Bahrain's total personal wealth soared to $166 billion in 2024, driven by exceptional growth in real assets, while financial institutions face a crucial shift towards organic growth strategies, according to the Global Wealth Report 2025 by Boston Consulting Group (BCG).

The kingdom’s financial wealth rose 4.3 per cent from $73bn to $76bn between 2023 and 2024. However, real assets (such as property) saw a significant surge of 14.9pc, climbing from $78bn to $90bn in the same period. Total liabilities also increased by 9.6pc to $5.46bn.

The report projects continued robust expansion for Bahrain’s wealth through 2029.

Financial wealth is forecast to grow steadily at a Compound Annual Growth Rate (CAGR) of 2.9pc, reaching $88bn by 2029.

The exceptional growth of real assets is expected to continue with a 9.1pc CAGR, expanding to $138bn by 2029.

Liabilities are also projected to rise to $8bn by 2029 (8.1pc CAGR).

Investable wealth, the most liquid segment, is forecast to grow from $55bn in 2024 to $64bn by 2029 (3.1pc CAGR), with non-investable wealth set to pick up pace post-2024, suggesting dynamic changes in asset allocation and valuation across the kingdom.

In terms of asset classes, equities ($30bn) and currency and deposits ($20bn) dominate Bahrain’s 2024 portfolio, with projected growth to $34bn (2.2pc CAGR) and $23bn (2.7pc CAGR) respectively by 2029.

Bonds show promising expansion from $3bn to $4bn (6.1pc CAGR), while life insurance and pensions are set for modest growth to $1bn (1.6pc CAGR). Other substantial assets, reflecting diversified portfolios, stand at $22bn in 2024 and are projected to increase to $27bn by 2029 (3.8pc CAGR).

The report stresses that while wealth is growing, the dynamics behind it are fundamentally shifting. Wealth management firms can no longer rely heavily on market performance or M&A to sustain growth.

Lukasz Rey, managing director and partner at BCG, commented: “The key to success today is no longer merely about gaining market exposure or hiring senior bankers; it’s about fostering internal growth. Companies that strategically prioritise adviser development, strengthen their brand identity, and embrace next-generation client strategies are outpacing their competitors – not only in revenue generation but also in achieving higher valuation multiples.”

The firms gaining traction are those investing in core capabilities: a clearer market presence, more deliberate client acquisition, better-equipped advisers, and earlier, more relevant engagement with rising generations. Technology plays a central role in scaling these capabilities.

The report identifies four high-impact levers for organic growth: Brand Differentiation, building trust through clear identity and digital marketing; GenAI-driven client acquisition, using AI to profile and personally engage high-potential prospects; data-driven recommendation systems, integrating data for a comprehensive client view; and next-gen client engagement, personalising the journey for digital-native, younger investors.

“Companies that adopt AI for prospecting, tailor the onboarding experience, and leverage digital tools to enhance productivity are poised to lead the next growth surge. While wealth generation is on the rise, the real test for wealth managers lies in their ability to seize these opportunities,” Mr Rey concluded.

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