The new Avaloq wealth insights 2025 report shows that the United Arab Emirates (UAE) has a solid and growing position in digital assets, with investor affinity for crypto well above the global average. Yet many wealth managers say their systems are holding them back, risking client experience at scale for affluent, HNW and UHNW investors.
By Akash Anand, Regional Director, Head of Middle East and Africa, at Avaloq
Strong UAE investor appetite for crypto
According to the study, 39% of affluent to ultra‑high‑net‑worth UAE investors say they currently hold crypto assets, compared with a global average of 30%. The report analyses investor behaviour and wealth‑management practices across 15 markets, based on surveys of 3,851 investors and 456 wealth professionals conducted in February–March 2025.
Several factors may help explain the UAE’s momentum in digital assets:
- Policy initiatives to build a leading virtualasset hub, including innovation programmes in free zones such as DIFC
- A clear regulatory framework in Dubai via the Virtual Assets Regulatory Authority (VARA) since 2022
- A steady cadence of major crypto and Web3 conferences that attracts firms and talent to the country
A missed opportunity for wealth managers
While demand is strong, only 20% of UAE investors who hold crypto manage those positions through their traditional financial services provider. At the same time, 51% of noncrypto investors say they would invest in crypto if their traditional institution offered it, signalling a clear opportunity for banks and wealth managers to integrate digital assets into their offerings.
More investor education required
For UAE investors who do not hold crypto, top reasons include market volatility (38%), lack of knowledge (36%) and distrust in exchanges (32%). Rather than a roadblock, the knowledge gap is an opening for wealth managers to use their advisory strengths to explain how to safely integrate crypto into a portfolio in line with investors’ risk tolerance and growth ambitions.
High switching risk in a competitive market
Competition is fierce: 63% of UAE investors have either switched advisers in the past or are currently considering doing so. The top three drivers are high costs (51%), lack of transparency or unanswered questions (45%) and lack of trust (44%). To retain investor confidence and remain competitive, wealth managers must focus on streamlining operations to improve cost efficiency, ensuring timely communication and delivering personalized service at scale.
According to the Henley Private Wealth Migration Report 2025, global wealth migration is hitting record levels, with 142,000 millionaires projected to relocate in 2025 and 165,000 in 2026. The UAE is the top destination for incoming millionaires, reinforcing the strategic importance for local wealth managers to scale and deliver integrated traditional and digital investment solutions.
