Middle East set to see wealth soar

Middle East set to see wealth soar

With wealthy families and individuals in other regions sometimes struggling to retain their fortunes in today’s tempestuous economic backdrop, figures show HNWI’s and UHNWI’s in the Middle East have, for the most part, remained relatively unscathed by the turmoil.

How the Middle East has been growing wealth

While oil typically comes to mind when thinking about the source of Middle Eastern wealth, there are more factors at play. ‘Demand for oil has remained strong, even if prices have fluctuated. This demand has helped maintain and grow wealth in the region, but there are undoubtedly other influences that have helped wealth soar,’ says ZEDRA Geneva Senior Relationship Manager, Abigail Tipton, who works extensively with Middle Eastern clients.

As the Middle East has looked to diversify revenues away from oil, individuals realised the benefits of doing the same. Diversification in the region as a whole is a complex topic and one that has been a soaring success in some countries (Dubai being one) and has been a limited achievement in others. ‘The interesting point about diversification, is that as the region as a whole started to think about it, some individuals moved quickly to diversify their own long-term revenue streams by spreading their business portfolios and interests into new areas. In doing so, many have reaped rewards in terms of wealth,’ Abigail continues.

How are Middle Easterners structuring their wealth?

When it comes to the practical aspects of structuring their wealth, working with a team of trusted partners is particularly important for Middle Easterners. ZEDRA is focused on building long-term relationships with all our clients, and this is particularly true for clients in the Middle East.

As sources of wealth diversify, ZEDRA is also being called on to assist in different ways. ‘Middle Easterners are very astute when it comes to creating wealth as well as retaining it, be that through investments or other solutions. Generally, our clients don’t like to retain large volumes of cash, and prefer to spread their wealth to minimise risk. As an example, property remains a popular investment choice, so we do a lot of work around putting the right structures in place for that. We’re also seeing increased interest in our private fund solutions and providing assistance with escrow and sharia compliant structures,’ concludes Abigail.

For more information, please contact Abigail Tipton.