The global economic crisis of 2008 significantly decreased client trust in wealth management firms. This resulted in a shift towards safer products such as fixed income securities and other personalized services. However, the mass affluent offer high growth opportunities for the wealth management industry. The Middle East & Africa region is expected to see 9.5% average annual growth in millionaire wealth through 2018. The wealth management industry in MENA region is poised for growth at an estimated CAGR of XX.X% over the period from 2016 to 2021. The projected market value of the wealth management sector is USD XXXX.XX million, by 2021.
MENA region has cities like Dubai, Riyadh, etc., where some of the richest people in the world reside, with most of them coming under UHNW (Ultra High Net Worth) category. This has been one of the biggest driving factors of wealth management industry in the region. Moreover, with the fall in oil prices most of the HNW and UHNW people, who were dependent on oil, started looking for other sectors, bonds, equities, mutual funds, etc., to invest in. High competition in the sector is a major driver. Private banks, independent broker-dealers (IBD’s), wirehouses, independent advisors, etc., are all putting in their best efforts in customer acquisition strategies.
Restraints and Challenges
A new company will find it difficult to join the wealth management industry in MENA region as trust is a major issue. People in the region want best services and are willing to pay more if they trust the service of the company. Local players have an advantage in their deep knowledge of the local client base. Firms are opting for new operational models to compete effectively in the changing scenario and recover their losses, instead of using traditional methods of wealth management. Some people fear that the situation in the future will be same as the one in 2008 and are satisfied with keeping their money in banks rather than risking it anywhere else.
The fall in oil prices has brought a lot of opportunities to the market as many people in the HNW and UHNW segment need to look for other options. The margins in wealth management are good in the region, and this helps private banks build more corporate connections. Hence, many banks are putting more manpower into the wealth management division. Moreover, a large chunk of the millionaire population was born between 1945-1965 (baby boomer population) is included in the mass affluent segment. Having accumulated significant wealth, this population would require financial advice for retirement planning in the coming decade.
About the Market
- PESTLE Analysis (Overview): Macro market factors pertinent to this region.
- Market Definition: Main, as well as, associated/ancillary components constituting the market.
- Key Findings of the Study: Top headlines about market trends & numbers.
o Drivers: What are the key factors driving growth in the market?
o Restraints: Most relevant threats and restraints which hinder the growth of the market?
o Opportunities: Sectors of high return or quick turn around on investment?
o Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters.
- Market Share Analysis: Top players in the market (by value and volume).
- Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights.
1.1 Definition of the Market
1.2 Research Approach and Methodology
1.2.2 Research Design
1.2.3 Study Phases
1.3 Scope of the Report
1.4 Regional Analysis
1.4.1 PESTLE Analysis
1.4.2 Analysis of Ease of Doing Business
2. Market Dynamics
2.4 Market Demand Analysis
2.4.1 Identification of Target Subsegments (Demand Estimation)
2.4.2 Spending Patterns
2.5 Porter's Five Forces Analysis
2.5.1 Bargaining Power of Suppliers
2.5.2 Bargaining Power of Buyers
2.5.3 Threat of New Entrants
2.5.4 Threat of Substitute Products
2.5.5 Degree of Competition
2.6 Marketing and Product Placement Overview
2.6.1 Distribution Overview
2.6.2 Strategies for Distribution
3. 3. Market Segmentation
3.1 By Client Type
3.1.1 Private Wealth management
184.108.40.206 Market Size (USD Millions)
220.127.116.11 Distribution share by products
3.1.2 Institutional wealth management
18.104.22.168 Market Size (USD Millions)
22.214.171.124 Distribution share by products
3.2 By Geography
126.96.36.199 Market Size (USD Millions)
188.8.131.52 Distribution share by products
3.2.2 Saudi Arabia
184.108.40.206 Market Size (USD Millions)
220.127.116.11 Distribution share by products
18.104.22.168 Market Size (USD Millions)
22.214.171.124 Distribution share by products
126.96.36.199 Market Size (USD Millions)
188.8.131.52 Distribution share by products
4. Competition Analysis
4.1 Local Supply Ecosystem
4.2 Market Share
4.3 Strategies Adopted, Recent Events
5. Pricing Strategy
6. Government Policies
6.1 Criteria & Conditions
6.2 Ministries Involved