Julius Baer, one of the oldest Swiss private banks, expects its Middle East business to strengthen as it prepares to open another hub office in Qatar to further boost its operations in the region, its chief executive has said.
While the new operation in Qatar, which has the fourth highest GDP per capita income of countries globally, will be a boon for Julius Baer, the UAE remains its biggest market in the Middle East and its fourth-largest worldwide globally in terms of clients and assets.
The bank has “clear growth plans” for its operations in the Arab world’s second largest economy, whose strong performance drove the region to outperform the Zurich-based wealth manager’s business elsewhere in the world, Philipp Rickenbacher, told The National in an interview.
The UAE economy expanded by 8.4 per cent in the first quarter of this year and is set to grow in 2022 at the fastest pace since 2011.
“This region has grown over-proportionately, in comparison to the global Julius Baer network,” he said. "We experienced very strong growth, especially with the help of Dubai.”
He declined to give the percentage of growth.
Julius Baer, which has 428 billion Swiss francs ($442.7bn) in assets under management, plans to begin its Doha operations in October. The move is part of the bank’s “hub strategy”, which from an advisory perspective, “gives us one more foot in the market here in the region”, it said.
“This addition has a lot of weight ... as we've been very cautious in extending our footprint," said Mr Rickenbacher, who took over the bank as chief executive in September 2019.
"It's the first opening of an advisory office in a country in my time as chief executive in the last few years.”
Julius Baer was among the first wealth managers to get a licence from the Dubai International Financial Centre in 2004. From a few employees almost two decades ago, it has grown to more than 140 employees, serving the region from its hub in the emirate. Qatar will add to its regional network of offices in Bahrain, Israel and South Africa and the UAE.
The bank is also bullish on the growth potential of Saudi Arabia, the biggest Arab economy and Opec’s top oil producer, which is set to reap $357bn in revenue this year.
The International Monetary Fund expects it to grow at the quickest pace in a decade and to be one of the world’s fastest-growing economies this year. The kingdom's economy is forecast to expand 8.7 per cent this year, according to Jadwa Investment.
“We are looking into that market and we have a clear vision on how to develop [it] with our specific footprint as a global wealth manager,” Mr Rickenbacher said.
The bank serves ultra-high-net-worth individuals and high-net-worth private clients, single and multi-family offices and intermediaries in the region.
HNWI are those who possess a net wealth of $1 million-$30m, while UHNWI clients have a net worth above $50 million.
The wealth creation – not only the “absolute level of wealth”, but also the intensity of the “ongoing wealth creation” is what makes Julius Baer bullish on the Middle East and Africa region’s business growth prospects.
“We don't have a crystal ball but here, Dubai is an excellent starting point for the next few years."
The region, he said, has positioned itself very well globally coming out of the pandemic, with strong business and economic fundamentals and social infrastructure for wealthy investors.
“I think a lot will happen here. I would foresee a strong growth potential, strong wealth creation potential here,” he said. “That's the reason why we keep investing here.”
Private banks and wealth managers are increasingly pushing to expand their presence in the Middle East, particularly in the oil-rich Gulf countries. Economies in the six-member economic bloc of the GCC have rebounded strongly amid rising oil prices that has further boosted wealth creation in the region.
The number of UHNWI in the GCC is expected to climb by 26 per cent in the next five years to over 9,100, while the tally for HNWI will jump by 12 per cent on average, the consultancy Knight Frank said in its Wealth Report in March.
About 57 per cent of those UNHWIs will be based in Saudi Arabia, while 23 per cent will be in the UAE.
Financial wealth in the UAE is growing at a compound annual rate of 6.7 per cent to reach $1 trillion in 2026, from $700bn last year, according to the Boston Consulting Group.
Dubai is the 23rd-most popular city in the world for ultra-wealthy residents, after the emirate recorded an 18 per cent increase in HNWIs in the first six months of 2022, to 67,900, New World Wealth, a research company that tracks wealth globally, and Henley & Partners said in a report earlier this month.
