Bahrain Private Wealth to Reach $200 Billion

Overall growth of private wealth in Bahrain is expected to increase steadily to 4.5% compound annual growth rate and reach $200 billion over the next five years, a new report said.

 Equities, at 6.7% CAGR, and cash and deposits, at 3% CAGR, will be the primary contributors to this growth rate over the coming five-year period, added the study titled “Global Wealth 2017: Transforming the Client Experience” by The Boston Consulting Group, a global management consultancy, TradeArabia reported.

While private wealth growth in Bahrain witnessed slight growth in 2016 (3.9%), the amount of wealth held in equities increased to 5.8%, in comparison to cash and deposits at 3% and bonds at 1.6%, the report said.

The 17th annual study by BCG outlines the evolution of private wealth from both global and regional perspectives, addresses key industry trends, and places special emphasis on how players can create fresh and innovative client journeys by leveraging digital technology to its fullest in wealth management business and operating models.

Taking an in-depth look at wealth distribution, private wealth held by ultra-high-net-worth households (those with above $100 million) in Bahrain experienced robust growth—at 7.6%—in 2016. The growth experienced by this segment is expected to continue at a steady pace—9.8% CAGR through 2021.

The upper high-net-worth segment (those with between $20 million and $100 million) experienced very slight growth in 2016 at 0.6%. In the next five years, the projected growth of this segment will see a decrease to -1.1% CAGR.

In Bahrain, private wealth held by the lower HNW segment (those with between $1 million and $20 million) witnessed burgeoning growth of 6.1% in 2016. Private wealth in this segment has a projected CAGR of 7% over the next five years.

The total number of millionaire households (those with more than $1 million in net investable assets) in Bahrain increased by 1% CAGR in 2016. Looking ahead, growth is set to decline slightly at 0.4% CAGR by 2021.