DUBAI, Sept. 20 (Xinhua) -- Alternative investments account for more than 15 percent of total assets among wealthy investments in the Middle East, the highest share globally, according to study released here on Wednesday by the Dubai International Financial Center (DIFC).
Meanwhile, Islamic asset management continues to grow despite the slump in the price of oil, the study said.
The report released by the biggest banking free zone in the region said that contrary to the perception that real estate plays a major role for wealthy investors in the Middle East, property makes up just under 20 percent of assets of high net worth individuals (HNWI).
The growth of alternative investments has broadened, with asset classes with a long track record such as private equity and hedge funds into newer areas including infrastructure, private lending and insurance-linked securities.
Assets invested in line with Islamic law, Shariah, continue to grow, too, said the study.
"Islamic asset management grew 2.44 percent per year since 2012 to reach 58.89 billion dollars by the end of 2016, despite the economic challenges in the Gulf Cooperation Council(GCC) caused by falling oil prices," the study said.
However, "Shariah-compliant investments have strong demographic demand but remain under-utilized, and despite developments in Islamic finance and growth in Islamic assets, Islamic wealth management remains a niche market," it said.
According to the report, the bulk of the Islamic asset management industry is concentrated in the HNWI-segment in Saudi Arabia and Malaysia.
The DIFC is home to over 457 authorized firms, among them are the four biggest banks from China.
"Chinese banks in the DIFC are in particular active in infrastructure financing in the Middle East," Salmaan Jaffery, the Chief Business Development Officer of DIFC, told Xinhua.