The number of billionaires in Dubai increased by one to 13 in 2022, while the city’s population of centimillionaires grew to 202 from 165 last year. The number of multimillionaires increased to 3,170 in June from 2,480 last year, the study found.
Capitalising on consistent wealth creation, DIFC has also set up a Global Family Business and Private Wealth Centre, as it looks to double its contribution to the emirate's economy by 2030. The move comes at a time when about Dh3.67tn in assets will be transferred to the next generation in the Middle East over the next decade.
“It's a very young region and a very dynamic region … [and] the fact [is] that this region has a very broad reach,” Mr Rickenbacher said.
“When I see cross connections, for example, into Africa or into the broader non-resident Indian community, even into India itself, which is also an important marker for us, I think, Dubai, the UAE the whole region has a reach that goes beyond just its national borders.”
The bank is pursuing an ambitious growth strategy, looking to more than double its asset base profitably within a decade and growing its business organically while also considering mergers and acquisitions.
“It is something that we look at globally,” he said with regards to possible mergers or acquisitions.
In 2012, Julius Baer bought Merrill Lynch's international wealth management business, boosting its scale.
The industry consolidation has come to a halt in the last three years globally, with no major deals. However, consolidation activity is expected to pick up pace in the coming years, he said.
“We are prepared to grow in our key markets, [organically and] also through M&A, and obviously that would include the UAE or the [broader] region, but the right targets will have to come [up],” he said.
Julius Baer’s AUMs declined 11 per cent in first half of this year, driven by the significant corrections in global equity and bond markets in what the bank described as one of the worst six-month periods for capital markets in decades.
The risk appetite of clients still has not bounced back to pre-pandemic levels as most investors are “waiting for clarity on the macroeconomic front," Mr Rickenbacher said.
“I think right now we're still in a situation where clients are invested on the one side, but are also keeping some powder dry for when it's more clear.”
Data currently does not suggest a high likelihood of a global recession next year, but even if there is a recession, the world economy has resilience to bounce back as quickly as it did from the pandemic-driven recession, he said.
“I am a professional optimist, and I believe that the resilience of the world is often underestimated and that we tend to focus on the negatives,” he said.
“I don't underestimate the recovery potential.”
India squad
Virat Kohli (captain), Rohit Sharma, Mayank Agarwal, K.L. Rahul, Shreyas Iyer, Manish Pandey, Rishabh Pant, Shivam Dube, Kedar Jadhav, Ravindra Jadeja, Yuzvendra Chahal, Kuldeep Yadav, Deepak Chahar, Mohammed Shami, Shardul Thakur.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
MATCH INFO
Tottenham 4 (Alli 51', Kane 50', 77'. Aurier 73')
Olympiakos 2 (El-Arabi 06', Semedo')
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The details
Heard It in a Past Life
Maggie Rogers
(Capital Records)
3/5
UAE currency: the story behind the money in your pockets
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
Company%20profile%20
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
UAE currency: the story behind the money in your pockets
RESULTS
5pm: Maiden | Dh80,000 | 1,600m
Winner: AF Al Moreeb, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
5.30pm: Handicap | Dh80,000 | 1,600m
Winner: AF Makerah, Adrie de Vries, Ernst Oertel
6pm: Handicap | Dh80,000 | 2,200m
Winner: Hazeme, Richard Mullen, Jean de Roualle
6.30pm: Handicap | Dh85,000 | 2,200m
Winner: AF Yatroq, Brett Doyle, Ernst Oertel
7pm: Shadwell Farm for Private Owners Handicap | Dh70,000 | 2,200m
Winner: Nawwaf KB, Patrick Cosgrave, Helal Al Alawi
7.30pm: Handicap (TB) | Dh100,000 | 1,600m
Winner: Treasured Times, Bernardo Pinheiro, Rashed Bouresly
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
MEDIEVIL%20(1998)
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Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
