West Asian private wealth to reach $7.2 trillion by 2018

The region would account for 3.6% share in global private wealth by that year

The private wealth in the Middle East region will reach $7.2 trillion by the end of 2018, according to a report.

The report issued by Boston Consulting Group (BCG) estimates that private wealth in the region will reach $7.2 trillion by the end of 2018, approximately a 3.6 per cent share of total global wealth.

"The $7.2 trillion projected wealth needs the consultancy of wealth management companies in financial planning, investment portfolio management and other essential financial services," Hafeez Abdullah, Chairman of The H Holding Enterprise said.

UAE ranks 12th globally in the proportion of millionaire households, with 3.3 per cent holding private wealth of at least $1 million, the report said.
 

"On a regional level, the report said that private financial wealth grew by 11.6 per cent to reach $5.2 trillion in 2013. This poses lots of challenges for high net worth individuals (HNWIs) in maintaining their wealth or growing it further with the least possible risk," Hafeez said.

"It is high time that HNWIs sought advice from specialists on a consistent basis to manage their investments, be it equities, bonds or even cash and deposits. There is a strong need for wealth managers and financial planners who can develop wealth management strategies," Abdullah said.

Private wealth management services delivered to high-net-worth investors include advice on the use of various estate planning vehicles, business-succession or stock option planning, and occasional use of hedging derivatives for large blocks of stock.

"With the rise in the number of affluent investors in recent years, there has been an increasing demand for sophisticated financial solutions, including the Gulf," he said.

Wealth management can be provided by large corporate entities, independent financial advisers or multi-licensed portfolio managers who design services to focus on high-net-worth clients.