DOHA: Standard Chartered Private Bank, in partnership with Campden Wealth Research, yesterday launched “Business Before wealth”, a report on the wealth management needs and preferences of High Net Worth (HNW) business owners in Asia, Africa and the Middle East.
The report showed that growing their business remains the primary and dominant goal for HNW business owners in the Middle East. The report also showed that 82 percent of Middle East business owners surveyed have already internationalised their businesses compared to 58 percent of Asian businesses and 42 percent of African businesses implying the need for international banking services that support the geographic reach and growth of these businesses.
“Our footprint markets coincide with the fastest growing wealth pools in the world and entrepreneurs are a key driver of this economic growth and the creation of jobs in Asia, Africa and the Middle East. These emerging market entrepreneurs are fast becoming an ever-more crucial client segment. This research reveals the dynamics of business and personal wealth of this new segment of wealthy individuals, and hopefully generates thought and discussion on how private banks can adapt to serve them better,” said Michael Benz, Global Head, Private Banking Clients, Standard Chartered Private Bank.
The research surveyed stakeholders in family businesses with a 2012 turnover and family net worth in excess of $100m, as well as stakeholders in non-family businesses with a 2012 turnover and individual net worth in excess of $25m.
An overwhelming majority (85 percent) of respondents are heavily involved in the daily management and financial affairs of their business. Together with the main focus on growing their business, this leaves less time for personal wealth strategies, including planning for the eventual transfer of wealth, although, in the long-term, the importance of personal wealth preservation triples from 7 percent to 21 percent. As a matter of fact, several of the study’s interviewees admitted the need for education when it comes to preserving the family wealth. The Peninsula
