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GCC centres pull investors in
01 June 2008
Until now, Middle East regional institutions and wealthy individuals invested via third parties in financial centres elsewhere. Andrew Hawa, regional manager of Sophis Middle East, says this is no longer always the case
These assets are being increasingly managed domestically in the rapidly developing financial centres of the Gulf Co-operation Council (GCC) countries, namely the United Arab Emirates (UAE), Bahrain, Qatar, Kuwait, Oman and Saudi Arabia, which constitute a thriving marketplace with massive growth potential for both domestic and international banks.
The 2007 World Wealth Report published by Capgemini and Merrill Lynch estimated private wealth in the GCC region at $1.4 trillion. This sum is likely to grow at more than 10% a year, and in addition to this, there are local institutional and government clients who also require financial services.
Some observers believe the events of 9/11 were a catalyst for regional investors to withdraw funds from the West. There was certainly some repatriation of assets because of perceived higher risks, and the development of financial centres in the GCC did indeed start in earnest around this time. But the rationale...
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