Wealth Management in the Middle East 2009

Published by: Datamonitor

Published: Apr. 7, 2009 - 9 Pages

Table of Contents

Overview

Catalyst

Summary

Methodology

Executive Summary

Datamonitor's Wealth Management Opportunity Index gauges the relative attractiveness of wealth markets

The UAE represents the greatest opportunity of any Middle Eastern wealth management market

Qatar has experienced phenomenal growth and has positioned itself well as an international business center

Bahrain has experienced steady economic growth and is set to strengthen its position as a wealth management center in the Middle East

Table of Contents

Table of figures

Table of tables

DATAMONITOR'S WEALTH MANAGEMENT OPPORTUNITY INDEX

Datamonitor's Wealth Management Opportunity Index is a valuable tool for assessing the relative attractiveness of wealth markets

Institutional and economic variables, along with market size and features are key measures of wealth management market attractiveness

There are five key parameters when assessing a market for its wealth management potential

There are 18 components to the five key parameters of the wealth management opportunity index

Institutional factors

Economic variables

Wealth management market size

Wealth management market features

Wealth management client characteristics

Datamonitor ranks the UAE, Qatar and Bahrain as the top three Middle Eastern wealth markets

MARKET OVERVIEW

UAE

UAE represents the greatest opportunity of any Middle Eastern wealth management market

The doors are wide open to new entrants and the market is increasingly demanding high quality service

Range of products and services: 1

Level of consolidation: 3

Ease of market entry: 5

Level of international wealth management activity in country: 3

Level of use of onshore services: 0

Level of demand for high quality service: 2

A number of leading international private banks are active in the UAE

Julius Baer was the first international private bank licensed to operate in the DIFC

Standard Chartered opened its first branch in the UAE in 1958

Credit Suisse has had a dedicated wealth management office in Dubai since 2005

UBS offers a range of Islamic finance products and services alongside its more traditional wealth offerings

SG Private Banking has its Middle East regional office based in the DIFC

HSBC is the largest and most widely represented bank in the Middle East

There were 360,000 affluent individuals, with onshore liquid wealth of $76,764 million in the UAE in 2008

QATAR

Qatar is the world's wealthiest country per capita and offers great potential to international wealth management firms

Qatar has experienced phenomenal growth and has positioned itself well as an international business center

NYSE Euronext has bought a stake in Qatar's stock exchange, increasing Doha's chances of being a viable alternative to Dubai as the region's securities hub

Qatar welcomes new business and its residents increasingly desire a sophisticated service, both of which are encouraging to international wealth managers

Range of products and services: 1

Level of consolidation: 2

Ease of market entry: 3

Level of international wealth management activity in country: 2

Level of use of onshore services: 2

Level of demand for high quality service: 2

The QNB continues to be the largest wealth manager in Qatar with international players more limited in the private banking services that they provide

QNB was established in 1964 as the country's first Qatari-owned commercial bank

HSBC Wealth Management offers a significant Sharia product range in Qatar

HSBC offers a wide range of products and services to its Qatari customers

HSBC offers a full range of Sharia wealth management products and services

Business confidence index

Standard Chartered has had a presence in Qatar for over five decades

Coutts is an international player new to Qatar

UBS has only just launched a wealth management operation in Qatar, although has been present in the Middle East since 1964

There were 97,000 affluent individuals, with onshore liquid wealth of $19,801 million in Qatar in 2008

BAHRAIN

Bahrain is eager to recapture a more dominant position as a Middle East wealth management center

Bahrain has experienced steady economic growth and is set to strengthen its position as a wealth management center in the Middle East

Bahrain is eager to recapture a more dominant position as a wealth management center in the Middle East

Range of products and services: 3

Level of consolidation: 2

Ease of market entry: 3

Level of international wealth management activity in country: 2

Level of use of onshore services: 1

Level of demand for high quality service: 2

Bahrain's regulatory environment makes it an attractive destination for international private banks

