Saudi Arabia is 'key' for UBS's business strategy in Middle East: executive

Abdallah Najia, Head Wealth Management Saudi Arabia  

Switzerland-based UBS Global Wealth Management is currently focusing on sustainable growth in Saudi Arabia - a key market in the firm’s business strategy.

Being active in wealth management, asset management, and investment banking, the firm currently operates out of two advisory offices in Dubai and Riyadh with more than 60 employees.

In an exclusive interview with Argaam, Abdallah Najia, head - Wealth Management, Saudi Arabia at UBS Global Wealth Management, talks about the economic and demographic transformations happening all over the Middle East and how the firm is in the forefront of embracing those changes.

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Here’s the full interview:

Q: Give us a brief about your wealth management operations and your growth curve in the Arabian Gulf over the years?

A: UBS has covered the Middle East region for several decades and we do so from several jurisdictions, both locally and internationally. As we recognize the importance of being close to our clients, we have doubled the number of employees in less than three years in Dubai and are now focusing on sustainably growing in Saudi Arabia - a key market in our business strategy.

We remain confident in our growth plans and have established several sponsorships in the region that align with our business values, such as the Saudi Art Council partnership for the contemporary art platform Jeddah Arts 21 ,39 and the Shara Art Fair in Jeddah.

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Q: What are the key challenges and potential opportunities for wealth management firms in the region, especially in Saudi Arabia, over the next 3-5 years?

A: We think the region has a positive outlook. There are economic and demographic transformations happening all over the Middle East. Women and millennials are increasingly visible and are contributing to the overall trend of new and dynamic pools of wealth.

We are working hard to be ready for these new diversifications so that we can engage with our clients in a meaningful and global way, especially since the landscape in our industry and the emerging markets within which we operate are extremely competitive.

Q: What are some of the main underlying reasons for being a wealth management player in Saudi Arabia?

A: In short, the dynamics of the market and the fact that it is the largest in the region. A big part of the population is young and very entrepreneurial and we have seen elsewhere that clients in this segment focus most of their time of on growing their businesses. This means they need trusted partners that in parallel, can manage their wealth.

Read: Saudi asset managers post 2% rise in Q3 AUMs

Q: To what extent do you think there is a talent shortage in wealth management in Saudi Arabia, and what can firms do to tackle it?

A: We have found some great talent in Saudi Arabia. To further deepen this talent pool, it would be great to replicate tried and tested models from Switzerland and get more young people interested in financial services through solid apprenticeship and graduate programs.

Q: Do you believe the recent dip in oil prices would impact wealth management in Saudi Arabia? If yes, what does the industry need to do to face this challenge?

A: We expect the oil market and crude oil prices to remain volatile over the coming years, but our business is built to be sustainable and deliver good outcomes for our clients over many economic cycles.

Write to Sunil Kumar Singh at sunil.kumar@argaamplus.com