Bank of Singapore, one of Asia’s leading private banks, is setting its sights on the Middle East as a key growth region. The bank aims to significantly increase its private banking assets in the region, targeting the Middle East to contribute up to 20% of its total assets under management (AUM) within the next three to five years, a substantial rise from the current 10%.
Ranjit Khanna, head of private banking for Europe and the Middle East and CEO of the bank’s Dubai hub, emphasized the strategic importance of the Middle East, particularly the UAE, in the bank’s expansion plans. Dubai has emerged as a major destination for global millionaires, driven by favorable government policies, a business-friendly environment, and attractive residency programs like the golden visa.
Bank of Singapore’s expansion into the Middle East is part of a broader trend among wealth managers, particularly in Asia, who are increasingly establishing a presence in Dubai. This shift is fueled by growing diplomatic ties between China and the Middle East and the rising demand for wealth diversification among high-net-worth individuals in the region.
As of the end of September 2023, the Bank of Singapore’s AUM stood at $116 billion, up from $20 billion in 2010, with the majority of assets currently managed out of its Singapore and Hong Kong hubs. The Middle East, however, is quickly gaining ground as a crucial market for the bank, with the UAE’s role as a cross-border wealth hub becoming increasingly prominent. The UAE saw the highest growth in cross-border wealth inflows among Middle Eastern countries, driven by investments from Saudi Arabia and other prosperous markets in the region.
Khanna believes that the Middle East and Asia will be dominant regions in wealth management over the next decade, further solidifying the bank’s strategic focus on these areas as key drivers of growth.
This aggressive expansion strategy underscores the bank’s commitment to enhancing its presence in the Middle East, leveraging the region’s economic dynamism and the burgeoning wealth of its high-net-worth population.
