The Family Office Founder Speaks to Argaam about the Saudi Wealth Management Market

In an exclusive interview with CEO and Founder of The Family Office, Abdulmohsin Al Omran reveals that Saudi Arabia will be a hub for wealth management products and services in the Middle East. He added that while the wealth management market in the GCC has made great progress in a relatively short period, there is great potential for sector growth over the coming term.

With regards to the size of the wealth management market in the Kingdom, Al Omran stated: "While we do not have definitive numbers for the value of wealth in the GCC or in Saudi Arabia in particular, estimates based on reports and figures are more than US$1 trillion.”

The sector remains small in the region and has not yet reached the expertise found in other countries such as European countries and the United States. "However, major developments are upcoming," the official said, noting that one of the biggest challenges to development is the establishment of funds and laws that protect the investor.

Another major challenge is developing the workforce to assume responsibility for protecting the investor instead of being just marketers interested in personal gain and annual bonuses.

"If we look at the financial centers of the world, such as London, New York, Zurich, or Hong Kong, we find a strong caliber of highly experienced human resources in this sector”, added Al Omran.

Moreover, he believes that development must come on two fronts. The first front is the regulatory aspect through establishing governance, laws, and policies. The second front is increasing investor awareness. Many investors try to generate fast returns, which reflects their inexperience in long-term planning for successful investment.

"If we look at the gains in any market worldwide over the past 20 or 30 years, the average would be 7 to 8% annually." he added. “However, most investors believe they can generate 7 to 8% per month. Even if it happens for one month, two months or a year, such returns are unsustainable and involve extremely high risk. Sustainable returns are only possible by following a long-term investment strategy for growing and preserving wealth.”

Some investors borrow to achieve higher returns. Al Omran advises against this practice stating that loans are the greatest threat to wealth. The Family Office avoids borrowing in its investment policy and always advised clients against it. Find out more about the investment philosophy of The Family Office.

Watch the full interview with Abdulmohsin Al Omran, Founder and CEO of The Family Office, a company that has been preserving and growing the wealth of individuals, families, and institutions in the region for 17 years.

Disclaimer:

The Family Office International Investment Co. | P.O. Box 9072, Riyadh 13512 | CR 1010608698 | Tel: +966 11 250 7720.

A joint stock closed company owned by one person | Paid-up capital SR2 million | Licensed by the Capital Market Authority (no. 17-182-30) The Family Office International Investment Co. only offers products and services to ‘accredited investors’ as defined by the Capital Market Authority.