Why 62% of UAE’s HNWIs distrust UAE banks: Key findings from Vault's study

Q: How many UAE HNW individuals distrust their banks?

62% of the high-net-worth respondents in Vault's survey said they do not trust banks and wealth-management firms in the UAE.

Q: What are the main reasons for the distrust?

Two factors dominate. 40% point to a lack of transparency around fees and the perception that those fees are driven by revenue targets rather than client interests. 50% cite the volume of scandals and fraud cases in the local financial sector.

Q: What is the most common mis-selling complaint?

52% of respondents reported being pressured to buy whole-of-life insurance products — Zurich Futura and MetLife Future Protect were the most frequently named — that were presented as investment vehicles. These are commission-rich products for the advisor and rarely the right fit for an HNW investor's actual needs.

Q: Do HNW investors prefer robo-advisors or human advisors?

90% of respondents said they prefer human advisors over robo-advisors. The value placed on personalised judgement and human relationships remains high even as digital tools improve.

Q: How do you avoid the mis-selling problem when choosing an advisor in the UAE?

Pick a fee-only fiduciary : an advisor whose only compensation is the fee you agree on, with no commissions, no product kick-backs, and no insurance-linked structures. Verify the regulator (FSRA in ADGM or DFSA in DIFC) and ask explicitly how the firm is paid — if the answer involves anything but your fee, walk away.

TL;DR

62% of UAE-based HNW individuals say they do not trust local banks and wealth-management firms, per Vault's survey of high-net-worth respondents.
Two drivers dominate: 40% cite opaque fees driven by revenue targets rather than client outcomes, and 50% cite the volume of fraud and mis-selling scandals in the UAE financial sector.
52% reported being pressured into whole-of-life insurance products (Zurich Futura, MetLife Future Protect, etc.) sold as investments — a classic commission-driven mis-sale.
Despite the rise of robo-advisors, 90% still prefer human advisors for wealth decisions — personalised judgement remains the deciding factor at the top of the wealth pyramid.
Trust is fragile but addressable: a fee-only, conflict-free fiduciary structure removes the commission incentive that drives most of the mis-selling.

Introduction

Over the past decade, the UAE has strategically positioned itself as the premier destination for high-net-worth individuals, earning the UAE the #1 spot globally for attracting millionaires for the past several years.

millionaire migration 2024

Source: Visual Capitalist

But what do most HNWIs have in common? - it’s their shared priority to minimize risk and safeguard assets—principles that significantly shape their investment strategies.

With projections suggesting a 150% increase in HNWIs in the UAE by 2040, Vault conducted a survey to better understand the perspectives of these affluent individuals regarding banks and wealth management services in the UAE.

Key Findings

1. Trust in UAE Banks and Wealth Management Firms

A staggering 62% of respondents said that they do not trust banks and wealth management companies in the UAE. Two primary factors underlie this hesitation: a lack of transparency around fees and charges, which 40% believe is driven by revenue goals rather than customer-centric motives, and a significant amount (50%) expressing concerns over prevalent scandals and fraud cases, which contribute to an overall sense of mistrust.

2. Mis-Selling Practices

The survey also highlighted the issue of mis-selling in the UAE financial sector. A notable 52% of respondents reported experiencing pressure to purchase whole of life insurance products, such as Zurich Futura and MetLife Future Protect, presented as investment opportunities. This trend appears driven by commission-based incentives for advisors, often leading to sales that prioritize advisor earnings over clients’ best interests.

3. Preference for Human Advisors Over Robo-Advisors

Despite the rise of technology-driven financial services, 90% of respondents expressed a strong preference for human advisors over robo-advisors. This finding underscores the value that HNWIs place on personalized advice and the human touch, which remains crucial even as digital solutions become more advanced.

Conclusion

Vault’s survey makes it clear: while HNWIs are drawn to the UAE for its economic stability and growth potential, trust in banks and wealth management firms remains fragile. This is where a good financial advisor can add immense value.

Frequently asked questions

How many UAE HNW individuals distrust their banks?

62% of the high-net-worth respondents in Vault's survey said they do not trust banks and wealth-management firms in the UAE.

What are the main reasons for the distrust?

Two factors dominate. 40% point to a lack of transparency around fees and the perception that those fees are driven by revenue targets rather than client interests. 50% cite the volume of scandals and fraud cases in the local financial sector.

What is the most common mis-selling complaint?

52% of respondents reported being pressured to buy whole-of-life insurance products — Zurich Futura and MetLife Future Protect were the most frequently named — that were presented as investment vehicles. These are commission-rich products for the advisor and rarely the right fit for an HNW investor's actual needs.

Do HNW investors prefer robo-advisors or human advisors?

90% of respondents said they prefer human advisors over robo-advisors. The value placed on personalised judgement and human relationships remains high even as digital tools improve.

How do you avoid the mis-selling problem when choosing an advisor in the UAE?

Pick a fee-only fiduciary: an advisor whose only compensation is the fee you agree on, with no commissions, no product kick-backs, and no insurance-linked structures. Verify the regulator (FSRA in ADGM or DFSA in DIFC) and ask explicitly how the firm is paid — if the answer involves anything but your fee, walk away.