WEALTH MANAGEMENT IN THE MIDDLE EAST SUMMARY BOON OR BUST?

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



Wealth management in the Middle East represents both a boon and a potential bust for local and international financial institutions. The future of wealth management in the Middle East will depend on whether policymakers and bankers can develop local wealth management services which grow local economies, and thus, increase the number and portfolios of affluent individuals. Policymakers will need to encourage local financial institutions to become more competitive by letting in foreign competition, changing banking and securities laws, and growing local companies whose share are worth buying. Foreign wealth managers need not fear the development of stronger local wealth management institutions and practices. They should use their bargaining power vis-à-vis Middle Eastern governments to make it easy to find and use locally-based wealth managers. They should also grow the market — by providing normal as well as private banking services. By offering higher rates of return to the affluent-to-be, these foreign wealth management firms can grow their market sizes and capture their share of the $800 billion already waiting for them.