Switzerland-based multinational investment bank and financial services company UBS Group is planning to foray into the wealth management space in Qatar. Recently, UBS signed a Memorandum of Understanding (MoU) with the country’s Investment Promotion Agency.
The MoU is signed to help UBS establish its wealth management unit in Doha and to collaborate on future opportunities supporting the development of Doha as a leading financial services hub.
The Qatar Financial Centre said in a statement that UBS Group chief executive Ralph Hamers and chairman Axel Weber signed the initial agreement with Ali Al Kuwari, Qatar’s Minister of Commerce and Industry. It is reported that UBS wants to increase its asset size in the Middle East and African region. Besides Qatar, UBS currently has offices in Saudi Arabia, Bahrain, and Dubai in the UAE.
Qatar is one of the world’s largest producers of liquid gas, which made Qatar extremely wealthy and a suitable destination for UBS to set up its wealth management operations. Last month, UBS reported a third-quarter net profit of $2.09 billion, up significantly from $1.05 billion when compared to the same period in 2019.
The increase in net profit was attributed to a rise in net fee and commission income, up 8 percent year-over-year, along with a rise in net interest income. UBS asset management, global wealth management and investment banking units recorded an increase in profits. However, the performance of its personal and corporate banking unit did not yield similar results. Former chief executive Sergio Ermotti left UBS Group with one of the best quarters since he took over nine years ago.