Why Middle East HNWIs can’t kick the Swiss banker habit

International wealth managers are expanding in the Middle East and regional players have been recruiting in order to compete. However, it seems that for all the talk of tapping into regional wealth, high net worth individuals in the Middle East have yet to lose their penchant for Swiss private bankers.

We’ve mentioned previously how international wealth managers are building both their onshore and offshore offerings related to the Middle East.

However, according to a new report from Boston Consulting Group, the MENA region has the highest proportion of private wealth booked offshore globally, at 34%.

By contrast, Asia-Pacific books 7% offshore, Latin America 25% and North America just 2%.

Saudi Arabia leads the way, with 65% booked offshore, followed by Kuwait (53%), the UAE (52%) and Bahrain (37%).

Where is this wealth ending up? Primarily in Switzerland - $56bn was booked there in 2011, while $33bn ended up in the UK.

This means that, firstly, the Middle East remains an underdeveloped onshore centre, which suggests international firms will continue to gravitate to the region, potentially creating more job opportunities.

Secondly, with the influx of work, Swiss-based relationship managers with close client relationships in the Middle East will continue to be hot property.