cent of financial wealth is investable, which is expected to climb to 83 per cent by 2028, offering wealth managers massive opportunity. Influx of wealth managers To capitalise on the growing opportunities, local and foreign wealth management firms are further strengthening their teams while many new firms have established their presence in the UAE by relocating their offices in Dubai International Financial Centre (DIFC) and ADGM in Abu Dhabi over the last few years. As the Middle East, Africa, and South Asia's leading financial hub, DIFC oversees $450 billion (Dh1.65 trillion) in private wealth. More importantly, the free zone has access to $3 trillion in private wealth within an hour's flight, thanks to Dubai's strategic location. Last year, BlackRock, the world's largest asset manager with $11.5 trillion, was granted a commercial licence to operate in Abu Dhabi. Similarly, Rothschild & Co, a global wealth and management firm with over $100 billion in assets under management — expanded its business in Dubai last year with a new office to cater to the growing number of affluent population in the emirate. ADGM in Abu Dhabi granted licence to trillion-dollar asset management firms PGIM and New York Stock Exchange-listed Prudential Financial and Nuveen. During the first quarter of 2025, ADGM reported that assets under management grew 33 per cent compared to the same period in 2024. At the end of Q1 2025, 119 asset and fund managers managed a total of 184 funds out of ADGM. Next-gen millionaires seek high returns Capgemini Research Institute revealed that 88 per cent of relationship managers say that next-gen millionaires are 'more interested in alternatives than baby boomers.' While baby boomers focus most often on wealth preservation, next-gen HNWIs are predominantly risk takers, favouring higher growth asset classes such as private equity and cryptocurrency. 'With next-gen clients expected to switch relationship managers post-wealth transfer, factors like advisor age, digital experience, and relevance of the overall value proposition are key. To align with the evolving needs of younger and globally mobile investors, wealth management firms must modernize client engagement through artificial intelligence-driven tools, digital channels and tailored solutions,' Eric Mellor, wealth management specialist at Temenos UAE said. Industry executives suggest that many family offices especially led by second and third generations are now investing in cryptocurrency businesses, viewing them not as speculative gambles but as structured, strategic asset classes.
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Travel + Leisure
28-05-2025
- Business
- Travel + Leisure
This City Was Named the World's Fastest-growing Wealth Hub With 156 Centimillionaires and 22 Billionaires
Shenzhen, China, is the fastest-growing wealth hub in the world. The Asian city is home to 50,800 millionaires, 156 centimillionaires, and 22 billionaires. A U.S. city is in second place, having experienced a 125 percent growth in millionaires over the last decade. Eight U.S. cities made the ranking. The top 5 include spots in India, the U.S., and China. Henley & Partners, a company helping people understand their options for residence and citizenship by investment released its World Wealthiest Cities Report. The report is published in partnership with global wealth intelligence firm New World Wealth, which tracks global wealth migration, With all of its combined data, the two companies created several lists, including the most expensive cities in the world and the wealthiest cities in the world. It also identified which destination is the fastest-growing wealth hub on the planet—and that honor went to Shenzhen, China. "Asia's top tech hub, Shenzhen, is the base city for global tech giants Huawei, Tencent, BYD, DJI, and ZTE and has experienced especially strong wealth growth over the past 20 years," Andrew Amoils, head of research at New World Wealth, explained. "It is now arguably the world's leading city in a number of key tech sub-sectors including computer hardware, electric vehicles, Wi-Fi dongles, mobile phones, flying drones, 5G, energy units, and electronics." The report indicates that the southeastern Chinese city has over 17 million residents, including 22 billionaires, 156 centimillionaires, and over 50,000 millionaires. However, Shenzhen is not the only city making waves. According to the findings, Scottsdale, Arizona, is the No. 2 fastest-growing hub in the world. It experienced a 125 percent growth in millionaires over the last decade. The city now boasts 14,800 millionaires, 64 centimillionaires, and five billionaires. Last year, Scottsdale was recognized as the best golf city in America, featuring an impressive 53 golf courses. Rounding out the top five global wealth hubs are Bengaluru, India, in third, followed by West Palm Beach, Florida, and Hangzhou, China. "Three other American cities—Miami, whose residents enjoy Florida's low state taxes, Washington D.C., and Austin, Texas, dubbed 'Silicon Hills' have also seen notably high growth between 2014 and 2024," the findings showed, showcasing that the U.S. still has what it takes to be on the global wealth stage. See the complete findings at
