More than eight in 10 affluent investors in the UAE say they are satisfied with their quality of life, well above the global average.
The UAE has ranked among the top three countries for quality of life satisfaction in a new HSBC study of affluent and high-net-worth investors. The research placed the UAE alongside Mexico and India at the top of the 10 markets surveyed.
HSBC released the findings in Dubai on October 22, alongside its first UAE Wealth Investment Summit. The survey was carried out by research firm Ipsos and covered 9,993 affluent and high-net-worth investors worldwide, including 703 in the UAE.
In the UAE, 83% of investors said they were satisfied with their quality of life, compared with a global average of 75%. More than a quarter, at 26%, gave their quality of life a perfect score of 10 out of 10. That was the joint-highest share of any market in the study and well above the global average of 15%. Nearly 90% of those who gave a perfect score also said they felt more confident about their financial future.
UAE Investors Show Strong Financial Confidence
The report points to high levels of confidence among UAE residents when it comes to money. Around 87% of UAE investors said they are confident of meeting their short-term financial goals, while 81% expect to meet their longer-term targets.
UAE respondents are also more likely to be building something new. About 21% said they are launching, acquiring or investing in a new business venture, compared with 17% globally.
The way people think about retirement is also shifting. Around 81% of UAE investors expect to leave work gradually or move into flexible work, and 35% plan to take up a second career, compared with 28% globally. Only 19% expect to retire fully at a fixed age, Gulf News reported. On average, UAE investors are balancing 2.7 major financial priorities at once, slightly more than the global figure of 2.5.
“Investors here are confident, ambitious and internationally connected, and they are planning for the long term,” said Sami Abouzahr, HSBC’s Head of International Wealth and Premier Banking for the Middle East and UAE. “The UAE has built an environment where people and their wealth can thrive, and this research shows it.”
Inheritance and Planning for the Next Generation
Family wealth is a major theme in the findings. Half of UAE investors expect to receive a significant inheritance, compared with 43% globally. Among those who could estimate the amount, the median expected inheritance is about AED 2 million ($545,000), roughly double the global figure, and most expect to receive it at around the age of 52.
Looking ahead, 58% of UAE investors expect to leave a substantial financial legacy to their heirs or to other causes. Of those planning a legacy, 32% want their heirs to use the money to start or grow a business. That is the highest share across all 10 markets, compared with 24% globally.
Nearly all UAE parents in the survey, at 98%, already support the next generation in some way. The most common forms of support are opening up professional networks (39%), acting as strategic advisers (33%) and providing direct funding (29%), Khaleej Times reported. In addition, 82% said they have a clear strategy for how their wealth will support their family across generations, compared with 75% globally.
“A significant transfer of wealth between generations is under way in the UAE and families want to get it right,” said Craig Worobec, HSBC’s Head of Wealth and Premier Solutions for the Middle East and UAE. He added that more investors are choosing to manage their international wealth from the UAE, citing the country’s business-friendly policy framework.
