DOHA: Private wealth in Qatar will rise from $0.3 trillion to $0.4 trillion by 2020, according to a new report by The Boston Consulting Group (BCG).
In the next five years, the growth of private wealth in Qatar will be driven primarily by equities (6 percent), followed by cash and deposits (3.2 percent) and bonds (1.8 percent), says the report ‘Global Wealth 2016: Navigating the New Client Landscape’, which was to be released on Tuesday.
Over the next five years, wealth in the Middle East and Africa region is set to reach $11.8 trillion ” and Saudi Arabia, the UAE, and Kuwait’s contribution will account for 22.7 percent of that sum.
In terms of wealth distribution, private wealth held by ultra-high-net-worth (UHNW) households (those with above $100 million) in Qatar is expected to grow by an impressive 14.5 percent in the next five years. Interestingly, by 2020, this specific segment will be witnessing the highest growth.
In Qatar, private wealth held by the upper high-net-worth (HNW) segment (those with between $20 million and $100 million) is projected to increase at a rate of 3.6 percent over the next five years.
In parallel, private wealth held by the lower HNW segment (those with between $1 million and $20 million) will go up by 5.3 percent.
The total number of millionaire households (those with more than $1 million in net investable assets) in Qatar is set to grow by 1 percent by 2020.
The findings of BCG’s report also revealed that, in 2015, for Middle East and Africa (MEA) wealth booked offshore, Switzerland (30 percent) was the destination of choice, followed by the UK (23 percent) and Dubai (18 percent).
This sixteenth annual study by BCG outlines the evolution of private wealth from both global and regional perspective, addresses key industry trends, and explores evolving client needs, particularly those of underserved, non-traditional segments such as female investors and millennials, whose investment goals are not necessarily well-addressed by the standard, net-worth-based service approach.
“Segmentation approaches based mainly on wealth level continue to be used by the majority of wealth managers, which neglect what clients are truly willing to pay for,” said Markus Massi, Partner & Managing Director of BCG Middle East’s Financial Services practice.”Such approaches no longer allow wealth managers to capitalise on the full potential of the market,” he added.
