In response to a prosperous population that is expanding both in terms of size and diversity, the Middle East is experiencing rapid growth in its wealth management capabilities. Notably, assets under management (AUM) in the region witnessed a significant 16% increase to reach US$1.2 trillion in 2022, as reported by BCG.

Although the region has been a wealth management hub for a long time, until recently its focus was towards the top of the wealth scale. The sector today is undergoing a transformative evolution driven by technological advancements that have reduced the cost of service and minimum investment requirements. Additionally, the opening up of the economy and the emergence of internationally-focused regulations, have further contributed to this shift. As a result, wealth that was traditionally sent offshore is now increasingly being retained locally, attracting both native and expatriate clientele. 

Despite the positive outlook it appears that the wealth management sector in the region is at a crossroads with 77% of local investors in Saudi Arabia and 69% in the UAE  reported to be dissatisfied with their wealth manager.

Creating a technology-centric ecosystem of relevant investing products, services, and partners will meet increasing customer demand, and the wealth manager has an opportunity to stay competitive, making sure they are able to adapt to changes in consumer demands and evolving competition.

Good returns are no longer enough; wealth managers need to nurture relationships, strengthen digital channels, and expand the breadth and depth of accessible digital asset classes and ESG-linked propositions.

For wealth managers, this means there is an opportunity or, rather, the necessity to reinvent themselves adopt an investing ecosystem that will meet the demand and the evolving needs of the next generation investor, or take the risk and struggle to adapt and stay relevant.