South Asia's Wealth Diaspora: Looking Beyond Non-Resident

South Asia’s Wealth Diaspora: Looking Beyond Non-Resident Indians

Industry Forecast Report

Reference code: IS0208MR

Published: April 2012

BRICdata John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) 20 7936 6400 Fax: +44 (0) 20 7336 6813

www.bricdata.com

EXECUTIVE SUMMARY

1 Executive Summary India

Population and market size

 The population of overseas Indians, including non-resident Indians (NRIs) and persons of Indian origin (PIOs), reached XX.X million in 2011, with the population of NRI millionaires reaching approximately XXX,XXX in the same year. The US accounts for the largest proportion of NRI millionaires, followed by the UK, the UAE, Canada, Hong Kong, Singapore and Indonesia.

 The value of the worldwide wealth management market for NRI millionaires increased from US$XXX.X billion in 2007 to US$XXX.X billion in 2011, recording a compound annual growth rate (CAGR) of X.XX% during the review period (2007–2011). This value is expected to increase from US$XXX.X billion in 2012 to US$XXX.X billion in 2016, registering a CAGR of XX.XX% over the forecast period.

 The value of NRI inward remittance increased from US$XX.X billion in 2007 to US$XX.X billion in 2011, registering a CAGR of XX.XX% during the review period. India‘s economic growth and attractive returns from the country‘s capital markets are considered the main drivers of this growth in NRI remittance to the country. The country receives NRI remittance from across the world, including the Gulf countries, North America, South America, Europe, Africa, and East Asia. Investment trends and drivers

 India‘s strong economic growth remains the key driver for the increasing investment of wealth by overseas Indians in their home country. Overall, India‘s GDP recorded a CAGR of X.XX% during the review period to reach a value of US$X.XX trillion in 2011, with this growth driven by increased investment and consumption. In addition, the country‘s government has undertaken several initiatives designed to stimulate the country‘s overall economic growth. These initiatives include infrastructure development, reforms in the country‘s power generation industry, and investment in strengthening the country‘s telecommunications and internet networks. India‘s robust economic growth has made the country a preferred destination for NRI investment, with this investment concentrated in the Indian stock and real estate markets.

 With a worldwide NRI base of XX.X million, India already has the world‘s second-largest non-resident nationals‘ population. The country‘s NRI millionaire count of XXX,XXX is also among the highest in the world, with this group having average wealth of over US$X million. Moreover, the total wealth of NRI millionaires expected to increase by X.X% in 2011-2012, and the NRI population is currently growing by X% per annum. This equates to an annual growth of XXX,XXX people, a growth that is expected to increase opportunities for wealth management services providers.

 The Indian capital markets are stringently regulated by the Securities and Exchange Board of India and the Reserve Bank of India (RBI). In order to protect investors‘ interest and promote the Indian capital markets, these agencies have enacted several far-reaching reforms. These have resulted in a deep market where liquidity is not a major concern for individual investors. India‘s well-regulated and deepening capital market has encouraged the NRI population to invest in the country.

 The Indian government has implemented several initiatives in order to encourage NRIs to invest in India. For example, the Ministry of Overseas Indian Affairs (MOIA) is tasked with forming partnerships with overseas Indian investors in order to encourage them to invest in India. The ministry also seeks to make it easy for overseas Indians to carry out business in India, including the provision of appropriate advisory services through knowledge partners and helping to form partnerships between Indian companies and overseas Indian businesses. Competitive landscape

 Although the NRI wealth management market is currently dominated by foreign banks such as Citibank and HSBC, Indian banks such as ICICI, HDFC and SBI are gradually showing an increased interest in the market. Indian banks are also expanding their presence overseas in an attempt to take advantage of the larger NRI market that exists outside India. This increase in competition is expected to help serve the varying demands of the NRI population and increase market penetration. Challenges

 Just as elsewhere in Asia, the Indian wealth management market faces challenges due to the lack of qualified professionals to manage the assets of wealthy individuals.

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 2

EXECUTIVE SUMMARY

Pakistan Population and market size

 The population of overseas Pakistanis, including non-resident Pakistanis (NRPs) and persons of Pakistani origin (PPOs) reached eight million in 2011, with the population of NRP millionaires reaching approximately XX,XXX in the same year. With X,XXX NRP millionaires living in the country, the UK has the largest share of NRP millionaires, followed by the US, the Persian Gulf countries and Canada.

