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Private Wealth in MEA to Reach $11.8t

Private Wealth in MEA to Reach $11.8tPrivate Wealth in MEA to Reach $11.8t

By 2020, private wealth in Oman will rise from $0.3 trillion to $0.4 trillion, according to a new report by The Boston Consulting Group.

In the next five years, the growth of private wealth in Oman will be driven primarily by equities (5.8%), followed by cash and deposits (4.1%) and bonds (2.2%), said the report titled Global Wealth 2016: Navigating the New Client Landscape, TradeArabia reported.

This sixteenth annual study by BCG outlines the evolution of private wealth from both a global and regional perspective, addresses key industry trends, and explores evolving client needs—particularly those of underserved, non-traditional segments such as female investors and millennial, whose investment goals are not necessarily well-addressed by the standard, net-worth-based service approach.

Over the next five years, wealth in the Middle East and Africa region is set to reach $11.8 trillion—and Saudi Arabia, the UAE, and Kuwait’s contribution will account for 22.7% of that sum, according to the report.

Meanwhile, private wealth of ultra-high-net-worth households in Qatar is projected to grow by a staggering 14.5% to reach about $0.5 trillion by 2020, mainly driven by equities, deposits and bonds, the report said.

“Private wealth held by UHNW households (those with above $100 million) in Qatar is expected to grow by an impressive 14.5% in the next five years.

Private wealth held by the upper high-net-worth segment (those with between $20 million and $100 million) is projected to increase at the rate of 3.6% over the next five years, it said, adding private wealth held by the lower HNW segment (those with between $1 million and $20 million) will go up 5.3%.

In terms of wealth distribution, private wealth held by UHNW households (those with above $100 million) in Oman is expected to grow by 7.2% in the next five years.

In addition, by 2020, private wealth held by the upper high-net-worth segment (those with between $20 million and $100 million) is projected to increase at a rate of 8.8%. Interestingly, over the next five years, this specific segment will be witnessing the highest growth.

In parallel, private wealth held by the lower HNW segment (those with between $1 million and $20 million) will go up by 8.6%.

And lastly, looking ahead, the total number of millionaire households (those with more than $1 million in net investable assets) in Oman is set to grow by 2.1% by 2020.

The findings of BCG’s report also revealed that, in 2015, for Middle East and Africa wealth booked offshore, Switzerland (30%) was the destination of choice, followed by the UK (23%) and Dubai (18%).

 

Financialtribune.com