Global real estate consultancy Knight Frank has published its annual Wealth Report. The report shows the countries which have recorded the biggest increase in very wealthy clients.
«Wealth Creation is back.» This is the key message of this year’s edition of the Wealth Report from Knight Frank, which has been published since 2007.
After wealth creation was severely hampered by the unexpectedly elevated interest rates in 2022, 2023 saw a return to stable accumulation.
Switzerland is Front Runner in Europe
More specifically, the number of Ultra-High-Net-Worth Individuals (UHNWI), for whom the report stipulates a net worth threshold of 30 million dollars, has increased by 4.2 percent from 601,300 to 626,619 persons.
In the regional observation, North America is in front with a growth of 7.2 percent, followed by the Middle East with 6.2 percent. Europe recorded a growth of 1.8 percent. Within Europe, Switzerland tops the list with 5.2 percent growth. Latin America is the only region to see a drop in the number of UHNWI (decrease of 3.6 percent).
Turkey and the USA Take Top Spots
With regard to individual countries, Turkey sits in first place with a percentage growth of 10 percent, followed by the United States with 8 percent.
These findings are linked with mixed feelings for the Swiss private banks. Both of these countries present particular challenges for compliance, each for different reasons.
Following the tax dispute, many Swiss banks have pulled out of business with U.S. clients. Turkey is sometimes viewed as a risk based on its ongoing economic relationships with Russia.
Booming Turkey Business – Especially for UBS
Finews.ch has spoken to those familiar with business in Turkey, who confirm excellent market dynamics. On the one hand, this can be explained by a dynamic development of the Turkish economy, in spite of inflation of over 50 percent. On the other hand, many wealthy Russians, Ukrainians, and also entrepreneurs from countries such as Kazakhstan or Azerbaijan have recently discovered Turkey to be an attractive place of residence or a good place to set up company headquarters.
Swiss Private Banks are «All In». The market leader in private banking with clients from Turkey is UBS, which inherited a team of around a dozen advisors during the Credit Suisse merger. However, practically all of Switzerland’s top 10 private banks are working the market. Names which often come up include Union Bancaire Privée (UBP), Bank Rothschild or Julius Baer.
The Headhunters are Out
From headhunter circles, we are hearing that even small and medium-sized private banks are becoming more interested. Several of them are looking for client advisors with Bosporus-based clients on their books.
The data from the Knight Frank Wealth Report comes from a global survey of 600 private banks which between them manage 3 trillion francs of wealth for UHNWI.