Standard Chartered opened its first office in Bahrain in 1920

Deutsche Bank has had a presence in Bahrain for over 30 years

There were 57,000 affluent individuals, with onshore liquid wealth of $11,479 million in Bahrain in 2008

OVERVIEW: KUWAIT, SAUDI ARABIA AND OMAN

APPENDIX

The drivers of growth in the wealthy population

Income growth (combined with inflation, changes in GDP by sector, household savings rates and debt levels)

Investment returns (market capitalization, interest rates and bond yields)

The following measures are not, in themselves, drivers of wealthy population growth

Market capitalization

GDP

The following measures are not drivers of wealthy population growth except under very restricted circumstances

Primary residence value growth

Inheritance

Methodology

Global Wealth Model

The UK sub model

Global sub model (for all other countries)

Forecasting methodology

Continuous refinement to the understanding of liquid wealth distribution

Datamonitor's wealth numbers compared with other wealth numbers

Bibliography

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Wealth management opportunities rankings of Middle East countries

Table 2: Datamonitor's Wealth Management Opportunity Index - Middle East and Switzerland

Table 3: Datamonitor's Wealth Management Opportunity Index with values - Middle East and Switzerland

Table 4: Total number of affluent individuals (000) in the Middle East, by country, 2004-2013

Table 5: Total number of affluent individuals as a % of adult population, by country, 2004-2013

Table 6: Total number of affluent individuals as a % of total population, by country, 2004-2013

Table 7: Total aggregate liquid assets of affluent individuals, $bn, 2004-2013

Table 8: Total aggregate liquid assets of affluent individuals as a % of total savings and investments, 2004-2013

Table 9: Wealth management opportunity index: UAE

Table 10: List of foreign banks and their number of branches

Table 11: Commercial banking leads the way in terms of segment profitability for HSBC ME, 2007

Table 12: Number of affluent individuals in the UAE, 000, 2004-2013

Table 13: Aggregate onshore liquid wealth in the UAE, $m, 2004-2013

Table 14: Wealth management opportunity index: Qatar

Table 15: HSBC's wealth management offering is built around a portfolio planner

Table 16: Number of affluent individuals in Qatar, 000, 2004-2013

Table 17: Aggregate onshore liquid wealth in Qatar, $m, 2004-2013

Table 18: Wealth management opportunity index: Bahrain

Table 19: Improved oil prices both hinder and benefit the Bahraini economy

Table 20: Number of affluent individuals in Bahrain, 000, 2004-2013

Table 21: Aggregate onshore liquid wealth in Bahrain, $m, 2004-2013

Table 22: Number of affluent individuals in Kuwait, 000, 2004-2013

Table 23: Aggregate onshore liquid wealth in Kuwait, $m, 2004-2008

Table 24: Wealth management opportunity index: Kuwait

Table 25: Number of affluent individuals in Saudi Arabia, 000, 2004-2008

Table 26: Aggregate onshore liquid wealth in Saudi Arabia, $m, 2004-2008

Table 27: Wealth management opportunity index: Saudi Arabia

Table 28: Number of affluent individuals in Oman, 000, 2004-2008

Table 29: Aggregate onshore liquid wealth in Oman, $m, 2004-2013

Table 30: Wealth management opportunity index: Oman

List of Figures

Figure 1: Datamonitor's Wealth Management Opportunity Index

Figure 2: There may be some missed opportunities on the part of HSBC's wealth management business in the Middle East

Figure 3: HSBC Qatar has established its own Sharia-compliant division, HSBC Amanah

Abstract

• Market data: Number of affluent individuals and aggregate onshore liquid assets for 2004-13.
• Market data covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE.
• 5-10 Competitor profiles for each of the 3 most attractive markets for foreign wealth managers.
• Datamonitor's Wealth Market Opportunity Index.

• See how the affluent populations grow or decline in the next five years.
• Understand the competitive landscape in the most attractive markets.
• Identify the products and services that wealth managers are using to attract the GCC's affluent customers.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.