GCC wealth growth gives private banking robust opportunities

Since 2010, the GCC market has doubled its total private wealth from $1.1 trillion to $2.2 trillion for an overall compound annual growth rate (CAGR) of 17.5 per cent, making it an even more lucrative market for local and global private bankers, according to a study by management consultancy Strategy&. Most of the region’s private wealth resides in Saudi Arabia (44 per cent), but the UAE has made notable gains with its share of the GCC’s private wealth increasing from 24 per cent to 30 per cent from 2009 to 2013. Together, Saudi Arabia and the UAE control 74 per cent of the region’s private wealth, up from 71 per cent in 2009. The study reveals that geopolitical events also intensified the migration of new wealth to the region.

GCC significant repository of capital

According to the recently released “Global wealth management outlook 2014-15: New strategies for a changing industry” by Strategy&, the GCC has been the most consistent of the emerging markets, recording growth of 16 percent or more each year since 2010 and doubling total private wealth from $1.1 trillion to $2.2 trillion for an overall compound annual growth rate (CAGR) of 17.5 percent. The UAE led the GCC countries with 25 percent CAGR, followed by Oman (21 percent) and Bahrain (18 percent), which grew from much smaller bases. Not surprisingly, high-net-worth individuals (HNWIs) continue to account for the largest chunk of the region’s wealth at 41 percent.

GCC family businesses to increase women’s role

Family businesses in the GCC are looking to increase the number of women in senior management positions over the next decade to emulate the success of their global counterparts, says a new study. The joint study undertaken by Alsayedah Khadijah Bint Khawilid Center and Strategy& (formerly Booz & Company) investigates the role of women in family businesses across the region. However, the study reveals there are still major obstacles for women hoping to participate in family businesses, particularly cultural perceptions of a patriarchal society and fierce competition from family members.

Massive housing shortage expected in GCC

A rapid rise of young population in the GCC is causing a surge in demand for housing that could lead to a massive shortage. There could be a scarcity of more than one million units by 2018, reveals a study by management consultancy Strategy& (formerly Booz & Company), and governments need to pursue more holistic policies to better meet people’s housing needs. Governments should drive sustainable development, promote public-private partnerships, establish prudent real estate laws and facilitate greater access to housing finance to revitalise the sector, the study adds. GCC countries are currently experiencing a shortage of housing, particularly for their large and growing populations of low-income residents.

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