 The value of the worldwide wealth management market for NRP millionaires increased from US$XX.X billion in 2007 to US$XX.X billion in 2011, registering a CAGR of XX.XX% during the review period. This value is expected to increase from US$XX.X billion in 2012 to US$XX.X billion in 2016, registering a CAGR of XX.XX% over the forecast period.

 During the review period, the total value of inward NRP remittance increased from US$X.X billion in 2007 to US$XX.X billion in 2011, registering a CAGR of XX.XX% during the review period. Pakistan receives NRP remittance from countries worldwide, including the US, the UK, Saudi Arabia, the UAE, other Gulf Co-operation Council (GCC) countries, and other European and Asian countries. Investment trends and drivers

 With Persian Gulf countries accounting for XX% of the total non-resident Pakistani population, Gulf-based NRPs are one of the largest markets for wealth management companies. In terms of proportion of total NRP population, the Persian Gulf countries are followed by the UK and the US. Furthermore, Saudi Arabia and the UAE both employ a considerable number of Pakistani workers. Consequently, many leading domestic and international banks are focusing on these customers in order to expand their wealth management businesses.

 Pakistan‘s GDP increased from US$XXX.X billion in 2007 to US$XXX.X billion in 2011, registering a CAGR of X.XX% during the review period. Over the forecast period, this growth is expected to accelerate to a CAGR of X.XX%, with a projected value of US$XXX.X billion in 2016. Furthermore, the country‘s foreign exchange reserves also increased during the review period, recording a CAGR of X.XX% during the review period to reach a value of US$XX.X billion in 2011. This growth, which has been supported by the strong performance of the country‘s economic indicators, has increased the overseas Pakistani population‘s business confidence in their home country and is expected to have a positive impact on the NRP wealth management market in the country.

 The depreciation of the Pakistani currency against the US dollar during the review period resulted in a significant increase in the amount of remittance sent to Pakistan. Specifically, Pakistani currency depreciated from PKRXX.X against the US dollar in 2007 to PKRXX.X against the US dollar in 2011, causing the total remittance sent to the country to increase from US$X.X billion in 2007 to US$XX.X billion in 2011 and record a CAGR of XX.XX% during the review period. As well as family needs, these remittances are predominantly used for bank deposits, and investment in equity, bond and properties. Through careful timing of remittance, NRPs can take advantage of favorable currency exchange rates. Competitive landscape

 The Pakistani NRP wealth management market is still going through an initial phase of rapid growth. There are number of international and domestic banks operating in the market, including IGI Investment Bank Ltd, BMA Capital, JS Bank Limited, Deutsche Bank, United Bank Limited, HSBC, and Standard Chartered Private Bank. Due to the increasing number of banks catering to a limited number of clients, competition in the market has intensified considerably. In order to remain competitive, companies in the market have therefore undertaken several marketing and expansion strategies, such as offering innovative products and services, forming alliances with money transfer companies in order to increase the efficiency of the remittance process, and improving branchless banking. The growing competition in the market is expected to help serve the varying demands of the NRP population and increase market penetration. Challenges

 The political unrest and increasing threat of terrorism in Pakistan have negatively impacted all the country‘s industries. As a result of these factors, foreign investors are reconsidering their investment in the country, fearful of increasing political instability and their employees‘ safety. This is evidenced by the fact that new inflows of foreign investment into the country declined from US$X.X billion in 2007 to US$X.X billion in 2011, registering a CAGR of - XX.XX% during the review period. With the country‘s political unrest expected to continue, foreign investment into Pakistan may fall further during the forecast period.

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 3

EXECUTIVE SUMMARY

Bangladesh Population and market size

 The population of non-resident Bangladeshis (NRBs) reached X.X million in 2011, with the country‘s NRB millionaire population standing at approximately X,XXX in the same year. The Persian Gulf countries account for the largest number of NRB millionaires, followed by the UK and the USA.

 The value of the worldwide wealth management market for NRB millionaires increased from US$XX.X billion in 2007 to US$XX.X billion in 2011, recording a CAGR of X.XX% during the review period. Overall, the size of NRB millionaires‘ wealth is projected to record a CAGR of X.XX% over the forecast period, to reach a projected value of US$XX.X billion in 2016.

