According to a recent report, savings accounts with balances above Dh20 million constituted 59% of total deposits in the UAE in 2022. The report further revealed that the number of high-net-worth individuals (HNWIs) in the UAE is growing, resulting in an increase in their savings.
The study also showed that banks in the country are offering attractive interest rates on savings accounts, prompting HNWIs to park their money in these accounts rather than invest in other asset classes. This trend has been attributed to the current market volatility and the uncertainty surrounding the global economy.
The report highlighted that the UAE’s banking sector is well capitalized and has weathered the challenges posed by the Covid-19 pandemic. Despite the pandemic’s economic impact, the country’s banking sector remained resilient and showed strong growth potential
Moreover, the report noted that the UAE government’s efforts to diversify the economy have also contributed to the banking sector’s growth. The government has implemented several initiatives to attract foreign investment, and the UAE has emerged as a leading destination for foreign investors.
In conclusion, the report highlights the growing importance of the HNWI segment in the UAE’s banking sector. The country’s banks are offering attractive interest rates on savings accounts, making them an attractive investment option for wealthy individuals. Additionally, the UAE government’s efforts to diversify the economy have contributed to the growth of the banking sector. Despite the pandemic’s economic impact, the UAE’s banking sector has remained resilient and is poised for further growth.