Private Wealth In Middle East And Africa Is Expected To Grow By 6 Percent Per Year Until 2023
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A report issued by the global consulting firm Oliver Wyman and Deutsche Bank shows the total wealth of ‘millionaires’ exceeded $70 trillion in 2018, reports Al-Rai daily.

The private wealth in the Middle East and Africa is expected to grow by 6 percent per year until 2023, with Asia and the Pacific growing to 9 percent and in Latin America by 8 percent, compared to 4 percent in North America, and 3 percent in Western Europe.

The report said that these markets will provide wealth managers with the greatest opportunity to expand their client base and develop highly manageable assets over the coming years, stressing the importance of wealth managers taking advantage of growth opportunities in emerging markets, particularly in the Middle East.

Growth in the number of high net worth individuals in emerging markets will outperform developed markets by 2023, the report said, pointing out that Asia, the Pacific, Latin America, the Middle East and Eastern Europe are expected to account for more than half of global wealth growth over the next five years.

“To accommodate this growth, advanced market service will not be enough,” said Oliver Wassam, Partner and Head of Financial Services for the Middle East at Oliver Wyman.

Investors, according to the report, hope the global economy is on the right track to recovery this year after a slide earlier this month as the United States lifted tariffs on $200 billion of Chinese imports to 25 percent.

The report found that wealth management valuations fell more than 20 percent in 2018, while valuations in the banking sector were affected by the gap between wealth management and other banking businesses that continued to decline.

The report pointed out that the income squeeze faced by wealth managers by the end of last year highlights the continued weakness of operating models against market pressures. Nevertheless, the report noted that the market recovery earlier this year has led to some short-term relief, but more pressure is inevitable as the end of the economic cycle approaches

29 May, 2019 251
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