 The total amount of NRB remittance sent to Bangladesh recorded robust growth during the review period. However, this growth is slowing rapidly with, for example, the 2011 annual growth of X% being less than half than the 2010 annual growth of XX.X%. In 2011, NRB remittance totaled US$XX.XX billion, which is almost twice the 2007 remittance total of US$X billion. Over the forecast period, the increasing number of Bangladeshis leaving their home country is expected to continue to drive remittance growth, with total remittance expected to record a CAGR of XX.XX% and reach a projected total of US$XX billion in 2016.

 Saudi Arabia accounts for the highest share of remittance to Bangladesh, with a XX.X% share. It is followed by the UAE, with a XX.X% share; and the US, with a XX.X% share. Investment trends and drivers

 There are multiple options for NRBs to invest in domestic Bangladeshi banks. Some of these investment options include Non-Resident Foreign Currency Deposit-NFCD, Wage Earner‘s Development Bond, and Non-resident investor‘s Taka account (NITA).

 The Bangladeshi government provides special incentives to NRBs in order to encourage investment in the country. It also enforces a XX% NRB quota in all initial public offerings.

 With X.X million NRBs, the UK accounts for almost XX% of the total NRB population. Attracted by government initiatives and the growth of the Bangladeshi stock market, NRBs living in the UK are increasingly looking for investment opportunities in their home country.  The increasing number of Bangladeshis seeking overseas employment is a key factor driving the growth of inward remittance. In 2010, XXX,XXX Bangladeshis migrated overseas for employment opportunities, a figure that increased to XXX,XXX in 2011. Competitive landscape

 In Bangladesh, leading domestic banks such as Rupali Bank, AB bank, City Bank and National Bank offer remittance services and savings and demand deposit accounts to NRBs. Among foreign banks, HSBC‘s Amanah wealth management services are available in Bangladesh.

 Islami Bank handles the highest share of inward remittance in Bangladesh, with a XX% market share; followed by Agrani Bank and Sonali Bank, who each account for a XX% share. Standard Chartered Bank and HSBC are the leading foreign commercial banks in this area, with the former accounting for a X.X% share and the latter accounting for a X.X% share. Challenges

 The majority of Bangladeshi banks still do not provide wealth management services, with such services only offered by a small number of the country‘s larger banks.  Some of the factors adversely impacting Bangladesh‘s trade and investment climate include infrastructure limitations, high levels of corruption and political instability.

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 4

EXECUTIVE SUMMARY

Sri Lanka Population and market size

 The population of overseas Sri Lankans, including non-resident Sri Lankans (NRSLs) and persons of Sri Lankan origin (PSLOs) reached X.X million in 2011. Singapore accounts for the highest proportion of this total, with XXX,XXX overseas Sri Lankans in 2011; followed by Canada, with XXX,XXX; the UK, with XXX,XXX; and the UAE, with XXX,XXX.

 The value of the worldwide wealth management market for NRSL millionaires increased from US$XX.X billion in 2007 to US$XX.X billion in 2011, recording a CAGR of XX.XX% during the review period. This value is expected to increase from US$XX.X billion in 2012 to US$XX.X billion in 2016, recording a CAGR of XX.XX% over the forecast period.

 The total NRSL inward remittance increased from US$X.X billion in 2007 to US$X.X billion in 2011, registering a CAGR of XX.XX% during the review period. This growth has been supported by the increasing political instability in the Middle East, which encouraged large numbers of Sri Lankans to move overseas for permanent jobs. Investment trends and drivers

 Sri Lanka‘s strong and resilient economic growth was the key factor behind the substantial inflows of NRSL wealth into the country during the review period. With further investment planned in the areas of education, commerce, maritime and aviation infrastructure, and power generation, this considerable foreign capital investment is expected to continue over the forecast period.

 The government-supported launch of Treasury Bills and Treasury Bonds specifically designed for non-resident Sri Lankans has also supported the growth of NRSL investment into the country.

