Middle East and Africa private wealth to reach $12 trillion, says BCG

14 June 2017 Consultancy-me.com

Private Wealth in the Middle East and Africa (MEA) region is set to expand rapidly over the next five years to reach a staggering figure of $12 trillion, according to a report from the Boston Consulting Group (BCG). The projected growth comes on the back of a substantial increase in growth rate from less than 2% in 2015 to more than 8% in 2016. 

BCG has released the 17th edition of its annual 'Global Wealth Report’, highlighting important trends in the accumulation and movement of private wealth across the globe. According to the report, private wealth in the world grew at 5.3% in 2016 to reach the monumental sum of $166.5 trillion. The growth is attributed to a replenished global economy and a strong performance by equity markets. 

The MEA region, meanwhile, grew well above the global average at 8.5% in 2016, reaching a value of 8.1 trillion. The growth rate for the region has more than quadrupled from the previous year, which leads the report to forecast substantial growth for the region over the next five years. Private wealth in the MEA region is expected to grow at an average rate of 8% annually to reach $12 trillion by 2021.Drivers of Growth in Wealth Will Be Relatively Balanced from 2016 Through 2021

The region’s wealth is dominated by a handful of powerful countries. The consulting firm reports that UAE, Saudi Arabia, Qatar and Oman will account for 21% of the total wealth in the region. The wealth will be driven primarily by government policies of expansion that focus on heavily feeding local businesses with the aim of making them globally dominant. Both Qatar and Saudi Arabia have announced their ‘Vision 2030’ strategies for expansion.

The region is also a major contributor to the offshore wealth index. 31% of the region’s offshore wealth lies in Switzerland, and the number is projected to grow at a compounded annual growth rate of 4.7% over the next five years. UK/Channel Islands were the second most popular destination for offshore wealth, home to 23% and an expected CAGR of 5%. Dubai came in third with 18% and a CAGR of 4.5%.The Share of Wealth Held by Millionaire Households Will Continue to Increase

Among the population, households with private wealth of less than $1 million control 44% of the private wealth. Households controlling between $1 million and $20 million accounted for 30%. Meanwhile, households with wealth between $20 million and $100 million control 18% of the wealth, while those with more than $100 million hold 8%.

Commenting on the findings of the report, Markus Massi, a Senior Partner and the Managing Director of the Financial Services Practice at BCG in the Middle East, said, “In the Middle East and Africa, wealth expansion should stem, in relatively equal portions, from existing assets and higher household savings. Looking ahead, the share of wealth allocated to each asset class is expected to remain stable, with regional wealth projected to rise at an annual rate of roughly 8 percent through 2021. In the coming years, more local players will enter the wealth management market as traditional revenue pools become more competitive.”

ACCA hosts conference on technology in the Middle East finance sector

29 March 2019 Consultancy-me.com

The ACCA has hosted a regional conference on technology and innovation in the Middle East finance sector, with the inaugural event featuring leaders from Grant Thornton, Accenture, and Deloitte among a range of speakers.

Following its recent women in finance forum in Dubai, the Association of Chartered Certified Accountants (ACCA) has hosted its inaugural Techovate Regional Conference, bringing together senior ACCA members and key stakeholders to discuss the impact of technology and innovation on the finance sector in the Middle East – with some of the region’s leading consultants among the speakers.

“In a bid to eradicate the myth and preconception of technology, we have been working on distilling the impact which technology will have for our members and wider commercial society, alongside aligning our approach to the regional innovation strategy which will see the UAE become the smartest in the world by 2030,” said ACCA Middle East director Lindsay Degouve de Nuncques.

Degouve de Nuncques’ opening address was followed by a keynote presentation from Accenture’s MENA digital lead Xavi Anglada (who also appeared at the recent World Mobile Conference as well as last year’s Artificial Intelligence Week in the Middle East) – who prior to joining Accenture served as the CEO of Cash Credit, a Delta Partners-backed fintech start-up providing micro-finance services.ACCA hosts conference on technology in the Middle East finance sectorOther speakers from the consulting realm included Deloitte Middle East senior Audit & Assurance partner Cynthia Corby (last year named by Forbes as one of the 100 most influential women in the Middle East), and Grant Thornton Transformation Advisory Partner George Stoyanov, who spoke on unlocking value through tech transformation and big data, AI and analytical benchmarking.

A near twenty-year consulting veteran in the region, with extensive experience in corporate governance, risk management and internal audit serving the financial services industry, Stoyanov prior to joining Grant Thornton in 2017 was a director in EY’s financial services advisory division out of Abu Dhabi, before which he served as a director with PwC’s Risk Assurance Services practice in Kuwait.

Attendees also heard from Joy Ajlouny, who together with BCG alumnus Idriss Al Rifai co-founded Fetchr, as well as Pierre Arman, Market Development Lead for Tax and Accounting with Thomson Reuters, Mansoor Sarwar, a director with enterprise software firm Sage, and Sayd Farook, a doctor in behavioural economics and adviser to the office of Sheikh Mohammed bin Rashid Al Maktoum.

“Great discussions on how technology and digital are disrupting the financial services industry at ACCA Techovate Conference in Dubai,” wrote Anglada in a follow-up post on LinkedIn. “From an inspiring and personal view from Joy Ajlouny throughout her entrepreneurship journey, to the visionary PoV on innovation from Sayd Farook, helping shape Dubai's future, to many other key leaders in the banking space.”