NBK Wealth CEO, Faisal Al-Hamad in Forbes Middle East
This story appeared in Forbes Middle East May 2024 issue
Many people aspire to create wealth, but for the ultra-wealthy, just as important is enhancing and safeguarding their substantial financial assets. This is where the expertise of wealth managers becomes invaluable. Kuwait-headquartered NBK Wealth—part of the larger NBK Group, a banking group with a market cap of $23.4 billion as of April 2024—has been growing fast since launching a new strategy in 2021.
NBK Wealth today combines NBK Group’s private banking business and asset management services under one brand, aiming to be a client-centric business. This includes the NBK Group’s asset management arm, the Watani Investment Company—also known as NBK Capital—as well as other investment teams in other jurisdictions and legal entities. “We take a holistic approach, considering the clients’ unique circumstances, to develop customized solutions that fit their needs,” says Faisal Al-Hamad, CEO of NBK Wealth. The group had assets under management exceeding $20 billion as of Q1 2024, up from nearly $16 billion in 2021. Meanwhile, its personal financial assets under advisement, including deposits, advisory, and custody for brokerage, grew from about $35 billion in 2021 to over $39 billion at the end of Q1 2024.
The Middle Eastern market, where the company is headquartered and primarily operates, is the secondfastest-growing market for UHNWIs, following North America. In 2023, the Middle East saw a 6.2% year-onyear increase in its UHNWI population, reaching 18,790 individuals. By 2028, this figure is projected to climb to 24,102, according to Knight Frank’s The Wealth Report.
NBK Wealth usually deals with clients with net worths of $1 million or more, yet this rule varies depending on many factors, including the individual’s location. The Arab region has maintained a stable number of billionaires in recent years, with Forbes recording 20 Arab billionaires with a combined net worth of $53.7 billion in 2024. According to Al-Hamad, the number of billionaires in the region is underreported because most prefer to stay private, but private sector investment, coupled with ongoing government-backed initiatives to develop new industries, boost venture capital, and facilitate new business formation, is the key to creating and elevating regional wealth. “We need to support innovation in the region. As we develop the market, the economies grow, and we will start seeing an increase in the numbers of wealthy clients,” he adds.
“The Middle East offers a favorable business environment with low taxes and business-friendly policies that attract and retain wealthy individuals,” says Achraf Drid, CEO for MENA at trading platform XTB. “The region’s economy is significantly bolstered by its vast oil and natural gas reserves as well as its strong economic potential, providing a stable and lucrative revenue stream that sustains its population’s wealth.”
Both Saudi Arabia and the U.A.E., MENA’s largest economies, are home to a significant number of millionaires. According to the UBS Global Wealth Report 2023, Saudi Arabia had 354,000 millionaires in 2022, while the U.A.E. had 221,000. Total household wealth in Saudi Arabia reached $2.3 trillion in 2022, surpassing the U.A.E.’s $1.2 trillion.
NBK Wealth has strategic plans in these two prominent markets. Saudi Arabia, in particular, is a key market, closely following its home market of Kuwait. Building on its successful expansion in Saudi Arabia nearly five years ago, NBK Wealth now plans to roll out new products tailored for the kingdom. It’s also planning to expand its service offerings in the U.A.E. by opening an office there in 2025, pending market readiness and regulatory approvals. “We want to make sure that we’re able to serve our clients in Saudi Arabia efficiently based on their needs. We will continue to invest in our team here on the ground, too,” says Al-Hamad. New domestic Saudi products include access to money markets, fixedincome services, and real estate.
Outside of the GCC, the group also plans to offer hedge funds, private equity secondary funds, and infrastructure funds to clients in Geneva, where NBK Wealth already has a mature investment product platform.
Given current geopolitical tensions in the Middle East and globally, the company adopts a proactive approach when addressing HNWI, UHNWI, and institutional clients’ concerns. “We emphasize the importance of regularly reassessing one’s risk profile, whether at the start of each year or in response to significant changes,” asserts Al-Hamad.
Steven Rees, Managing Director and Head of Investments for the MENAT region at JP Morgan Private Bank, believes that a balanced approach is key in these times. “We’re advising our clients to take a balanced approach to investing. We see a lot of potential in the fixed income markets, based on where interest rates are today and where we expect that they will be going in the near to medium term,” he explains.
NBK Wealth, meanwhile, has observed some recent shifts in client preferences. “There’s continued interest in what’s happening in Saudi in terms of the country’s development and the growth of the market. Our Middle Eastern clients, even international clients, are showing more interest in the Saudi market,” says Al-Hamad. The CEO also explains that clients appear to be shifting slightly from deposits to money market funds. With interest rates increasing during 2022 and 2023, some are expressing interest in transitioning from current accounts to money markets or fixed deposits, but NBK Wealth’s clients generally prefer to maintain liquidity.
They also seem undeterred by the emergence of fintech startups in the regional market, such as the U.A.E.-based Sarwa and Egypt’s Thndr, which specialize in assisting individuals with investment management. “The individuals that are attracted by the fintechs are different from our client base, which tends to be HNWIs and UHNWIs who still prefer to deal with a bank,” says Al-Hamad.
Al-Hamad is well-versed in NBK’s client base, having been with the company for over 17 years. He joined the NBK Group in 2007 as part of the alternative investment team, focused on investing in private equity and private credit in MENA. He became CEO of NBK Capital in 2015, where he began setting a strategy for wealth that resulted in the creation of NBK Wealth in 2021 as an umbrella company for the group’s client-centric businesses.
Today, NBK Wealth employs over 410 people across all its locations and entities. This figure will increase in line with the implementation of new expansion plans in the U.A.E. and Qatar, in addition to boosting operations in Saudi Arabia. It has over 125 investment professionals and traders, with investment teams focusing on managing equities, fixed-income, and money market investments, as well as creating new investment products. Traders are primarily related to the brokerage operations in Kuwait, the GCC, and international markets, whereas more than 75 relationship managers aim to be as close to the client as possible, anticipating their needs and where the market is heading.
“The NBK Wealth team on the ground understands the local culture,” emphasizes Al-Hamad. “Trust is the most important thing in our business.”
