GCC Wealth Management

Executive Summary

Wealth management has undergone a significant change since the onset of the financial crisis. GCC region’s Ultra high net worth and High Net Worth investors have traditionally booked much of their investments outside the region in order to diversify. They are assisted by wealth managers registered in the traditional financial centers of Geneva, Switzerland and London. Private banking is the name of the game when it comes to dealing with UHNWIs of the region and the expectations about performance fees charged has also changed since the financial crisis.

The GCC wealth management industry is largely fragmented and clients usually have more bargaining power (more wealth the client has the higher the bargaining power of a client is and vice-versa). Wealth management providers strive to showcase innovative products that cater to their clients growing needs. Investment strategies and returns are scrutinized more deeply by the clients. Since most of the GCC HNWIs are reaching their twilight years the need for estate planning and succession planning are on the rise, which creates both opportunities and threats for wealth managers. Technology has been a great enabler in empowering HNWIs and UHNWIs while dealing with private wealth managers. Overall, the GCC wealth management industry is constantly evolving. Following the financial crisis, putting the client`s need on the forefront and matching client’s risk tolerance with investment products has achieved increased prominence.

This report talks about the usage and penetration of various wealth and its origins in the GCC region, the asset allocation, succession planning and more recently, the spread of Single Family Offices (SFOs). Wealth estimates have also been provided for all countries in the GCC for 2020 in the report. The report also talks about the broad trends that is expected to have a big impact globally as well as in the GCC region. Lastly the report looks into the impact of technology on the financial landscape of the GCC region.