High-net-worth investors in the UAE are at the forefront of a global wealth management transformation, according to a report by HSBC titled "High-net-worth investors profile 2025." The report highlights how UAE-based investors are exceeding global averages in confidence and resilience, as well as deepening their engagement with alternative assets and international opportunities, reflecting the region's dynamic approach to wealth creation and protection.

Data collected from 10,797 individual investors across 12 markets also shows a growing appetite for diversification across asset classes and geographies. Younger investors, particularly Generation Z , are driving this shift, having tripled their allocations to alternative assets in the past 12 months. Overall, 5 in 10 high-net-worth investors globally expect to hold alternative investments in their portfolios over the next year—double their current holdings—with 3 in 10 stating they will invest in private markets.

Investment portfolio transformations

Cash allocations in UAE portfolios have fallen to just 13%, the lowest globally and well below the global average of 20%, indicating investors are shifting their focus to investing in gold. Data from the UAE shows a 5-point increase in gold allocations, with 57% of wealthy investors planning to invest in gold, while nearly 4 in 10 are interested in trading in tokenized gold assets. A further 36% of wealthy investors own investment alternatives—such as private market funds and hedge funds—a 4% increase from last year.

Confidence in achieving goals

Investors in the UAE top global data in terms of confidence levels:

• 86% are confident in achieving their short-term goals (compared to 81% globally).

• 78% are confident in achieving their medium-term goals (compared to 72% globally).

• 85% are confident in achieving their long-term goals (compared to 76% globally).

• The satisfaction rate with the quality of life reached 85%, which is higher than the global average of 76%.

Commenting on the UAE data within the global context, Dinesh Sharma, Head of International Wealth Management and Premier Banking ( IWPB ) in the Middle East, said: “ With global cash allocations at record lows, investors in the UAE are actively investing and deploying their funds, including seeking alternative investments and considering gold as part of their diversified portfolios. Our research findings show that UAE investors are not only focusing on domestic opportunities such as owning residential properties, but are also adopting an international diversification approach, with the US and UK among their preferred overseas markets.”

Sharma added: “This point about investor confidence in the UAE is consistent with the broader landscape of wealthy and skilled individuals arriving in the UAE over the past few years. This is a significant trend that underpins our expansion here and reinforces our commitment to being the preferred partner for international clients in the wealth management space.”

We see the UAE as a dynamic hub for wealth management in the Middle East, and we fully expect this sector to continue to grow sustainably in the medium and long term.”

Global Perspective

56% of wealthy investors in the UAE plan to expand their investments internationally, a higher percentage than any other market surveyed. The United States, United Kingdom, and Germany are the most popular destinations for offshore investment accounts.

Social media platforms (53%), digital banking channels (38%), and non-banking digital channels (35%) are also considered the most important channels for obtaining investment-related information, with heavy reliance on the expertise of wealth management experts (62%) and family members (35%) to guide decisions.

Globally, younger generations are leading the shift away from cash, with Gen Z and millennial investors reducing their average investment from 31% to 17%. However, opinions vary regarding the future of cash. Half of wealthy investors plan to keep their cash allocations unchanged, while 2 in 10 expect to reduce them, and 3 in 10 expect to increase them.

Looking ahead, UAE investors are expected to invest more of their cash assets (28%), while Chinese investors are likely to increase their investments (34%) over the next 12 months.

About HSBC in the Middle East, North Africa and Turkey
HSBC is one of the largest and most widely represented international banking institutions in the Middle East, North Africa and Turkey (MENAT) region, with a presence in nine countries across the region: Algeria, Bahrain, Egypt, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, and the United Arab Emirates. In Saudi Arabia, HSBC is a 31% shareholder in Alawwal Bank and a 51% shareholder in HSBC Saudi Arabia Investment Bank. As of December 31, 2024, the bank's assets in the MENAT region reached US$73 billion. www.hsbc.ae

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