An Honest Outlook on the Wealth Management Sector in Dubai
For many years, Dubai has been renowned as a land for the rich. The advantageous tax regime and the luxurious living standards have attracted approximately 68,000 millionaires, as per the latest data in 2024. This gathering of wealth has turned the Emirate into a global financial hub, home to the world’s largest private banks and wealth management companies.
Residents can now benefit from a robust and sophisticated private banking industry, which has worked very hard, not only to improve the regulatory framework to match international standards, but also to offer a wide range of financial services so that their wealthy clients don’t have to do business elsewhere.
In theory, there should be enough wealth to go around and Private Bankers and Wealth Managers should be thriving all year round, and there are many articles that would stand by this theory. However, in reality, I would argue the contrary.
The influx of millionaires to the region has also led to a spike in wealth management firms who are looking to get a slice of the pie - As of 2024, there are over 350 wealth management firms in the DIFC alone. Not only are these companies all vying for the same clients, they are also competing with each other to recruit quality staff who can guide the companies forward and separate themselves from the competition.
The industry is so heavily reliant on skilled and experienced professionals that some of the newer firms resorted to offering very attractive compensation packages to new joiners in order to try level the playing field. Wealth Managers would move to fresh companies in the hopes of transferring their clients’ accounts with them and boosting the AUM of their new employer, and for some, this tactic worked extremely well. However, I think one issue has started to appear within the industry; the compensation package is less relevant if the company’s products are not up to scratch.
In order to be a successful Wealth Manager, you must be able to advise your clients and construct their portfolios properly in order for them to benefit financially in the future. This can’t be achieved unless you can offer them the correct products that match with their individual needs. It can’t be argued that the Wealth Management industry is performing well, but there are many examples of people making the wrong move in their career, which can also impact their clients.
I believe the recruitment market in the Wealth Management sector is now correcting itself, and people have become slightly more cautious when considering their next opportunity, which is essential for the long-term success of the industry. As long as companies are making the right choice with who they hire, and Wealth Managers are making the right choice with which company to join, then all parties will enjoy a much smoother transition. Including their clients.
If you are a Wealth Management firm looking for support to find the right hire, or if you work in the industry and you are on the lookout for the next opportunity for you and your clients, please feel free to reach out for my support at: Bcourtney@charterhouse.ae
Brendan Courtney
Senior Consultant- Banking & Financial Services
