Private wealth in Saudi Arabia grew 3% between 2016 and 2017 and is expected to grow to $1.1 trillion in investible assets by 2022, according to a report from the Boston Consulting Group (BCG).
In its 2018 global wealth report, BCG found that personal wealth across the Middle East rose by 11% to $3.8 trillion in 2017.
In Saudi Arabia, personal wealth is projected to grow at a compound annual growth rate of 5%.
“Taking an in-depth look at wealth distribution, both investible and non-investible assets in Saudi Arabia are expected to grow at a steady pace,” said Markus Massi, managing director of BCG Middle East’s financial services practice.
He added that offshore assets were the highest proportion of assets in Saudi Arabia in 2017 at 49%, following by currency and deposits at 26%, equities and investment funds at 19 percent and life insurance and pensions at 6%.
“For the most part, this asset allocation is expected to experience slight growth by 2022, with offshore assets, currency and deposits, and equities and investment funds projected to reach 50 percent, 26% and 18% respectively,” he said.
In Oman, personal wealth was found to have grown at 5% over the same time period, compared to 7% in Bahrain and 5% in Kuwait, where personal wealth is expected to reach $260 billion in investible assets by 2022.
Private wealth in the UAE is forecast to grow $590bn by 2022, as reported by International Investment.