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Wealth in Saudi Arabia: HNW Customers

  • Executive Summary
    • Saudi Arabia's sizable HNW business owner community represents a lucrative target market
    • Key findings
    • Critical success factors
  • Profiling the Saudi HNW Consumer
    • Most HNW individuals have accumulated their fortunes through family business ownership
      • Many HNW individuals have built their fortunes through financial services
    • Expats represent a minor target group in Saudi Arabia
      • The majority of HNW expats stem from fellow Middle Eastern countries and the US
  • Understanding Asset Allocation Trends Among Saudi HNW Individuals
    • Saudi HNW investors are significantly exposed to equity risk
      • Below average fund holdings will grow as the market develops
      • Saudi HNW individuals express strong interest in direct equity and direct property holdings
      • Saudi HNW demand is forecast to rise most for equities, property, and alternatives
  • Product and Service Demand Among Saudi HNW Individuals
    • Asset management services
      • Demand is strongest for discretionary asset management among Saudi HNW individuals
      • Demand for discretionary investment services will increase significantly
    • Planning services
      • With the exception of financial planning, demand for auxiliary services is muted
      • Demand for all auxiliary services is forecast to rise, with financial planning taking the lead
    • Credit products
      • Strong capital appreciation opportunities continue to support demand for mortgages
      • Already strong HNW demand for credit is forecast to rise
    • Niche services
      • Art advisory and philanthropy services are still niche in Saudi Arabia
      • Demand for niche services will not change
  • Customer Acquisition and Communication
    • Client acquisition
      • The importance of a relationship manager's own contacts in the client acquisition process poses a challenges to wealth managers
    • Client communication
      • Face-to-face communication is critical in Saudi Arabia
      • The vast majority of wealth managers do not have a social media strategy in place
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Affluent
      • Mass affluent
      • HNW
      • Liquid assets
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
    • Bibliography
    • Further reading

Wealth in Saudi Arabia: HNW Customers

Summary

Part of a two-part series, Wealth in Saudi Arabia: HNW Customers analyzes the profile of Saudi HNW individuals, from their investments to product demand to sources of wealth. This report is based on our 2014 Global Wealth Managers Survey. The results of the survey are accompanied by best-practice case studies on how to target Saudi HNW individuals where applicable.

Synopsis

  • Understand the major sources of HNW wealth in Saudi Arabia and the industries from which it has been amassed.
  • Interpret the investment portfolios of Saudi HNW individuals through detailed asset allocation analysis.
  • Evaluate product and service demand among Saudi HNW individuals, from discretionary asset management to art advisory and philanthropy services.
  • Analyze the best methods to capture new Saudi HNW clients and how best to maintain communication throughout the client relationship.
Reasons To Buy
  • How do Saudi HNW individuals amass their wealth?
  • What investments make up an average Saudi HNW investment portfolio?
  • Which wealth management products and services are in demand in Saudi Arabia?
  • How often do Saudi wealth managers contact their clients through email, social media, and face-to-face meetings?
  • How do Saudi HNW individuals compare to their global peers?
Key Highlights

A relationship manager’s own contacts are crucial in the client acquisition process. Brand-building efforts such as loyalty programs and client events are crucial if wealth managers are to avoid losing clients when a relationship manager moves on.

HNW entrepreneurs’ business and personal finances are often intertwined, and wealth managers need to be able to address both. Wealth managers lacking the necessary expertise should consider partnerships.

In Saudi Arabia business is done with friends. Building relationships takes time, and regular face-to-face meetings are expected. Although digital channels help reduce costs they should be regarded as an addition to more direct channels, not a substitute.


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