Product Code: WI0018FR
The wealth management sector in the Middle East is dynamic and complex, with significant growth in regionally made millionaires and billionaires, and wealthy expatriates. The HNWI population in the Gulf Cooperation Council (GCC) market at a CAGR of 8.08% from 136,195 in 2010 to 185,816 in 2014, and is projected to grow by a CAGR of 4.1% between 2015 and 2019. Middle Eastern HNWIs and UHNWIs' complex needs, family values, together with cultural differences brought by wealthy expatriates have become attractive to international private banks and domestic wealth management firms, leading to the development of sophisticated products and services. The UAE, Saudi Arabia, Kuwait and Qatar are the four main countries in the Gulf region where international private banks have expanded their operations and partnered with local firms. Nevertheless, both types of provider are competing with each other to gain market share through product differentiation, and by building robust strategies to target Middle Eastern HNWIs and UHNWIs, and wealthy expatriates. It is therefore becoming increasingly important for international and domestic wealth managers and private banks to be aware of the latest market trends and also understand Middle Eastern HNWIs and UHNWIs' complex needs.
The report covers the following areas:
- Attitudes of wealth mangers and private banks to targeting Middle Eastern HNWIs and UHNWIs.
- A snapshot of the Middle Eastern HNWI and UHNWI markets, including market size, and key forecast markets trends, drivers and barriers of the wealthy Middle Eastern market, and key regulatory issues.
- The markets covered include the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain.
- Key financial product and service offerings in the Middle East, and the role of family offices in managing wealth of Middle Eastern HNWIs and UHNWIs.
- Understand the complex needs of Middle Eastern HNWIs and UHNWIs, and know how best to target them.
- Make robust decisions in key areas such as expansion strategy, client strategy and marketing strategy to target Middle Eastern HNWIs and UHNWIs more effectively.
- Be informed about key market trends in financial product and service offerings in the GCC countries, and address each trend accordingly.
- Be aware of the attitudes of wealth managers and private bankers to the outlook for business strategies to target Middle Eastern HNWIs and UHNWIs.
- The HNWI population in the GCC market grew at a CAGR of 8.08% from 136,195 in 2010 to 185,816 in 2014 and is projected to grow at a CAGR of 4.1% over the forecast period.
- While the UHNWI market is smaller, it projected to grow at a similar CAGR of 4.57% from 2015 to 2019.
- Middle Eastern HNWIs and UHNWIs prefer to invest in property, bonds and private equity.
- Partnering with luxury brand is a new strategy for international private banks to gain market share in the Middle East.
- A market gap in Sharia-compliant products offers opportunities for wealth management service providers.
Table of Contents
- 1.1. What is this Report About?
- 1.2. Definitions and Scope
2. Executive Summary
3. Attitudes of Wealth Managers and Private Banks to Targeting Middle Eastern HNWIs and UHNWIs
4. Snapshot of the Middle Eastern HNWI and UHNWI Markets
- 4.1. A Comparison of Business Strategies for Targeting HNWIs and UHNWIs in the Middle East
- 4.2. The Gulf's HNWIs and UHNWIs Market Size and Key Market Trends
- 4.3. HNWI and UHNWI Demographic Trends
- 4.4. Drivers and Barriers of the HNWI and UHNWI Markets
- 4.4.1. Drivers
- 4.4.2. Barriers
- 4.5. Key Regulatory Issues
5. Middle East Markets: the UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain
- 5.1. Financial Products and Services Offerings
- 5.1.1. The UAE
- 5.1.2. Saudi Arabia
- 5.1.3. Kuwait
- 5.1.4. Qatar
- 5.1.5. Oman
- 5.1.6. Bahrain
- 5.2. The Role of Family Office: Managing Wealth of HNWIs and UHNWIs
- 5.3. Business Strategies for Targeting HNWIs and UHNWIs
- 5.3.1. Expansion strategy
- 5.3.2. Client strategy
- 5.3.3. Marketing strategy
6. About WealthInsight
List of Tables
- Table 1: HNWI Wealth Band and Group Definitions
- Table 2: Needs of Middle Eastern UHNWIs in Private Banking and Wealth Management
- Table 3: Preference of Middle Eastern and African HNWIs in Philanthropic Activities by Cause (%), 2013
- Table 4: Competitive Benchmarking for the Wealth Management Sector in Key Middle Eastern Markets
- Table 5: Key Parameters for the Wealth Management Sector in GCC Markets
- Table 6: Overview of Strategies to Target HNWIs in the Middle East
- Table 7: HNWI Populations in the Middle East, 2010-2019
- Table 8: HNWI Wealth in the Middle East (US$ Billion), 2010-2019
- Table 9: UHNWI Market Size in the Middle East, 2010-2019
- Table 10: UHNWI Wealth in the Middle East (US$ Billion), 2010-2019
- Table 11:Top 10 HNWI Families in the Middle East by Wealth (US$ Billion), 2014
- Table 12: Business Formation Options for International Financial Services Operators
- Table 13: Domestic Banks in UAE and their Main Product and Service Offerings
- Table 14: Domestic Banks in Saudi Arabia and their Main Product and Service Offerings
- Table 15: Domestic Banks in Kuwait and their Main Product and Service Offerings
- Table 16: Domestic banks in Qatar and their Main Product and Service Offerings
- Table 17: Domestic banks in Oman and their Main Product and Service Offerings
- Table 18: Domestic banks in Bahrain and their Main Product and Service Offerings
- Table 19: Family Offices in the Middle East
- Table 20: Major Acquisitions in the Middle East, 2012-2014
- Table 21: Key Domestic Islamic Banks in the Middle East
- Table 22: Examples of International Banks Adopting Islamic Principles
- Table 23: Wealth Management Services for Family Businesses in the Middle East
- Table 24: Internet Users in the Middle East, 2014
List of Figures
- Figure 1: HNWI and UHNWI Populations, 2014
- Figure 2: HNWI Populations by Age Group, 2014
- Figure 3:HNWI Population by Gender, 2014
- Figure 4: HNWI Populations by Primary Source of Wealth (%), 2014
- Figure 5: HNWI Populations by Industry Concentration (%), 2014