GCC Wealth Management Defies Odds, Braces for Stellar 2024
In the recently released 13th edition of the Middle East Investment Panorama report by Insight Discovery, a leading research consultancy, a positive outlook for the wealth management industry in the GCC region has been highlighted. The report, delayed to incorporate findings from the Middle East Wealth Change event in Dubai, sheds light on the changes since the beginning of 2023.
According to Nigel Sillitoe, CEO of Insight Discovery, the figures in the report fully justify the optimism in the wealth management industry. Key players in the sector are acknowledged for their clear strategies to compete in an environment where clients are becoming increasingly knowledgeable. Emphasis is placed on attracting, retaining, and developing client-facing staff, with a regulatory environment supporting these efforts.
One trend highlighted in the report is the rise in the number of wealth management companies, indicating a broader array of choices for investors across the GCC region. The fundamental changes identified in the report suggest a dynamic landscape that prompted the delay in publication to incorporate insights from the MEWX event.
The MEIP report includes spotlights on wealth management and family offices in the GCC region, along with expert commentaries on investment in alternative assets and recent changes to the UAE’s regulations for End of Service Benefit payments.
Insight Discovery's survey of broadly defined investment advisers, conducted in the first half of 2023, also painted a positive picture. A majority of respondents (53 percent) reported business growth over the previous 12 months, and an even more optimistic 73 percent expected expansion in the coming 12 months, extending into early 2024.
The advisers' growing preference for alternative asset classes is attributed to factors such as increased access for retail investors, the growing attractiveness of GCC countries for private equity and venture capital opportunities, and the strong bias of institutional investors toward alternative assets.
Nigel Sillitoe expressed confidence that, after years of false starts and excessive hype, the GCC wealth management sector is ready for a prosperous year in 2024-25 and beyond. While challenges like demographic changes, stagnant asset pools, competition, and regulatory decisions exist, none seem evident in Dubai, Abu Dhabi, and other key centres across the region.
