Middle East and North Africa (Mena) -based wealth managers and financial advisers expect international firms to take advantage of the growing numbers of high net worth and mass affluent individuals in the region.
Behavioural finance experts Oxford Risk surveyed 100 advisers and wealth managers and found 52% believe the growing numbers of high net worth and mass affluent individuals in Mena is attracting interest from international firms.
Some 85% expect international companies to grow their presence in the region over the next three years.
The research found advisers and wealth managers believe the asset management industry in Mena is expanding faster than predicted, with 69% saying it will hit $ 2trn (£ 1.62trn, € 1.89trn) assets under management before 2025 compared with the $ 1.2trn achieved in 2020.
Advisers believe the wider product ranges of international companies and their approach to investor suitability assessments give them an edge over local firms, as 70% point to the products that international firms can offer, while 54% highlight suitability assessments.
More than half (51%) believe international businesses have better digital capabilities, while 48% said adviser skill sets at international firms give them a competitive advantage.
Greg Davies, head of behavioral finance at Oxford Risk, said: “The asset management industry in Mena is expanding strongly and inevitably that is attracting the interest of international financial institutions. At the same time, clients in Mena want to increase their exposure to international assets with the growing use of technology by advisers in the region and the need for diversification driving demand.
“Wealth advisers in the region believe international firms have a competitive advantage on product range but also on how they assess investor suitability and in some cases adviser skills.”