A recent report has demonstrated that the total household wealth in the UAE was estimated around$1.2 trillion at the end of 2022.
According to the Global Wealth Report, issued by Credit Suisse and UBS, wealth per adult in the UAE at the end of 2022 was around $152,556. The ratio of household debt to gross assets in 2022 was 7.8 percent in the UAE, with a slight change after 2021.
However, the report emphasized that the UAE hosts an undeserved number of wealthy expatriate entrepreneurs, some of whom relocated after the global financial crisis.
Moreover, this trend has been underscored over the past year because of the global uncertainties the Russian attack on Ukraine captured.
Besides, to the estimates, around 4,500 high-net-worth individuals will flock to the UAE, mainly in Dubai, to make the country their home.
Regionally, the reports also suggest that the loss of global wealth was heavily concentrated in rich regions like Europe and North America, which together shed$10.9 trillion. Besides, the Asia Pacific region registered losses of $2.1 trillion during the year. Heading the list of failures in market terms in 2022 was the United States, followed by Japan, China, Canada, and Australia.
However, the most significant wealth increases at the other end were registered for Russia, Mexico, India, and Brazil.
According to wealth per adult, Switzerland continues to top the list, followed by the USA, Hong Kong SAR, Australia, and Denmark though a sizable reduction in mean wealth versus 2021.
Reduction in wealth inequalities
Moreover, with the decrease in aggregate wealth, overall wealth inequality also fell in 2011, with the wealth share of the global top 1 percent falling to 44.5 percent.
However, Global median wealth has become a more meaningful indicator of how the typical person is faring and did, in fact, increase by 3 percent in 2022 in contrast to the 3.6 percent fall in wealth per adult. For the world, median wealth has increased, doubling the pace of wealth per adult, and hence is significant because of the quick growth in China.
A brighter outlook
According to the projections of reports, global wealth will increase by 38 percent over the next five years, reaching 629 trillion by 2027. Moreover, the growth through middle-income markets will be the primary driver of global trends. However, the report estimates wealth per adult to reach $110,270 in 2027 and the number of millionaires to reach 86 million as the number of ultra-high net worth individuals is likely to rise to 372,000.