Private wealth in the UAE has grown at the fastest pace among Arabian Gulf states in the past four years, mainly due the global rebound in equities and partly thanks to GCC-specific drivers, particularly the impact of high oil prices during that period, as well as increasing government spending on mega-projects, infrastructure, further economic diversification and job creation, according to special data presented in the report.
Private banks have been boosting their businesses in this part of the world to take advantage of the growing wealth. In the past few years a number of private banks including Swissquote and La Cloche Wealth Management have set up in the Dubai International Financial Centre. Falcon Private Bank, a Swiss money manager owned by Abu Dhabi, has been beefing up its capabilities locally while shutting offices in Hong Kong to focus on the super-rich in the Middle East, Africa and eastern Europe. Emirates Investment Bank, a UAE private bank, has seen its assets under management more than double in the past two years. Banks working in the UAE’s private wealth sector have become more focused on providing high-end family office services, especially that of business succession planning.
A key issue facing the wealth management market within the region is the fact that countries within the UAE are relatively new to the tradition of inheritance. The report highlights that while many Europeans are familiar with the concept of inheriting over different generations, a considerable amount of the wealth in the UAE remains in the hands of the first generation.
Due to the fact that many private banks are just entering into this space, many HNWIs in the UAE are working with family offices and private trust to provide them with popular business succession structures. As legacy planning and succession is becoming an important concern for the region’s first generation wealthy individuals and families, global regulations and compliance requirements are posing new challenges.
The report is completed by two surveys: The first survey interviews 100 HNWI throughout The UAE to learn their needs, their changes, and how they view wealth management in The UAE. The second survey interviews 5 major banks in The UAE to learn about emerging trends in wealth management in The UAE and the country’s competitive landscape.
The report also benchmarks all the key private banks in the UAE, from best to worst that are based on: level of customer service, product diversity, business planning ability, skills and training of executives and relationship managers, and much more.
The banks that are evaluated and included in the report are the following:
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Arab Bank, Bank of Sharjah, Citibank UAE, Commercial Bank International, Dubai Islamic Bank, Emirates NBD, Finance House, First Gulf Bank, HSBC Bank Middle East Limited, Barclays, Old Mutual, Swissquote Bank, Falcon Private Bank, Qatar First Bank, Mashreq Bank, Zurich International, Mondial Dubai, Globaleye, Acuma, Holborn Assets, Abu Dhabi Fiance, IP Global, Arbuthnot Latham, Centaur Asset Management, SHUAA Asset Management, Killik & Co, Pictet, DBS Bank, Standard Chartered, Lombard Odier, National Bank of Abu Dhabi (NBAD), ABN Amro, Noor Bank