Switzerland topped the overall wealth centre ranking but the report’s lead author, Daniel Kobler, noted how competitive the market has become with smaller centres, like the UAE, leveraging digital capabilities.
The Deloitte International Wealth Management Centre Ranking 2018 compares Bahrain, Hong Kong, Luxembourg, Panama and the Caribbean, Singapore, Switzerland, the UAE, the UK and the US.
All of the jurisdictions specialise in attracting international private clients – a market worth $8.6trn (€7.24trn, £6.3trn).
Deloitte compares the centres based on business environment, provider capability, stability, and tax and regulation.
Swiss dominance
The UAE is also on a level with Hong Kong and Singapore in terms of taxation, against which Switzerland cannot compete. However, the Swiss make up ground on tax with a network of tax treaties which is becoming more important among clients.
Despite suffering outflows for the second consecutive year, Switzerland still ranked as the largest, most competitive and best performing centre.
Kobler said although classical banking privacy was dead, the Swiss were still seen as trusted custodians.
Deloitte estimates the international market fell $700bn between 2010 and 2017. Of all the jurisdictions in the report, the biggest faller was Panama and the Caribbean.
Despite an overall ranking of 5th in competitiveness, Deloitte said the UAE is struggling with assets declining 4% between 2010 and 2017. The only other jurisdictions to see asset declines were Bahrain and Switzerland.
Over the same period, the US made the largest absolute gain but Hong Kong had the largest growth rate of 122%.
The report notes a “growing divide” between “the best and the rest”, with the UAE expected to fall behind with Panama and Bahrain.
The top five nations Switzerland, Singapore, Hong Kong, US and UK plus Luxembourg are deemed to be have been successful since 2010, while the UAE, Bahrain, Panama and the Caribbean “have been much less so”.
However, the report notes the UK and US have lost competitiveness through declining stability. Additionally, Switzerland has lost assets and the cost income ratios of Hong Kong and Luxembourg have worsened.
Top jurisdictions:
Competitiveness
- Switzerland
- Singapore
- Hong Kong
- UK
- UAE
- US
- Luxembourg
- Bahrain
- Panama and Caribbean
Size
- Switzerland – $1.84trn
- UK – $1.79trn
- US – $1.48trn
- Hong Kong – $0.79trn
- Panama and Caribbean – $0.6trn
- Singapore – $0.47trn
- Luxembourg – $0.26trn
- Bahrain – $0.06trn
- UAE – $0.01trn
Rest of the World $1.32trn
Performance
- Switzerland
- Singapore
- Luxembourg
- UK
- Hong Kong
- US
