There has been a steady decrease in global wealth of late due to various factors ranging from business-related to political issues, but the United Arab Emirates has overcome this slide in the global markets and economy, and the personal wealth of the country has risen by almost 5 percentage points from 2013 to 2018. This increase was amidst the numerous geopolitical threats, a dip in the stock indices, and the interest rate challenges.
The United Arab Emirates is the 26th biggest wealthy market by the end of 2017, and the wealth of the UAE markets are expected to grow shortly. It is likely that the wealth of the UAE markets will grow by almost 51% and will reach $1.4 trillion, which translates to AED 5.14 trillion by the year 2027. This rise in the wealth of the people in the United Arab Emirates will be fuelled by the gradual escalation of companies coming in to set up their companies, the increasing globalization and a growing trend in the migration of High Net Worth Individuals (HNWIs).
Getting Ready for Change in the Business Environment
There have been significant shifts in trends in the world, and the UAE government has shown great potential in understanding and adapting to these global changes. The United Arab Emirates has not only understood and worked according to the changes in the worldwide market but has also been able to provide excellent and profitable results. The expectations from the business are high because while the people and managers all over the globe are using the technologies and other innovations, the Middle East wealth managers are yet to embrace these changes in the business environment fully. Once they understand about following the technological changes, there will be a more significant inflow of wealth and the markets of the UAE will be more profitable.
According to the new World Health Report, the total number of High Net Worth Individuals in the country is all set to increase and reach over 140,000 by the year 2027. Correspondingly, the number of billionaires in the country will increase to 30 by the same year. Since HNWIs hold more than half of the total wealth in the UAE (51%), the increase in their numbers will lead to the betterment of the country’s economy.
Future Prospects in the UAE
The UAE has understood that relying only on a single source of revenue is not a very good move, and therefore, the government of the country has taken steps towards diversifying the economy. As the country is moving towards the future, it is trying to tap into all possible sources of revenue and is trying to innovate new avenues of revenues.
In the current scenario, the UAE is getting ready to embrace new technologies in business. The smartphone ownership explosion, high rate of internet penetration, and a tech-savvy population are some of the reasons which make investing in UAE a very lucrative option. There is no area which has been overlooked by the government and has some of the most ambitious goals for the near future.
In January of 2019. The ruler of Dubai, Sheikh Mohammed bin Rashid has unveiled a complete roadmap for the future of the country. By the year 2020 UAE expects to be a front runner in the use of the Blockchain Technology, by 2030 it expects 25% of the buildings in the country to be 3-D printed and by 2031 the country anticipates to place 100% reliance on Artificial technology (AI) for all government services and analysis of the different kinds of data. All in all, the UAE is all set to adopt innovative thinking and foster and support future innovations.
This is why setting up a company either in the free zone or mainland Dubai is a very lucrative and profitable option. When setting up a company in the UAE, keeping the finances in check is very important. Whether it is the smaller bifurcations in finance such as Bookkeeping and Auditing, or departments like Accounting, finance is the lifeblood of a company, and the future success of a company can depend on whether the funds of the company are judiciously utilized.
If you are looking for a firm which will take care of the financial aspects of your company, JAXA is here to help. We understand the working of your company and then offer you a customized solution for your business problem. To know the details about the services provided by JAXA do contact us – we’ll be happy to help!