Private wealth in Bahrain to grow 4pc until 2022

Manama : Private wealth in Bahrain is projected to grow at a rate of four per cent in the next four years, according to a study. The growth rate will continue until 2022, according to the new report ‘Global Wealth 2018: Seizing the Analytics Advantage’ by The Boston Consulting Group (BCG). 

The report also detailed the private asset allocation in Bahrain, stating that the asset allocation remains the highest for offshore assets, at 59pc, currency and deposits at 33pc, equities and investment funds at 6pc, life insurance and pensions at 1pc, and bonds at 1pc. “By 2022, asset allocation will have remained constant with only slight growth of 2pc to 35pc expected for currency and deposits,” Markus Massi, Senior Partner and Managing Director of BCG Middle East’s Financial Services Practice said in his comments in the report.  

He added that “Bahrain’s non-investible assets are not expected to experience any growth at all in the next five years, while investible wealth growth is projected to slow down from a compound annual growth rate (CAGR) 7pc between 2012 and 2017 to a CAGR of 4pc in the period 2017 to 2022.” 

“At 9pc, offshore assets drove growth by asset class between 2016 and 2017 in Bahrain. Other drivers of asset class growth included currency and deposits at 5pc, bonds at 4pc, and equities and investment funds at 1pc. “Looking to the future, growth by asset class is expected to experience a slightly slower, but steady growth with currency and deposits at 5pc, offshore assets at 4pc, bonds at 3pc and equities and investment funds at 2pc CAGR over the next five years,” the report stated.