Muscat – Oman’s financial wealth will experience a sturdy compound annual growth rate of 5.2 per cent over the next five years, according to a new report released by Boston Consulting Group (BCG).

As per BCG’s Global Wealth 2022 report, Oman’s financial wealth is expected to rise from US$69.3bn in 2021 to a high of US$89.3bn in 2026.

“We see the Middle East and Africa, including Oman’s, financial wealth growing year after year, despite a tremulous global market,” Mustafa Bosca, managing director and partner at BCG, said in a press statement.

He said Oman’s financial wealth shows positive prospects having grown 4 per cent every year since 2016 to US$69.3bn in 2021 and is expected to continuously grow to 2026.

Additionally, approximately 12 per cent of Oman’s wealth is derived from ultra high net-worth (HNW) segment in 2021, which are individuals who are worth more than US$100mn, Bosca added.

Elsewhere in GCC, BCG expects UAE’s financial wealth to grow by 6.7 per cent annually over next five years, rising from US$0.7tn in 2021 to a high of US$1tn in 2026. It predicts Saudi Arabia’s financial wealth to grow by 4.8 per cent annually, rising from US$1.3tn in 2021 to US$1.6tn by 2026.

“The wealth management agenda is getting more crowded—and the items on it more urgent. Net-zero, crypto, personalization, and digitization are not merely arenas that leaders can simply consider. They are imperatives whose outcomes will determine which (wealth management) institutions grow client share over the next five years. The most important question facing wealth managers right now is not which initiatives to prioritize—but how best to execute on all of them,” Bosca concluded in his statement.

As per the BCG report, global financial wealth grew by a staggering 10.6 per cent from 2020 to 2021—the fastest rate in over a decade. The double-digit growth created US$26tn in new wealth and took total global financial wealth and the real asset pool close to US$530tn.

Strong global equity markets helped propel the gains last year. Driven by healthy corporate profits, the S&P 500 index soared by 26.9 per cent in 2021, a remarkable rise given the record-setting levels of 2020. Real assets were another source of growth.