 With the NRSL populations increasing rapidly, Sri Lankan banks have begun expanding into foreign countries in order to facilitate the easy transfer of funds into the country. This expansion is being conducted in two ways, with Sri Lankan banks either opening branches in foreign countries or entering into partnerships with foreign banks where the foreign bank acts as a corresponding bank of the Sri Lankan bank. Competitive landscape

 The Sri Lankan banking industry features a large number of domestic and international financial institutions offering various financial services and related products especially designed to meet the remittance and investment needs of non-resident Sri Lankans. Bank of Ceylon (BOC), National Savings Bank (NSB), HSBC, and Commercial Bank of Ceylon PLC are among the leading financial institutions offering attractive services targeted towards the needs of NRSLs.

 In order to attract NRSL customers, Sri Lanka‘s state-owned and private commercial banks are offering attractive rates on Non-resident Foreign Currency (NRFC) Accounts. On March 1, 2012, the People's Bank of Sri Lanka launched new and innovative People‘s Bank ‗Ethera Isura‘ NRFC savings accounts that include monthly and annual prize draws. These institutions are also linking NRFC accounts with pension schemes. Challenges

 The main challenge for the Sri Lankan wealth management market is the limited availability of effective wealth management companies and the lack of the technical expertise required to manage the wealth of foreign nationals.

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 5

TABLE OF CONTENTS

1 Executive Summary ...... 2 2 South Asia’s Wealth Diaspora – Country Benchmark Comparison ...... 11 2.1 Market Environment ...... 11 2.2 Share of Wealth by Nationality ...... 12 2.3 Comparison of Remittances across South Asia ...... 13 3 India ...... 14 3.1 Market Environment ...... 14 3.1.1 GDP at constant prices ...... 14 3.1.2 Inflation ...... 15 3.1.3 Market capitalization ...... 16 3.2 NRI Population...... 17 3.2.1 Number of non-resident Indians ...... 17 3.2.2 Number of non-resident Indian millionaires ...... 19 3.2.3 Wealth of non-resident Indian millionaires ...... 20 3.3 Remittance ...... 27 3.4 Investment Trends and Drivers ...... 29 3.4.1 RBI norms expected to encourage NRI investment in India ...... 29 3.4.2 NRI demographics ...... 31 3.4.3 Growing base of NRIs ...... 31 3.4.4 Well-regulated capital markets ...... 31 3.4.5 India‘s economic growth ...... 31 3.4.6 Proactive FDI policy ...... 32 3.4.7 Favorable currency exchange rates expected to encourage investment of NRI wealth in India ...... 33 3.4.8 Competition ...... 33 3.5 Government Initiatives Designed to Attract the Wealth of India‘s Non-Resident Population ...... 34 3.6 Competitive Landscape ...... 36 3.6.1 Overview of leading companies ...... 36 3.6.2 Marketing and expansion strategies ...... 40 3.7 Challenges...... 45 4 Pakistan ...... 49 4.1 Market Environment ...... 49 4.1.1 GDP at constant prices ...... 49 4.1.2 Inflation ...... 50 4.1.3 Market capitalization ...... 51 4.2 NRP Population ...... 52 4.2.1 Number of non-resident Pakistanis ...... 52 4.2.2 Number of non-resident Pakistani millionaires ...... 54 4.2.3 Wealth of non-resident Pakistani millionaires...... 55 4.3 Remittance ...... 58 4.4 Investment Trends and Drivers ...... 61 4.4.1 Increasing number of NRPs worldwide ...... 61

