UAE WealthTech Solutions Market Assessment, By Component [Solution, Services], By Deployment Mode [On-premises, Cloud], By Enterprise [Large Enterprises, Small and Medium Enterprises], By End-user [Banking, Investment Firms, Wealth Management Firms, Other

UAE WealthTech Solutions Market Assessment, By Component [Solution, Services], By Deployment Mode [On-premises, Cloud], By Enterprise [Large Enterprises, Small and Medium Enterprises], By End-user [Banking, Investment Firms, Wealth Management Firms, Others], By Region, Opportunities and Forecast, 2017-2031F

UAE WealthTech solutions market is projected to witness a CAGR of 16.91% during the forecast period 2024-2031, growing from USD 25.62 million in 2023 to USD 89.41 million in 2031. It is one of the fastest-growing markets in the UAE, where multiple factors come together to drive market growth. People seek ease and efficiency in financial matters, hence the demand for WealthTech tools is escalating massively. Companies in this industry are upgrading customer service by incorporating the latest technologies, providing customized services, and smoothening communication channels. Continuous development in AI, ML, and big data analytics drive the efficiency and user-friendliness of WealthTech solutions more.

Moreover, blockchain technologies propose secure options with full transparency of wealth management while growing awareness of sustainable investments and pushing for solutions offering ESG criteria. The ease of access and affordability of investment opportunities are being made much easier through WealthTech platforms, hence the popularity. Favorable financial regulations and supportive government policies add to the growth of the market while millennials and Gen Z, with their tech-savvy, further drive the demand for digital financial services. All combined, these factors shape a very dynamic and fast-moving WealthTech landscape in the UAE.

WealthTech is a mix of technology and wealth management focused on automation, leading to the enhancement of financial services. In June 2024, Sarwa Digital Wealth (Capital) Limited launched Sarwa, the leading investing platform and application in UAE, introducing the new face of its upgraded product, Sarwa Save+. With the prosperous background of Sarwa Save, Sarwa Save+ offers a higher yield and thus turns out to be an attractive addition to Sarwa's wide range of investment products.

Increased Investments in Advanced Technologies Fuels Market Growth

The heightened investments in advanced technologies remain some of the main contributors to the growth in the UAE WealthTech solutions market. Additionally, vast amounts of capital are flowing in concerning technological innovations such as AI, ML, and big data analytics on the back of ever-growing demand for innovative solutions in the field of finance. These developments are playing a crucial role in altering the ways of wealth management by improving the level of predictability to a great degree, automating complicated processes, and offering investment strategies that are more in tune with individual needs. In 2023, SC Ventures, Standard Chartered's arm for fintech, investments, and ventures, invested in BetterTradeOff, a Singapore-based firm, in exchange for an extension of the digital wealth advisory landscape. The investment would provide the balance for BTO's next phase of technological enhancements and geographical expansion in the markets of Asia and beyond. UAE has put heavy emphasis on digitization and technology development, hence laying a concrete ground for these technologies to come into their own. Accordingly, investors are willing to support platforms, that apply advanced tools to the provision of better services for users and are data-driven. This influx of investors will speed up the development and deployment of sophisticated WealthTech solutions, positioning the UAE as the region's leading hub for financial innovation and technology.

Growing Interest in Digital Financial Services to Boost Market Growth

Interest in digital financial services will remain one of the key growth drivers for UAE WealthTech solutions market. As consumers increasingly look for convenience and efficiency in managing their finances, digital platforms become increasingly popular. With the tech-savvy population of UAE and supportive regulatory regimes, the appetite for innovative digital solutions that allow customers to seamlessly access financial services on the go is high. WealthTech companies capitalize on this trend by developing and creating intuitive user experiences, sophisticated analytics, and personalized advice. In July 2024, the regional investment platform, StashAway, announced a new fixed-income portfolio, Income Investing powered by J.P. Morgan Asset Management, to make consistent income easier to generate. The income investing portfolio is the first in the market to give investors the complete flexibility to tailor their income, whether reinvesting dividends or receiving a regular payout. The rapid growth in demand indicates a more significant shift toward digitalization in the financial sector and places the UAE as one of the leading countries in adopting and integrating advanced financial technologies. As digital financial services continue to expand, their role at the center of UAE wealth management's future will grow profoundly.

Solutions Segment Dominates Market Share

At present, solution-based offerings dominate over service-based offerings in UAE WealthTech solutions market. The core focus is on digital investment solutions, which include robo-advisors, automated portfolio management tools, and advanced trading platforms that offer end-to-end tech-enabled financial management and investment strategies for individual investors and institutions alike.

The need for innovative, people-oriented, easy, and low-cost ways of managing and accumulating wealth is expected to shift to solutions. It leverages advanced technologies using AI and big data analytics to deliver personalized investment strategies, real-time insights, and efficient portfolio management. This emphasis on technological solutions aligns with the UAE's vision to be among the world's best in financial technology and digital transformation, pointing toward continued growth of the sector.

Dubai to Dominate the UAE WealthTech Solutions Market Share

The WealthTech solutions market in UAE is led by Dubai. The status of Dubai as a financial and technological hub significantly contributes to its supremacy in the WealthTech sector. With its state-of-the-art infrastructure, high concentration of financial institutions, and vibrant startup environment, Dubai plays a crucial role in adopting and developing various WealthTech innovations. The favorable regulatory environment of Dubai, in addition to its emphasis on digital transformation and smart city initiatives, completes the set of reasons that make Dubai a destination for WealthTech companies and investors. In July 2023, Singapore-based, technology-driven family office for entrepreneurs, Aument Capital Partners (ACP), and investment platform StashAway announced a partnership that would democratize access to private market investments. In line with the collaboration, ACP will leverage the broad private market offered by StashAway, where all ACP clients can invest in top-performing funds managed by top-notch private equity managers.

Abu Dhabi is positioning itself as an emerging player in UAE's growing WealthTech solutions market, backed by the emirate's enabling regulatory environment through the Abu Dhabi Global Market, strategic investments in technology, and government-backed digital transformation initiatives. These, in addition to the growing demand for advanced financial solutions, will make Abu Dhabi a significant hub for fintech and WealthTech innovation.

Future Market Scenario (2024 – 2031F)

Digital platforms will become some of the ways through which financial services can be made accessible to a more significant number of investors by offering highly personalized investment strategies and real-time analytics.

Innovation in a soundly evolving regulatory environment that protects investors fosters growth through clear guidelines and incentives that will continue to help the exploding wealth sector.

The advanced level of innovation and integration, with increased collaboration among financial institutions, fintech startups, and technology providers, will promote market growth in the forecast period.

Key Players Landscape and Outlook

The competitive scenario of UAE WealthTech solutions market keeps on changing dynamically with a wide array of participants such as established financial houses, innovative fintech startups, and international tech companies. Major key players in the industry are leveraging advanced technologies such as AI, ML, blockchain, and others, to differ in offering sophisticated investment solutions. Companies create personalized services and user-friendly platforms to improve customer experiences. Large investments and funding are more significantly attracting growth and technological improvement. In detail, traditional banks and financial technology startups are developing and collaborating for service offering expansion and innovation.

In 2023, Lunate, a global alternative investment management company, and BNY Mellon, the world's largest custodian and a leading firm in wealth management technology, announced an investment in a new company, Alpheya, which will engage in the development of a customized wealth management technology platform for wealth and asset managers in MENA. Headquartered in the Abu Dhabi Global Market, Alpheya will be capitalized with a USD 300 million capital commitment and is expected to begin serving clients in 2024.