A large bank safe is the centrepiece of an advertising campaign by Abu Dhabi Islamic Bank's private banking arm. The copy of the advertisement reads: "ADIB will safeguard your wealth and provide confidentiality."
At first glance the ad looks like a swipe at the Swiss banks that have been plagued by confidentiality issues and massive fund outflows.
The increase in the number of disgruntled clients seeking a new home for their money is only one reason why private banks are expanding in the region.
With the shift of global wealth eastward to the fast-growing big economies, local banks are launching dedicated private-wealth operations while the large international banks are expanding their wealth-management operations to the Middle East and Asia.
As opportunities emerge for investors in countries such as India and China, the centre of gravity for growth in the industry is moving from New York and London to Mumbai, Hong Kong and Abu Dhabi.
"There is clearly a trend of investing further eastward as the asset allocation follows economic growth," says Nigel Putt, the head of private banking, Middle East, for Lloyds International, part of Lloyds Banking Group. "Our presence in this market since 1977 gives us a visible commitment to benefit from that."
Merrill Lynch and Capgemini in their latest wealth report forecast that the Asia-Pacific region would overtake North America as home to the largest concentration of wealthy people in the world by 2013. That move is already well under way. At the end of 2008, China had more dollar millionaires than the UK: 364,000 compared with 362,000
And private bankers are following the money. In recent weeks, JPMorgan relocated its head of private banking from New York to Hong Kong, while HSBC is expected to do so shortly.
Smaller private banks and newcomers have been able to attract some of the wealthy who were disillusioned with their investments as the financial crisis revealed banks' exposure to toxic derivatives, as well as shortcomings of regulators and the global financial system.
This includes so-called high-net-worth individuals from the Gulf who did their banking while vacationing on Lake Geneva.
"You can clearly see a trend of large western banks shifting their staff to this region. It is quite obvious why: they can create more added value here," says Alexander von Pock, a partner at AT Kearney, the consultancy.
The financial crisis was costly for the region's wealthy. In 2008, assets of the Gulf's wealthiest fell by 16 per cent, Merrill Lynch and Capgemini estimated.
And many of the rich are reducing borrowing and risk following the experiences of the past two years. That can be good for private bankers.
"Even if the total value of wealth held in private hands continues to decline in 2010, that does not mean that the total value of assets in private banks continues to fall," says Mr Putt. "To the contrary: business sales may increase cash assets, which they may place with private banks."
In addition, the rich are becoming more sophisticated and seeking more comprehensive investment advice, ranging from bread-and-butter portfolio management to tax advice, access to capital markets and succession planning.
Take Bank Sarasin-Alpen, a joint venture between the small Basel-based private bank and the UAE investment bank Alpen Capital. In November, the private bank, which has about 30 people in the Middle East, launched a full range of Islamic private banking products, which includes Sharia-compliant estate and succession planning.
While Switzerland remains the world's number one offshore wealth manager and it may be some time before a dedicated local private bank emerges, the long-term outlook is positive.
"Prospects are good, despite the dip we have seen," says Mr von Pock.
@Email:uharnischfeger@thenational.ae
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Wonka
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
At a glance
- 20,000 new jobs for Emiratis over three years
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
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BANGLADESH SQUAD
Mashrafe Mortaza (captain), Tamim Iqbal, Liton Das, Soumya Sarkar, Mushfiqur Rahim (wicketkeeper), Mahmudullah, Shakib Al Hasan (vice captain), Mohammad Mithun, Sabbir Rahaman, Mosaddek Hossain, Mohammad Saifuddin, Mehidy Hasan Miraz, Rubel Hossain, Mustafizur Rahman, Abu Jayed (Reporting by Rohith Nair in Bengaluru Editing by Amlan Chakraborty)
RESULTS
5pm: Maiden (PA) Dh80,000 2,200m
Winner: Arjan, Fabrice Veron (jockey), Eric Lemartinel (trainer).
5.30pm: Maiden (PA) Dh80,000 1,400m
Winner: Jap Nazaa, Royston Ffrench, Irfan Ellahi.
6pm: Al Ruwais Group 3 (PA) Dh300,000 1,200m
Winner: RB Lam Tara, Fabrice Veron, Eric Lemartinal.
6.30pm: Shadwell Gold Cup Prestige Dh125,000 1,600m
Winner: AF Sanad, Bernardo Pinheiro, Khalifa Al Neyadi.
7pm: Shadwell Farm Stallions Handicap (PA) Dh70,000 1,600m
Winner: Jawal Al Reef, Patrick Cosgrave, Abdallah Al Hammadi.
7.30pm: Maiden (TB) Dh80,000 1,600m
Winner: Dubai Canal, Harry Bentley, Satish Seemar.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
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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
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
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SPEC%20SHEET%3A%20SAMSUNG%20GALAXY%20Z%20FOLD5
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Zayed Sustainability Prize
The Dark Blue Winter Overcoat & Other Stories From the North
Edited and Introduced by Sjón and Ted Hodgkinson
Pushkin Press
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.