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 6

TABLE OF CONTENTS

4.4.2 Persian Gulf-based NRPs remain the key market for wealth management providers ...... 61 4.4.3 Favorable investment policies and well-regulated financial markets ...... 62 4.4.4 Positive economic outlook ...... 62 4.4.5 Increasing competition among domestic and international wealth management providers ...... 62 4.4.6 Favorable exchange rate encouraging NRP investment in Pakistan ...... 63 4.5 Competitive Landscape ...... 64 4.5.1 Overview of leading companies ...... 64 4.5.2 Marketing and expansion strategies ...... 66 4.6 Challenges...... 67 5 Bangladesh ...... 69 5.1 Market Environment ...... 69 5.1.1 GDP at constant prices ...... 69 5.1.2 Market capitalization ...... 70 5.1.3 Inflation rate ...... 71 5.2 NRB Population ...... 72 5.2.1 Number of non-resident Bangladeshis ...... 72 5.2.2 Number of non-resident Bangladeshi millionaires ...... 74 5.2.3 Wealth of non-resident Bangladeshi millionaires...... 75 5.3 Remittance ...... 78 5.4 Investment Trends and Drivers ...... 80 5.4.1 NRB investment options ...... 80 5.4.2 Investment products targeting NRB customers are being introduced by the country‘s leading banks ... 80 5.4.3 Incentives to attract NRB investment ...... 80 5.4.4 Trade fairs are being organized to in order to attract investment in Bangladesh stock market ...... 80 5.4.5 Bangladesh‘s strong economic performance is driving growth in NRB investment ...... 81 5.4.6 Banks working with money transfer companies to improve remittance process ...... 81 5.4.7 Increasing overseas employment is driving growth in inward remittances ...... 81 5.5 Competitive Landscape ...... 82 5.5.1 Overview of leading companies ...... 83 5.5.2 Marketing and expansion strategies ...... 85 5.6 Challenges...... 86 6 Sri Lanka ...... 87 6.1 Market Environment ...... 87 6.1.1 GDP at constant prices ...... 87 6.1.2 Market capitalization trend – Colombo Stock Exchange, Sri Lanka ...... 88 6.1.3 Inflation rate ...... 88 6.2 NRSL Population ...... 89 6.2.1 Number of non-resident Sri Lankans ...... 89 6.2.2 Number of non-resident Sri Lankan millionaires...... 91 6.2.3 Wealth of non-resident Sri Lankan millionaires ...... 92 6.3 Remittance ...... 95 6.3.1 Remittance by region ...... 96 6.4 Investment Trends and Drivers ...... 97

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 7

TABLE OF CONTENTS

6.4.1 Sri Lanka's strong, resilient economy has helped to increase business confidence in the country ...... 97 6.4.2 Sri Lankan government seeking to promote NRSL investment in the country ...... 97 6.4.3 Depreciation of Sri Lankan rupee expected to increase capital investment in the country...... 98 6.4.4 Further non-resident investment anticipated over the forecast period ...... 98 6.4.5 Availability of Sri Lankan banks in foreign countries...... 98 6.4.6 Government initiatives designed to attract NRSL investment ...... 98 6.5 Competitive Landscape ...... 99 6.5.1 Overview of leading companies ...... 99 6.5.2 Marketing and expansion strategies ...... 101 6.6 Challenges...... 102 7 Appendix ...... 103 7.1 About BRICdata ...... 103 7.1.1 Areas of expertise ...... 103 7.2 Methodology ...... 104 7.3 Definitions ...... 105 7.4 Disclaimer ...... 105

