Liquid assets held by the HNW category in Middle East and Africa, attained a value of USD 1,371.77 Billion in 2022
The value of these assets recorded a historical growth (CAGR) of 11% between 2019 and 2022, and is expected to grow by ...
GlobalData projects the indicator to grow ...
Liquid assets held by the HNW investors in the Middle East and Africa recorded a mid-single-digit YoY growth in 2022
Liquid assets held by the HNW category in the Middle East and Africa grew continuously between 2017 and 2022.
A key focus for most wealth providers, HNW entrepreneurs constitute the second-largest target segment (after professionals), followed by females and expats, who represent an almost equally large target market. Inheritors are the smallest segment; however, providers reaching out to female inheritors should not encounter any trouble growing their business given that this segment is often overlooked.
While there is overlap between segments, distinct investment and servicing preferences call for a differentiated servicing strategy. For example, female HNW investors are more risk averse than other segments, but they tend to be comparatively loyal to their wealth manager. On the flipside, inheritors tend to be the least loyal, meaning early and ongoing engagement is critical.
Investors in developing markets have a higher propensity to rely on a smaller number of wealth managers
Emerging markets are not only an attractive target market thanks to rapidly rising wealth levels, but HNW investors also show a lower propensity to spread their wealth across multiple wealth managers. According to our 2020 Global Wealth Managers Survey, only a low-double-digit percentage of investors in Europe (which is home to some of the most developed wealth markets) work with just one or two wealth managers; this proportion falls significantly in less developed markets. This is bad news for wealth managers in well-established markets. Greater risk and strategy diversification across portfolios creates more competition among providers, which are continuously competing for the biggest slice of the pie.
In light of this, reaching out to investors in developing markets at an early stage is paramount to fostering trust and building strong relationships, thus minimizing the risk investors will feel compelled to spread their fortunes across multiple companies. This means wealth managers cannot afford to ignore investors in lower wealth tiers. Accompanying those who are still considered mass affluent during their wealth-building journey – while their fortunes do not justify the use of multiple wealth managers – will pay off in the future. Giving them the attention traditionally reserved for the HNW segment and fostering loyalty early on will result in a greater share of wallet going forward.
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