Qatar’s non-investible assets are expected to increase at a CAGR of 23% in the next five years, while investible wealth growth is projected to accelerate at a CAGR of 7%, said Markus Massi, senior partner and managing director of BCG Middle East’s Financial Services practice. Regarding asset allocation, currency and deposits, at 45%, were the highest proportion of assets in Qatar in 2017; followed by offshore assets at 41%; equities and investment funds at 10%; and life insurance and pensions at 3%. “By 2022, currency and deposits, and life insurance and pensions are expected to experience slight growth to 53% and 5% respectively. For offshore assets, and equities and investment funds will experience a decline to a respective 36% and 6% respectively,” Massi said.
At 24%, life insurance and pensions drove growth by asset class between 2016 and 2017 in Qatar. The other drivers of asset class growth included currency and deposits at 21%, and offshore assets at 5%. In Qatar, equities and investment funds and bonds experienced decline of 16% percent and 2% percent respectively. “Looking to the future, growth by asset class is expected to experience a slightly slower, but steady growth with life insurance and pensions at 23%, and currency and deposits at 11% CAGR over the next five years,” BCG said.
In the same period, growth in offshore assets will remain constant at CAGR of 5% and equities and investment funds and bonds will decelerate by 2% CAGR and 1% CAGR respectively, it said.While offshore share is expected to decline over the next five years from 41.4% in 2017 to 35.5% in 2022, it will continue to grow at a CAGR of 4.6% to reach $95bn in Qatar in the same period, according to the BCG. Otherwise, personal wealth in the Middle East rose 11% to $3.8tn in 2017, a significant increase compared with growth in the previous five years, it said.
Sources and photo-credits: Gulf Times