After becoming a shelter for the Russian capital, Dubai has defied a global decline in the fortunes of the ultra-wealthy.
In 2022, the United Arab Emirates had the fastest-growing private wealth market, with assets under management hitting half a trillion Dollars.
Following the imposition of sanctions on Vladimir Putin’s government in the wake of the Ukraine War, the region saw the greatest benefits from a rush of Russian assets from Europe.
A flood of capital also poured into the UAE from other Middle Eastern, Asian, and African countries.
According to a recent estimate by Boston Consulting Group (BCG), financial wealth in the Emirates is predicted to reach $800 billion (£629 billion) in 2027 with an annual growth rate of about 10%. The consulting firm also said.
The minimal legal barriers to starting enterprises and investing in real estate in the UAE were cited by analysts as a major factor in the growth.
Due to this, the UAE, which has no income tax, has been prospering, with property prices in Dubai rising by 63 per cent since the beginning of 2022.
Despite rising prices, weak market performance, and geopolitical unpredictability, the Middle East’s wealth has resisted a global downturn for the super-rich.
Following the global financial crisis, private wealth increased steadily for nearly 15 years, but in 2022 it fell by 4% to $255 trillion.
The most severely affected region was North America, where financial wealth fell by more than 8% to $116 trillion. A 3 per cent reduction occurred in Western Europe.
A successful year in 2021, when financial wealth increased by more than 10%, one of the biggest increases in more than a decade, was followed by a decline.
The market is anticipated to recover by around 5% in 2023 to reach $267 trillion.