Middle East private wealth to reach $7.2 trillion by 2018

Dubai: The private wealth in the Middle East region will reach USD 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 USD 7.2 trillion by the end of 2018, approximately a 3.6 percent share of total global wealth.

"The USD 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 percent holding private wealth of at least USD 1 million, the report said.

"On a regional level, the report said that private financial wealth grew by 11.6 percent to reach USD 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.