JP Morgan foresees 10% growth in its Middle East wealth operations

Pedro Gonçalves
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JP Morgan foresees 10% growth in its Middle East wealth operations

JP Morgan estimates its wealth management business in the Middle East and North Africa (MENA) will grow up to 10% a year.

The largest US lender by assets has a regional client base in the region with combined net worth that surpasses the $100m mark, between HNWIs and family offices.

"We've definitely seen a period of slowness in the last 18 to 24 months but [investments] are starting to pick up again now. We are seeing more and more interest coming from new clients," Tara Smyth, head of private banking and wealth management for the Middle East at JP Morgan, told local news outlet The National.

We are seeing more and more interest coming from new clients"

Potential for wealth management operations in the region are high, especially in the UAE.  Personal financial wealth in the UAE from 2013 to 2018 grew by 5% a year to $400bn, and is expected to grow by 8% each year $600bn by 2023,  as global wealth declines around the globe, according to the latest report by Boston Consulting Group (BCG).

Almost half (47%) of the total personal wealth in the UAE in 2018 was held by millionaires.

The biggest market for the bank in the region is Saudi Arabia - also the Arab world's biggest economy - due to high gross-domestic product (GDP) growth, size of population and the concentration of high net-worth individuals in the kingdom, according to the bank.

JP Morgan added 10% to its client's base in the first six months of the year, according to Smyth.

 

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