Boston Consulting Group Global Wealth 2020 report: Millions hold 54.5% of wealth in Saudi Arabia in 2019

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The compound annual growth rate of millionaires in the Kingdom of Saudi Arabia is expected to grow by 1.2% annually during the period from 2019 to 2024

RIYADH – The twentieth annual study of global wealth management conducted by the Boston Consulting Group revealed that the year 2019 saw millions of owners acquire about 54.5% of the wealth in the Kingdom, while the study expected the number of millionaires in the Kingdom to grow by 1.2% annually in the coming years. The report, titled “Global Wealth 2020: The Future of Wealth Management – The Executive Directors’ Agenda”, provided a comprehensive overview of the sector, taking into account the past and next decades up to the year 2040, with a view to providing a detailed study of wealth growth over the past twenty years and evaluating the potential impact long. Term for the SK virus crisis.

The results of the study indicate that the Kingdom acquired 17.4% of the share of personal wealth in the Middle East and Africa in 2019, as it witnessed a growth of 3.5% annually to reach $ 1 trillion during the period between 2014 and 2019. The report indicated that currencies and deposits accounted for the ratio It is the highest of the internally managed assets category in the Kingdom, as this category acquired 47.1% of the total personal wealth in 2019, while the fastest growing category of bonds is expected to be 11.2% up to 2024.

“Despite the current downturn in the pace of the economy and the globally unstable outlook for the coming years, it is estimated that Saudi Arabia will continue to record sustainable growth across many areas within the wealth sector,” said Mustafa Buska, commissioner director and partner at Boston Consulting Group Middle East. .

In her study, Boston Consulting Group presented a vision for the future of wealth management by focusing on studying the variables that will show value propositions and proposals in the wealth management sector over the next two decades, as well as studying the evolution of interactions and guessing new business models that will emerge in the near future. In addition, the Boston Consulting Group study provided a comprehensive agenda for wealth management executives to protect net profits by focusing on areas where they hope to increase their gains in the future, in addition to building appropriate support capabilities.

The report highlights three potential post-Corona growth scenarios that include the “rapid recovery” scenario, the “slow recovery” scenario, and the “permanent damage” scenario. Regardless of the scenario that will take place in the future, wealth management companies are likely to face more pressure, in addition to that many of them are already facing many challenges before the Corona virus crisis. The report indicated that customer requirements and expectations are changing at an accelerated pace, in addition to the intensity of competition increasing, and cost-to-income ratios have become much higher compared to the period before the previous financial crisis, reaching 77% in 2018 compared to 60% in 2007.

Although some wealth management companies have made significant progress in recent years in terms of strengthening the ability of their businesses to keep pace with the changes around them, most of them still need to do many things, and their executives have to deal with 2020 as a turning point Crucial to their business path. The agenda proposed by the Boston Consulting Group to CEOs of wealth management companies highlights three main imperatives:

• Protect profits by continuing to focus on smart sources to increase revenue, improve the front office system and environment, simplify compliance procedures and manage risk, and improve structural efficiency.

• Leading the future by preparing more personalized value propositions, enhancing corporate governance offers, social and environmental responsibility, influencing investment, designing challenge factors, as well as making use of systems, mergers and acquisitions.

• Capacity building through gaining a better understanding of customer requirements, attracting the best talent, investing in digital and data services, and developing modern technology platforms.

“In light of the economic instability and the unpredictability of what is to come, wealth management companies and their executives must immediately start devising strategies for each of the possible scenarios we have mentioned previously. Regardless of the possibility of a certain scenario being achieved in the future three Strong plans and strategies must be developed in preparation for all scenarios. There is no doubt that the next stage will witness difficult times, and the necessary measures and measures must be taken to ensure continuity and face any potential challenges.

About Boston Consulting Group
Boston Consulting Group collaborates with a wide range of partners in various business and social and economic sectors to help them identify challenges, find solutions to them, and take advantage of high-value opportunities. Boston Consulting Group has been a world leader since its founding in 1963. The group is helping its partners today to fully transform and bring about the required changes and enable institutions to grow and enhance their market competitiveness and increase profitability.

Boston Consulting Group believes that companies that aspire to succeed in today’s market need to combine human and digital capabilities. Our specialized and diversified global teams are distinguished by long-standing experiences and insights across various sectors and fields to bring about the necessary transformation. The group offers advanced solutions in leading management consulting, technology and design as well as digital and institutional projects and turning the final business goals into reality. The group adopts a unique cooperative business model that covers all customer requirements, which contributes to achieving the desired results that allow customers to achieve more prosperity and growth.

© Press Release 2020

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