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
FINAL LEADERBOARD
1. Jordan Spieth (USA) 65 69 65 69 - 12-under-par
2. Matt Kuchar (USA) 65 71 66 69 - 9-under
3. Li Haotong (CHN) 69 73 69 63 - 6-under
T4. Rory McIlroy (NIR) 71 68 69 67 - 5-under
T4. Rafael Cabrera-Bello (ESP) 67 73 67 68 - 5-under
T6. Marc Leishman (AUS) 69 76 66 65 - 4-under
T6. Matthew Southgate (ENG) 72 72 67 65 - 4-under
T6. Brooks Koepka (USA) 65 72 68 71 - 4-under
T6. Branden Grace (RSA) 70 74 62 70 - 4-under
T6. Alexander Noren (SWE) 68 72 69 67 - 4-under
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
What is double taxation?
- Americans living abroad file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service
- Those obligations apply to millions of Americans residing overseas – estimates range from 3.9 million to 5.5 million – including so-called "accidental Americans" who are unaware they hold dual citizenship
- The double taxation policy has been a contentious issue for decades, with many overseas Americans feeling that it punishes them for pursuing opportunities abroad
- Unlike most countries, the US follows a citizenship-based taxation system, meaning that Americans must file taxes annually, even if they do not earn any income in the US.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Company%20Profile
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Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
RESULTS
5pm: Maiden (PA) Dh80,000 1,600m
Winner: Raghida, Szczepan Mazur (jockey), Ibrahim Al Hadhrami (trainer)
5.30pm: Maiden (PA) Dh80,000 1,600m
Winner: AF Alareeq, Connor Beasley, Ahmed Al Mehairbi
6pm: Arabian Triple Crown Round-2 Group 3 (PA) Dh300,000 2,200m
Winner: Basmah, Fabrice Veron, Eric Lemartinel
6.30pm: Liwa Oasis Group 2 (PA) Dh300,000 1,400m
Winner: AF Alwajel, Tadhg O’Shea, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,600m
Winner: SS Jalmod, Richard Mullen, Satish Seemar
7.30pm: Handicap (TB) Dh100,000 1,600m
Winner: Trolius, Ryan Powell, Simon Crisford
Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Letswork%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EOmar%20Almheiri%2C%20Hamza%20Khan%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20co-working%20spaces%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%242.1%20million%20in%20a%20seed%20round%20with%20investors%20including%20500%20Global%2C%20The%20Space%2C%20DTEC%20Ventures%20and%20other%20angel%20investors%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20about%2020%3C%2Fp%3E%0A
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1