Young, rich and female

Across the world women hold a significant share of private wealth and the Middle East is no exception. Estimates suggest women control more than a fifth, or 27 per cent, of the world’s wealth and between 20 and 25 per cent of the approximate $2.2 trillion (Dh8.08 trillion) high-net-worth assets across the GCC, according to a recent report by Strategy&.

“In the wealthy segment, women have their own money that they control end to end, which is then also their responsibility to manage. So they are looking for advice [about ] what to do with it,” says Daniel Diemers, Partner with Strategy&, who co-authored the private banking report. “In the past, maybe 10, 15 or 20 years ago, this was rather simple. You would leave it in a deposit account or you buy one single bond, but increasingly as this industry has grown [this has changed].”

Spotting an opportunity, many banks in the region are working to improve their products and services for wealthy women. Earlier this year, Al Hilal Bank in the UAE, where roughly one in 12 multimillionaires is a woman according to a study by wealth management consultancy WealthInsight, released a scented credit card aimed at women. Many other mainstream UAE banks have created special packages for female clients, and some, like Abu Dhabi Islamic Bank, have even introduced all-women branches.

Niche segment
But private banks, where ultra-wealthy women are more likely to bank, are also becoming more interested in the segment. “It’s a growing topic, both with the international private banks as well as the local banks that cater to the segment,” says Diemers.

One UAE bank taking notice of the growing segment is Mashreq. The bank will not say how many female private banking clients it has but admits the number is growing. 

“At Mashreq, we are very conscious of the impressive footprint women have in the trade and business segment of the UAE,” says Alexandre Suarez, Director of Investment Advisory in Mashreq Private Bank. “Their achievements in the past decades have been truly remarkable and gradually this trend spreads across several other Gulf countries. They are businesswomen, entrepreneurs, senior executives and each day they play a more vital role in the financial affairs of their families. Our private bank has been closely monitoring this evolution and equipping ourselves more each time to cater to this segment.”

Special treatment?
So far, women have been covered within the structure of Mashreq’s Private Banking, which is also increasingly staffed by women. But next year the bank aims to streamline the sector, says Suarez, and possibly introduce a dedicated female team to cover high-net-worth women in the UAE and broader GCC. “We notice that some women prefer or feel more comfortable being serviced by the same gender, i.e. a female banker when handling their financial affairs, but on the other hand others will openly oppose to have any distinguished type of treatment. It is really about understanding your clients, their needs and preferences,” says Suarez.

Mashreq is not alone in noticing this trend. UBS has also introduced female advisors to make wealthy women more comfortable. “We have female client advisers on the ground to cover all segments in parallel to male advisers for the segments,” says a spokesman for the bank. “This is important as in the rather traditional regions, e.g. outside Dubai, a millionaire or billionaire female would traditionally be advised by a female, not a male.” And the type of advice they seek tends to differ from male clients too, says Diemers.

Long-term goals
On average they tend to be less interested in high-risk investments, focusing instead on longer-term strategies. Bonds, real estate and real estate-linked investments, in particular, are popular.

“They think about their future and the future of their children, in particular, so they are often interested in a bit more complex investment vehicles where they say OK, I am taking a 10- or 15-year strategy,” he says.

This focus on wealth preservation among female private banking clients makes the segment both attractive and complex for bankers. But experts stress they must invest in female private banking in order to make it successful. It requires a different strategy than private banking for men and involves many aspects. “It’s not just a marketing campaign. It’s not just a perfumed credit card. It is more. It is, do I have advisory services catering to women? Do I have good solutions for longer-term sustainable investments, wealth preservation? It is the full package,” says Diemers.