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 8

TABLE OF CONTENTS

LIST OF FIGURES

Figure 1: Non-Resident Population of South Asian Countries – 2011 ...... 11 Figure 2: Non-Resident Millionaires Wealth Comparison (US$ Billion), 2007–2016 ...... 12 Figure 3: South Asia Comparison of Remittances (US$ Billion) – 2011 ...... 13 Figure 4: India – GDP at Constant Prices (US$ Billion), 2007–2016 ...... 14 Figure 5: India – Inflation Rate (%), 2007–2016...... 15 Figure 6: India – Market Capitalization (US$ Billion), 2007–2011 ...... 16 Figure 7: Overseas Indian Population by Country (%), 2011 ...... 18 Figure 8: NRI Millionaire Population by Country (%), 2011 ...... 19 Figure 9: NRI Millionaires Total Wealth (US$ Billion), 2007–2011 ...... 20 Figure 10: NRI Millionaires Total Wealth (US$ Billion), 2012–2016 ...... 21 Figure 11: NRI Millionaires Wealth by Country (%), 2011 ...... 22 Figure 12: NRI Wealth Portfolio (US$ Billion), 2011 ...... 23 Figure 13: Segmentation of Indian Billionaires By Net Worth (US$ Billion), 2012 ...... 26 Figure 14: Indian Billionaires‘ Sources of Wealth (%), 2012 ...... 26 Figure 15: Indian Remittances (US$ Billion), 2007–2011 ...... 27 Figure 16: Indian Remittances by Country of Origin (%), 2011 ...... 28 Figure 17: Utilization of NRI Remittance (%) ...... 28 Figure 18: Investment Trends and Drivers ...... 29 Figure 19: Deposits in Banks by NRIs (US$ Billion), 2007–2011 ...... 30 Figure 20: Exchange Rate (US$ to INR), January 2011–December 2011 ...... 33 Figure 21: Pakistan – GDP at Constant Prices (US$ Billion), 2007–2016 ...... 49 Figure 22: Pakistan – Inflation Rate (%), 2007–2016 ...... 50 Figure 23: Pakistan – Market Capitalization (US$ Billion), 2007–2011 ...... 51 Figure 24: Non-Resident Pakistani Population by Country (%), 2011...... 53 Figure 25: NRP Millionaire Population by Region (%), 2011 ...... 54 Figure 26: NRP Millionaires‘ Wealth (US$ Billion), 2007–2011 ...... 55 Figure 27: NRP Millionaires‘ Wealth (US$ Billion), 2012–2016 ...... 56 Figure 28: NRP Millionaires‘ Wealth by Region (US$ Billion), 2011...... 57 Figure 29: Pakistani Remittances (US$ Million), 2007–2011 ...... 58 Figure 30: Pakistani Remittances by Country of Origin (%), 2011 ...... 60 Figure 31: Investment Trends and Drivers ...... 61 Figure 32: Exchange Rate (US$ to PKR), 2007–2011 ...... 63 Figure 33: Net Inflow of Foreign Investment in Pakistan (US$ Million), 2007–2011...... 67 Figure 34: Pakistan – Market Capitalization (PKR Billion), 2007–2011 ...... 68 Figure 35: Bangladesh GDP at Constant Prices (US$ Billion), 2007–2016 ...... 69 Figure 36: Dhaka Stock Exchange Market Capitalization (US$ Billion), 2007–2011...... 70 Figure 37: Bangladesh – Inflation Rate (%), 2007–2016 ...... 71 Figure 38: Overseas Bangladeshi Population by Country, 2011 ...... 73 Figure 39: NRB Millionaires by Region, 2011 ...... 74 Figure 40: NRB Millionaires Wealth (US$ Billion), 2007–2011 ...... 75 Figure 41: NRB Millionaires Wealth (US$ Billion), 2012–2016 ...... 76 Figure 42: NRB Millionaires Wealth by Region (US$ Billion), 2011 ...... 77 Figure 43: Bangladesh Remittances (US$ Billion), 2007–2011 ...... 78 Figure 44: Bangladesh Remittances (US$ Billion), 2012–2016 ...... 78 Figure 45: Bangladeshi Remittances by Country of Origin (%), 2011 ...... 79 Figure 46: Bangladesh Remittances Market Share by Bank, March 2012 ...... 82 Figure 47: Sri Lanka GDP Value at Constant Prices (US$ Billion), 2007–2016 ...... 87 Figure 48: Sri Lanka – Colombo Stock Exchange Market Capitalization (US$ Billion), 2007–2011 ...... 88 Figure 49: Sri Lanka Inflation Rate (%), 2007–2016 ...... 88 Figure 50: NRSL Population by Country – 2011 ...... 90 Figure 51: NRSL Millionaires by Country, 2011 ...... 91 Figure 52: NRSL Millionaires Wealth (US$ Billion), 2007 – 2011 ...... 92 Figure 53: NRSL Millionaires Wealth (US$ Billion), 2012 – 2016 ...... 93 Figure 54: NRSL Millionaires Wealth by Country (US$ Billion), 2011 ...... 94 Figure 55: Remittances by Non-resident Sri Lankans (US$ Billion), 2007–2011 ...... 95 Figure 56: Sri Lanka Remittances by Region, 2011...... 96 Figure 57: Investment Trends and Drivers ...... 97 Figure 58: Exchange Rate (US$ to LKR), 2007–2011 ...... 98

