Wealth Monitor April 2016 | Page 10

FACE VALUE | Ishrat Kiyani ‘Suitcase Banker is a Thing of the Past’ Ishrat Kiyani, Head of Mashreq Gold, tells Wealth Monitor regional wealth managers are focusing more on local markets, than offshore destinations, for investment opportunities 8 Given the current market conditions, what will 2016 look like for the UAE and the Arabian Gulf wealth management sector? The wealth management industry is entering an exciting stage in the UAE and the Gulf region. This, to a large degree, is driven by the global events, such as the slowing down of China’s economy, pressure on the US Fed to increase interest rates, and of course the low crude oil prices. In the GCC region, the shift in the wealth management business is also driven by the fact that over the past decade this region has earned its status as a global financial hub. The growth opportunities for wealth management in the GCC are immense. Over the last 10 years, the huge boom in crude oil prices has generated wealth creation both at an individual as well as government level (in the form of sovereign wealth funds or SWFs). Interestingly, we are seeing a new development in the regional wealth management sector. Until a few years ago, a major chunk of clients’ money tended to be invested abroad in global markets for higher yield. Of late, there’s been a shift in this trend because of the fact that the competition for wealth management business is intensifying in the region with many local as well as global banks vying for a share of the pie and to expand their local presence. That’s why we see the life of the ‘suitcase banker’ being a thing of the past now. Earlier, wealth managers and private bankers used to travel out of the Gulf region for business purpose as the target of investment was outside the region. There was www.wealth-monitor.com | April 2016