The primary purpose of the Beyond Convention report was to shed light on Middle Eastern wealth holders and on how they interact with providers of financial services designed to meet their needs.
Yousuf Mohamed Al-Jaida; “The QFC Authority is proud to have supported this valuable study offering the most comprehensive insight to date into Middle East wealth holders and their interaction with providers of financial services. The findings show that financial centres such as Qatar will increasingly be seen as attractive jurisdictions for family offices.” — Yousuf Mohamed Al-Jaida, Chief Strategic Development Officer of the Qatar Financial Centre Authority — elaborating upon the Beyond Convention report
The report found that wealthy families in the Middle East have a strong entrepreneurial spirit and seek an active role in managing their money. Further, members of these families scrutinize their wealth manager relationships more closely than they did a year ago. Middle Eastern wealth holders also have great confidence in the future of the region.
Dominic Samuelson; “It was fascinating to discover the breadth and diversity of the business activities evident among the participants in the research, as well as the strength of the entrepreneurial spirit shown in companies that have been active for generations.” — Dominic Samuelson, CEO of Campden Wealth
- More than 60% of respondents said they pursued wealth creation rather than wealth preservation as an investment goal (typically this would mean that few would be content with less than 8% growth on their investments)
- Furthermore, respondents mirrored their peer group elsewhere in the world by expecting to earn high returns on relatively low-risk investments
- But among the asset classes that respondents expressed a preference for, alternative investments such as hedge funds and private equity were popular
- Nearly 40% of respondents said that they had an excellent relationship with their private banker and/or wealth manager, with only 7% saying it was poor
- However, 80% of them felt that bankers did not take responsibility for the consequences of their advice and respondents also wanted more transparency about bankers’ fees
- In addition, 60% of respondents said they now scrutinize their relationship with their private banks and wealth managers much more closely than they did a year ago
- Companies in transition from the first to second generation owners, predominantly described themselves as entrepreneurial
- 55% of the respondents intend to continue to invest their money in the Middle East at the expense of other regions in the world
- Financial centres such as Doha were increasingly seen as safe havens to deposit money
- Africa figured prominently among investment destinations outside the Middle East amid a wider, and more pronounced preference for emerging markets over developed ones