Middle East Investors Contemplating Asset Transfers to Alternative Service Providers

Jun 13, 2023 Hubbis

According to the 2023 EY Global Wealth Research Report, a survey conducted by EY indicates that 59% of Middle East investors are more likely than their global counterparts (45%) to transfer their assets to another provider within the next three years.

The primary motivation behind this decision is the search for higher yields. The findings of the report underscore the significance of investment performance for both Middle East and global investors. The report also highlights the need for Middle East wealth management providers to prioritise the enhancement of their digital capabilities and expand their investment options.

The survey reveals that the drive to move assets is not limited to a specific generation, as 81% of millennials and 50% of Generation X investors intend to transfer their assets before 2026. Fintech firms, AI trading platforms, and full-service institutions are expected to benefit the most from this shift in assets.

Another notable discovery from the survey is that nearly half of the clients surveyed perceive wealth management as increasingly complex over the past two years. Particularly in the Middle East and North Africa (MENA) region, ultra-high-net-worth individuals and those investing through discretionary or execution-only mandates find wealth management more challenging to navigate.

The survey also reveals that 96% of respondents in the Middle East have adopted a more defensive investment style due to a decline in portfolio value in recent years, compared to 73% of global investors. Additionally, 47% of MENA participants have increased their allocation to savings and/or deposits as a safety response over the past two years.