WEALTH IN THE MIDDLE EAST

http://www.mei.edu/content/wealth-management-industry-middle-east-boon-or-bust


Introduction
Saudi Prince al-Waleed bin Talal al-Saud has a net worth of $20 billion. Such wealth places him first on the Forbes’ 2011 list of World's Billionaires for the Middle East region. Who manages the Prince’s money? The Prince does. The rich tend to rely on the “balanced portfolio, 401(k) and insurance” wealth management firms less and less. The Middle East’s wealthy number less in headcounts and hold more in assets. Such a concentration of wealth has made them a very attractive target for wealth management firms. The Middle Eastern affluent, rich and super-rich also tend to hold their money abroad, invest most in hard assets (like real estate and commodities) and make large- scale personal investments in foreign companies — making them a very coveted target for the likes of UBS and Merrill Lynch. Yet, the present cherry-picking model of customer acquisition will reach its limits — as the wealth spreads out and Middle Eastern banks learn how to offer Western-style wealth management services.