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Private wealth in Sultanate set to grow 6%

 Staff Reporter


Private wealth in the Sultanate is expected grow at 6.1 per cent to reach approximately $300 billion in the next five years, according to a report by The Boston Consulting Group (BCG).

The firm in its report titled Global Wealth 2017: Transforming the Client Experience, said private wealth in Oman witnessed an 8 per cent growth in 2016.

The growth of private wealth in Oman was driven primarily by equities. In 2016, the amount of wealth held in equities increased by 11.7 per cent, in comparison to cash and deposits at 6.1 per cent and bonds at 2.1 per cent, the report added.

Based on the 2017 Global Wealth Report, overall growth of wealth in Oman is expected to decline slightly to 6.1 per cent over the next five years.

Investments in equities will post a growth of 7 per cent compound annual growth rate (CAGR), and cash and deposits, at 5.6 per cent, the report added.

Private wealth held by ultra-high-net-worth (UHNW) households (those with above $100 million) in Oman recorded a growth rate of 14.6 per cent in 2016.

However, the growth spurt experienced by this segment is expected to slow down to 10.4 per cent through 2021, the report added.

The upper high-net-worth (HNW) segment (those with between $20 million and $100 million) also experienced a very strong growth in 2016 at 14.5 per cent.

In the next five years, the projected growth of this segment will see a slight slowdown to 10.1 per cent, the BCG report added.

In Oman, private wealth held by the lower HNW segment (those with between $1 million and $20 million) witnessed a slight growth of 3.7 per cent in 2016. Private wealth in this segment has a projected of 2.4 per cent over the next five years.

Over the next five years, wealth in the Middle East and Africa region is set to reach $12 trillion—and the UAE, Oman, Qatar, and Saudi Arabia’s contribution will account for 21.1 per cent.

The total number of millionaire households (those with more than $1 million in net investable assets) in Oman increased by5.6 per cent CAGR in 2016. Looking ahead, growth is set to decline slightly at 4.4 per cent by 2021, the report added.