BaNk NotEStag thIS
Kuwait, Qatar and UAE emerged as ouro the top ten countries in the worldwith the highest density o ultra-wealthyhouseholds. The ndings appear inBCG’s eleventh annual Global Wealthreport titled Shaping a New Tomorrow:How to Capitalise on the Momentumo Change, which was released recentlyin the Middle East. Another interesting actor that was re- vealed in the report was the lack o a properbusiness model or wealth managers andprivate banks to ocus on these high networth individuals (HNWI).“Local wealth managers are currentlyorientating their wealth management o-erings towards the mass auent segment,but are missing out on the high net worthsegment. Local Qatari banks should con-sider building business models – with therequired skills, products, services – to beable to address these clients,” says DouglasBeal, Managing Director BCG Middle East.
tries to nd out whatis lacking in the wealth managementdomain and also gets insights rom expertson global investment trends.
High on wealth
Low on risk
According to the study, ultra-high-net-worth (UHNW) households, dened asthose with more than $100 million in As-sets under Management (AuM), were mosthighly concentrated in Saudi Arabia regis-tering 18 per 100,000 households. This wasollowed by Switzerland (10), Hong Kong(9), Kuwait (8), Austria (8), Norway (7), Qa-tar (6), Denmark (5), Singapore (5) and theUAE (5).Making it to the top ten list in terms o thehighest proportion o millionaire house-holds were Qatar–8.9% , Kuwait–8.5% andUAE–2.6%. Singapore and Switzerland arethe highest with Qatar taking the third po-sition.Positive trends also emerged orMiddle East and Arica overall, as AuMrose by 8.6% to hit $4.5 trillion in 2010 andwith expectations to reach $6.7 trillionby 2015.This was not the least surprising saysBeal. “Given the demographics and overallwealth o these petroleum-rich countrieswe would expect a higher proportion o UHNW households than in other parts o the world. Growth in AuM also reects thestrong undamentals o the region, drivenby continuing strong petroleum prices.”“Nevertheless, the risk appetite o re-gional investors remains low, especiallywhen compared to levels seen beore thedownturn. The asset allocation o GCChigh net worth individuals remains over-weight in cash and capital-protectedproducts.”“During these times the global marketsoscillate rapidly between risk taking andrisk aversion, reected not only in thedemand and supply, and thus valuationo certain asset classes, but also in capitalows,” says Heinrich Weber, Head GenevaBranch and Desk-head Private BankingMiddle East, Falcon Private Bank Ltd, aSwiss private bank specialised in wealthmanagement or private clients, wealthyamilies and institutional investors.“During such periods wealth will be de-
Global Wealth ManaGeMent:
an opportunity unexplored
EvEN aS World markEtS gEt lESS FrIENdly, coNFlIctS mark thE rEgIoN aNd INvEStorS rEmaINovEr-cautIouS thE WEalthy gEt WEalthIEr. gloBally, WEalth clImBEd to a rEcord Qr443.35trIllIoN ($121.8 trIllIoN), aBout Qr72.8 trIllIoN ($20 trIllIoN) aBovE WhErE It Stood tWo yEarSago durINg thE dEpthS oF thE FINaNcIal crISIS accordINg to thE rEcENt rEport By BoStoNcoNSultINg group (Bcg).