Boom in female wealth creation driven by business success

In partnership with the Economist Intelligence Unit (EIU), a new global survey of 600 wealthy
individuals published in Barclays Wealth Insights: A Question of Gender, highlights that the vast majority of women in the Middle East and Africa are generating their wealth
independently.

Wealth is largely driven from earnings and ownership of a business (81.5 per cent) or from
personal investments (44.4 per cent). This compares to marriage (29 per cent), divorce (3.7
per cent) and inheritance (25.9 per cent) which the research shows are becoming less
important as sources of wealth. The influence of family is key in the Middle East and Africa,
with nearly 30 per cent of women in the region saying that strong family ties helped them
achieve their wealth and 33 per cent saying that support from an individual family member
was a major contributor.

Women in the Middle East and Africa are also the most likely internationally (63 per cent) to
consider financial security for their children as a key motivation to building a fortune.
Globally, women are less likely than men to invest in the riskier end of the financial spectrum.

Almost half (49.1 per cent) of women in the Middle East and Africa have invested in stocks
and shares over the past three years, but figures are much lower for hedge funds (18.5 per
cent), structured products (7.4 per cent) and derivatives (7.4 per cent).

Soha Nashaat, Managing Director of Barclays Wealth, Middle East and East Africa said:
"Women are purpose-driven in their investment pursuits whereas men tend to look for income
and growth. We have noticed that women alter their approach as they reach their goal and
will often act to protect what it is they have built up. But equally, when women are in the
mindset that 'this is for investment and saving' they are very diligent and plan well."

The survey supports the view that women are often more thoughtful and this is illustrated in
the report when asked how they would choose to spend a cash windfall of US$200,000. The
majority of men (18.2 per cent) said they would prefer to put the money in the stock market,
but women in this region have a greater propensity to avoid high risk, choosing instead to invest in savings products (22.2 per cent), property (18.5 per cent) and their personal pension (18.5 per cent).

Interestingly, with a higher windfall of US$2m, women select the stock market, savings
products or their pension (all at 14.8 per cent) as the three main areas they would choose to
invest. In comparison men would be most likely to invest in property for investment (17.4 per
cent), property for personal use (13.7 per cent) or a private company (14 per cent).

Ms Nashaat concludes: "While this is not necessarily a case of providing women with a different service or products, it is shows how crucial it is that the wealth management industry
understands that the motivations and needs of women have changed. Financial institutions
need to appreciate that the investment approach of men and women can be different, and
that a one size fits all approach to managing this increasingly influential audience may not
work."