Hossam Alsaady has left his role as head of the Middle East and North Africa at HSBC Private Bank in the UK to open his own wealth management boutique, Wealth Manager can reveal.
The wealth management business will be called Godolphin Wealth Advisors, run as a family office focused on Middle Eastern clients. Wealth Manager understands the intention is to launch in May, subject to FCA approval.
Alsaady joined HSBC in 2010, where he also served as head of Saudi private banking. Prior to that he worked at NCB Capital, a Saudi bank, as head of high net worth wealth management and then head of strategy.
According to the latest McKinsey Global Private Banking Survey, Middle Eastern high net worth individuals’ wealth will hit £2 trillion by 2015, up from £1.3 trillion in 2012. Of that, Saudi Arabia accounts for around 40% of the total wealth pool in the Gulf Cooperation Council.
The consultancy noted that approximately 70% of these wealthy individuals’ assets are held offshore, though, with the majority booked in London and Switzerland.
The McKinsey research also highlighted the attractiveness of the Middle East for the wealth management business: the industry’s average profit margin there was 68 basis points in 2012, compared with 23 basis points in Western Europe. This is despite cash still being the dominant asset class for high net worth investors in the region.
McKinsey nevertheless argued that the key to winning Middle Eastern clients would be ‘the shift from providing a red-carpet banking service to offering a true wealth management proposition’.