It continues to rank as the country with the highest growth in the ultra-high-net worth (UHNW) segment in the GCC, according to a new report by The Boston Consulting Group (BCG).
Private wealth growth in Qatar witnessed an increase in 2016 (6.2%). It continues to rank as the country with the highest growth in the ultra-high-net worth (UHNW) segment in the GCC, according to a new report by The Boston Consulting Group (BCG).
The report, ‘Global Wealth 2017: Transforming the Client Experience’, said in Qatar, the growth of private wealth was driven primarily by equities. In 2016, the amount of wealth held in equities increased by 10.4%, in comparison to cash and deposits at 4.4% and bonds at 2%.
Based on the report, overall growth of wealth in Qatar is expected to decline slightly to a.5.2% CAGR over the next five years. Equities, at 6.7% CAGR, will be the primary contributor to this slowdown over the next five years.
Taking an in-depth look at wealth distribution, private wealth held by UHNW households (those with above $100 million) in Qatar experienced the strongest growth in the GCC – at 23% – in 2016. Growth is expected to decline somewhat through 2021, with private wealth held by this specific segment slowing to a CAGR of 17.5%.
The upper high-net-worth (HNW) segment (those with between $20mn and $100mn) experienced steady growth in 2016 at 6.6%. In the next five years, the projected growth of this segment will decline slightly to 4.1% CAGR.
Lower HNW segment
In Qatar, private wealth held by the lower HNW segment (those with between $1mn and $20mn) witnessed a robust growth of 8.3% in 2016. Private wealth in this segment has a projected CAGR of 7.2% over the next five years.
The total number of millionaire households (those with more than $1mn in net investable assets) in Qatar increased by 2.1% in 2016. Looking ahead, growth is set to decline slightly to 1.5% CAGR by 2021.
The findings of BCG’s report also revealed that, in 2016, Switzerland remained the largest destination for the Middle East and Africa’s offshore wealth, accounting for 31% with a projected CAGR of 4.7% over the next five years. This was followed by the UK/Channel Islands at 23% with a CAGR of 5% and Dubai at 18% with a CAGR of 4.5%.