Middle Eastern financial hubs such as Dubai are set to attract more private banks looking to tap the region’s growing volume of high and ultra-high net-worth individuals.

Speaking to MEED, Jim Freeth, senior banker, Middle East, at JP Morgan Private Bank, says many financial institutions are looking to set up offices in the region that can provide potential customers with more personal, face-to-face contact with their banks.

“Many private banks have been growing their regional presence in Dubai, as well as other cities in the region, in order to cater to this growth by having relationship people on the ground to be close to their clients,” he says.

According to the latest forecasts from US consultancy firm McKinsey & Company, regional wealth is expected to reach $3.3 trilllion by 2015, which compares with $2.2 trillion recorded at the end of 2012.

Saudi Arabia accounts for 40 per cent of the total wealth pool in the GCC, followed by the UAE, Kuwait and Qatar, says Mckinsey’s 2013 report.

Yet, despite the growing wealth in the Middle East, most assets continue to be booked offshore in traditional banking centres such as Switzerland and London.

“In addition to the tradition of private banking in those locations and the strong talent pool, they also provide geographic diversification for the families,” Freeth says.

Competition within the Middle East market is tightening with regional banks, such as Dubai-based Emirates NBD, beginning to vie for greater market share.