Private Wealth and Asset Management in the Middle East and the role of Abu Dhabi Global Market
The last decade has confirmed the region’s position as a financial center, as well as, a trading hub connecting the West, East, developed and emerging worlds. The oil and gas financial boom has created several sovereign wealth funds and a vast amount of wealth for individuals and family groups.
The total wealth pool in the region today amounts to approximately US$5.2 trillion and local Sovereign Wealth Funds (SWFs) together sum up to 50 percent of this wealth. The remaining wealth is split between other institutional investors such as local pension funds, as well as, mass affluent investors and Ultra High Net Worth Individual (UHNWI) investors in the non-professional segment. The increase in local wealth results from global capital markets growth, as well as, the strong growth of GDPs in the region. International along with local asset managers have recognized the importance of the region in terms of potential asset collection and have started to increase their local activities over the past decade. Strong interest and vast potential necessitated several countries in the region to take actions in order to capture this interest and support the growth of the private wealth and asset management sectors. United Arab Emirates is one of the countries that has taken a holistic approach and committed to putting the necessary regulation and infrastructure in place to have a prosperous private wealth and asset management industry.
Performance magazine issue 20, January 2016
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.