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 9

TABLE OF CONTENTS

LIST OF TABLES

Table 1: Non-Resident Population of South Asian Countries – 2011 ...... 11 Table 2: Non-Resident Millionaires Wealth Comparison (US$ Billion), 2007–2016 ...... 12 Table 3: Average Wealth of Non-Resident Millionaires, 2011 ...... 12 Table 4: Overseas Indian Population by Country, 2011 ...... 17 Table 5: NRI Millionaire Population by Country, 2011 ...... 19 Table 6: NRI Millionaires Total Wealth (US$ Billion), 2007–2011 ...... 20 Table 7: NRI Millionaires Total Wealth (US$ Billion), 2012–2016 ...... 21 Table 8: NRI Millionaires Wealth by Country (US$ Billion), 2011 ...... 22 Table 9: List of Indian Billionaires Worldwide, 2012...... 24 Table 10: Indian Remittances by Country of Origin (US$ Billion), 2007–2011 ...... 27 Table 11: Deposits in Banks by NRIs (US$ Billion), 2007–2011 ...... 29 Table 12: FDI Inflows (US$ Billion), April 2000–June 2011 ...... 32 Table 13: Investment Cap for Persons Resident Outside India by Sector ...... 34 Table 14: Non-Resident Pakistani Population by Country (Million), 2011 ...... 52 Table 15: NRP Millionaire Population by Region, 2011 ...... 54 Table 16: NRP Millionaires‘ Wealth (US$ Billion), 2007–2011 ...... 55 Table 17: NRP Millionaires‘ Wealth (US$ Billion), 2012–2016 ...... 56 Table 18: NRP Millionaires‘ Wealth by Region (US$ Billion), 2011 ...... 57 Table 19: Pakistani Remittances (US$ Million), 2007–2011 ...... 58 Table 20: Pakistani Remittances by Country of Origin (US$ Million), 2007–2011 ...... 59 Table 21: Pakistan‘s Gross Domestic Product and Foreign Exchange Reserves (US$ Billion), 2007-2011 ...... 62 Table 22: Net Inflow of Foreign Investment in Pakistan (US$ Million), 2007–2011 ...... 67 Table 23: Pakistan – Market Capitalization (PKR Billion), 2007–2011...... 68 Table 24: Overseas Bangladeshi Population by Country, 2011 ...... 72 Table 25: NRB Millionaires by Region, 2011 ...... 74 Table 26: NRB Millionaires Wealth (US$ Billion), 2007–2011 ...... 75 Table 27: NRB Millionaires Wealth (US$ Billion), 2012–2016 ...... 76 Table 28: NRB Millionaires Wealth by Region (US$ Billion), 2011...... 77 Table 29: Bangladeshi Remittances by Country of Origin (US$ Million), 2007–2011 ...... 79 Table 30: Bangladesh – Foreign Exchange Reserves (US$ Billion), 2007-2011 ...... 81 Table 31: Bangladeshi Overseas Employment New Migrations, 2007–2011 ...... 81 Table 32: Bangladesh Remittances Market Share by Bank, March 2012 ...... 82 Table 33: BRAC Bank Money Transfer Partnerships by Country, 2010 ...... 83 Table 34: NRSL Population by Country – 2011 ...... 89 Table 35: NRSL Millionaires by Country, 2011 ...... 91 Table 36: NRSL Millionaires Wealth (US$ Billion), 2007–2011 ...... 92 Table 37: NRSL Millionaires Wealth (US$ Billion), 2007–2011 ...... 93 Table 38: NRSL Millionaires Wealth by Country (US$ Billion), 2011 ...... 94 Table 39: Remittances by Non-resident Sri Lankans (US$ Billion), 2007–2011...... 95 Table 40: Sri Lanka Remittances by Region (US$ Million), 2007–2011 ...... 96

