Boston Consulting Group predicts robust 5.1% annual growth in the country’s wealth, underpinned by high-earning entrepreneurs and stable assets.
Qatar’s financial wealth is on an upward trajectory, projected to grow at an annual rate of 5.1% and hit $388 billion by 2027, according to a recent report by Boston Consulting Group (BCG).
Ultra-High Net Worth (UHNW) individuals, with assets exceeding $100 million, are expected to be the primary drivers behind the impressive growth.
“Qatar’s trajectory signifies strong economic growth and resilience in the face of global challenges, accounting for 4.1% of the region’s financial wealth in 2022,” stated Markus Massi, Managing Director and Senior Partner at BCG.
The report pointed to Qatar’s burgeoning entrepreneurial scene and calculated risk-taking as key factors in its remarkable financial ascension.
Approximately 38% of the country’s total wealth in 2022 was attributed to UHNW individuals. BCG forecasts this figure will increase to 40% by 2027.
Nimrod Pais, Managing Director and Partner at BCG, commented, “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.”
In terms of asset distribution, equities and investment funds constitute the largest class, making up 48% of total personal wealth in 2022. Moreover, life insurance and pensions are set to see the fastest growth, with a 7.1% compound annual growth rate predicted between 2022 and 2027.
On the other hand, real assets in Qatar have experienced a 0.8% annual decrease from 2017 to 2022, totalling $266 billion. These assets are projected to rebound, growing at 5.1% per year to reach $341 billion by 2027.
In a parallel trend, liabilities have grown by 1.3% per year during the same five-year period and are forecasted to grow by 2.6% annually, amounting to $38 billion by 2027.
“This balanced growth reflects a nation that takes calculated risks, contributing to overall economic growth,” the BCG report concluded.