High net worth individuals (HNWIs) in the UAE are taking an increasingly active role in managing their finances, with 76 per cent citing investments as the most popular use of wealth, compared to 54 per cent in the region, a report said.

HNWIs are creating a major growth opportunity for stable funds and have maintained their confidence in financial products, added the  Barclays recent report titled: Origins and Legacy: The Changing Order of Wealth Creation, which provides an in-depth study into how wealth is now being made, spent and shared across the world.

This 17th volume of Barclays Wealth Insights investigates how the global landscape of wealth is changing, and how wealthy individuals plan for their legacy and philanthropy.

Rory Gilbert, managing director and Head of Wealth and Investment Management, Barclays, Mena, said, “HNWIs in the UAE are most optimistic in the world about how quickly wealth can be created as compared to the rest of the world, this could be a reason why the respondents from the UAE are also playing the most active role in managing their own finances.

“Once wealth has been created, UAE respondents are most likely to save or invest their wealth for growth opportunities, to be used for their future generations as opposed to short-term tangible gratification for themselves.”

High net worth individuals (HNWIs) in the UAE believe that accumulation of their wealth has been a rapid process. The report highlights that a high tolerance for risk is a prerequisite for successful entrepreneurship.

Wealthy entrepreneurs have a higher risk tolerance than those who have acquired their wealth through inheritance, earnings or bonuses. But this appetite for risk must go hand in hand with an acceptance of volatility. Entrepreneurs and business owners are of the view that their wealth has fluctuated a great deal over time and most of the wealth creation has been a rapid process.

The rise of entrepreneurial wealth and the shifting centre of economic power have profound consequences for the way in which wealthy individuals plan for the future and think about a legacy for their wealth.

As inherited wealth declines and as fortunes are made at a more rapid rate than ever before, the challenges facing newly wealthy individuals and families around planning for the future become more pressing and acute, the report.

As wealth rises and fortunes are made at a more rapid rate than ever before, the report explores how the challenges facing newly wealthy individuals - and families that need to plan for the future - have become more acute. – TradeArabia News Service