Doha, Qatar: Qatar’s financial wealth is anticipated to experience a robust Compound Annual Growth Rate (CAGR) of 5.1 percent, rising from $302bn to $388bn from 2022 to 2027, according to a report by Boston Consulting Group (BCG).
The report entitled ‘Global Wealth Report 2023: Resetting the Course’ was unveiled during the media roundtable, yesterday.
Markus Massi, Managing Director and Senior Partner at BCG said, “Representing 4.1 percent of the region’s financial wealth in 2022, Qatar’s trajectory signifies strong economic growth and resilience in the face of global challenges. Qatar’s thriving entrepreneurial spirit, coupled with calculated risk-taking, has contributed to this remarkable growth, demonstrating its leadership in the region.
Ultra High Net Worth (UHNW) individuals are the major contributors to Qatar’s wealth growth. In 2022, approximately 38 percent of Qatar’s wealth came from UHNW individuals, worth more than $100m. This contribution is expected to increase to 40 percent by 2027.
Individuals with wealth between $1m - $20m held 16 percent of Qatar’s wealth in 2022, with this figure remaining the same in 2027. Meanwhile, individuals’ worth under $250,000 held 28 percent of the wealth in 2022, expected to decrease to 27 percent by 2027.
“The success of Qatar in attracting and retaining high net worth individuals has been instrumental in driving its economic growth. These individuals not only drive innovation and investment in the region but also contribute to the continued prosperity of Qatar,” said Nimrod Pais, Managing Director and Partner, BCG.
Equities & investment funds are the largest asset class in Qatar, making up 48 percent of total personal wealth in 2022. Life insurance & pensions are expected to have the fastest growth rate of 7.1 percent Compound Annual Growth Rate between 2022 - 2027.
The report also highlights the growth of real assets and liabilities in Qatar. Real assets in Qatar decreased by 0.8 percent per year from 2017 to 2022, reaching $266bn, and are projected to increase by 5.1 percent per year to $341bn by 2027. In comparison, liabilities in Qatar grew by 1.3 percent per year during the same period and are expected to grow by 2.6 percent per year to $38bn by 2027.
