More Emirati multimillionaires now make their wealth from financial services than from oil as the United Arab Emirates (UAE) encourages diversification.

 

"The United Arab Emirates’ diversification drive has, in two generations, turned a collection of oil sheikhdoms into a financial superpower," says WealthInsight’s Oliver Williams. "Not only has this reduced the country’s dependency on oil, but it has also created a new generation of multimillionaires who owe their wealth from a burgeoning financial sector".

Financial services is the primary source of wealth for 27% of Emirati multimillionaires (2012). This includes investments in the real estate sector which is a prominent but also volatile segment of the UAE economy. Favourable taxes, notably the lack of income tax, and free zones such as the Dubai International Financial Centre and Jebel Ali Free Zone, have lured many financial corporations to the UAE, especially those demanding a presence in the Middle East.

The second-largest industry is oil and gas, which accounts for 20% of multimillionaire wealth in the UAE. Transport and logistics, the fourth largest, was boosted by a rapidly growing aviation industry, with Dubai International Airport being the world’s fourth-busiest.

More Emirati multimillionaires now make their wealth from financial services than from oil as the United Arab Emirates (UAE) encourages diversification.

"The United Arab Emirates’ diversification drive has, in two generations, turned a collection of oil sheikhdoms into a financial superpower," says WealthInsight’s Oliver Williams. "Not only has this reduced the country’s dependency on oil, but it has also created a new generation of multimillionaires who owe their wealth from a burgeoning financial sector".

Financial services is the primary source of wealth for 27% of Emirati multimillionaires (2012). This includes investments in the real estate sector which is a prominent but also volatile segment of the UAE economy. Favourable taxes, notably the lack of income tax, and free zones such as the Dubai International Financial Centre and Jebel Ali Free Zone, have lured many financial corporations to the UAE, especially those demanding a presence in the Middle East.

The second-largest industry is oil and gas, which accounts for 20% of multimillionaire wealth in the UAE. Transport and logistics, the fourth largest, was boosted by a rapidly growing aviation industry, with Dubai International Airport being the world’s fourth-busiest.

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For more information please see attached white paper: ‘UAE In search of the Richer Emirate’.