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 10

SOUTH ASIA’S WEALTH DIASPORA – COUNTRY BENCHMARK COMPARISION

2 South Asia’s Wealth Diaspora – Country Benchmark Comparison

The countries covered by the term ―South Asia‖ include India, Pakistan, Bangladesh and Sri Lanka, and this report will focus on these four countries as they are among the largest in the region and have the highest overseas populations. South Asia has been a significant source of outward migration since the mid-1800s, as the region‘s population sought better opportunities throughout South East Asia and the Middle East. After partition, migrants from India, Pakistan and later Bangladesh ventured further afield to developed countries in search of better employment opportunities and a better standard of living. The Indian diaspora is the largest among non-resident South Asians (NRSAs), followed by Pakistanis and Bangladeshis. In 2011, HSBC Private Bank estimated the wealth of the NSRA population at over US$X.X trillion, of which US$XXX billion is estimated to be held onshore in India. Global banks such as HSBC Private Bank, Deutsche Bank, Barclays, UBS and RBS are highly active in the provision of wealth management services to the NRSA population. For example, from 2011 to 2013, Deutsche Bank‘s private banking arm plans to increase its number of private bankers targeting wealthy South Asian clients by XX% as part of its plan to increase its assets under management belonging to South Asians. 2.1 Market Environment Overall, NRIs account for the majority of the overseas South Asian population, with a XX% share and a total of XX.X million in 2011. They are followed by NRPs, with a population of eight million. After these two largest groups, NRBs account for XX% of the total non-resident South Asian population, and NRSLs account for a X% share. Furthermore, around XXX,XXX NRIs are millionaires, accounting for X.XX% of the total oversea Indian population. This is followed by NRP millionaires, with XX,XXX; NRB millionaires, with X,XXX; and NRSL millionaires, with X,XXX.

Table 1: Non-Resident Population of South Asian Countries – 2011

Total Non-resident population 2011 (Million) Number of Non-resident Millionaires 2011

India XX.X XXX,XXX

Pakistan X.X XX,XXX

Bangladesh X.X X,XXX

Sri Lanka X.X X,XXX Source: BRICdata analysis © BRICdata

Figure 1: Non-Resident Population of South Asian Countries – 2011

Source: BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 11

SOUTH ASIA’S WEALTH DIASPORA – COUNTRY BENCHMARK COMPARISION

2.2 Share of Wealth by Nationality NRI millionaires account for the largest share of total wealth of millionaires among South Asian countries, with an XX.X% share of the total wealth among this group. The total wealth of NRI millionaires valued approximately US$XXX billion in 2011. They are followed by NRP millionaires, with total wealth of US$XX.X billion; NRB millionaires, with total wealth of US$XX.X billion; and NRSL millionaires, with total wealth of US$XX.X billion. The wealth of NRSL millionaires recorded the strongest growth during the review period, with a CAGR of XX.XX%; while NRP millionaires are projected to record the strongest growth over the forecast period, with an expected CAGR of XX.XX%.

Table 2: Non-Resident Millionaires Wealth Comparison (US$ Billion), 2007–2016

Country Market Size (US$ Billion), 2011 Market Growth, CAGR 2007–2011 Market Growth, CAGR 2012–2016 India XXX.X X.XX% XX.XX% Pakistan XX.X XX.XX% XX.XX% Bangladesh XX.X X.XX% X.XX% Sri Lanka XX.X XX.XX% XX.XX% Source: BRICdata analysis © BRICdata

Figure 2: Non-Resident Millionaires Wealth Comparison (US$ Billion), 2007–2016

13%

12%

India

2016) - Pakistan 11% Sri Lanka

10%

Bangladesh

Forecast CAGR (2012 CAGR Forecast 9%

8% 8% 9% 10% 11% 12% 13% 14%

CAGR (2007-2011)

Source: Reserve Bank of India and BRICdata analysis © BRICdata

The average wealth of an NRB millionaire stood at US$X.X million in 2011. Among South Asian millionaires, NRB millionaires have the highest average wealth of US$X.X million; followed by NRI millionaires, with average wealth of US$X.X million; NRP millionaires, with average wealth of US$X.X million; and NRSL millionaires, with average wealth of US$X.X million.

Table 3: Average Wealth of Non-Resident Millionaires, 2011

Total Number of Millionaires Total Wealth (US$ Billion) Average Wealth (US$ Million)

India XXX,XXX XXX.X X.X Pakistan XX,XXX XX.X X.X Bangladesh X,XXX XX.X X.X Sri Lanka XXXX XX.X X.X Source: BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 12

SOUTH ASIA’S WEALTH DIASPORA – COUNTRY BENCHMARK COMPARISION

2.3 Comparison of Remittances across South Asia Overall, India is the largest market for inward remittances from non-resident populations, with the country‘s inward remittances totaling US$XX.X billion in 2011. It was followed by Bangladesh, with total remittances of US$XX.X billion; Pakistan, with total remittances of US$XX.X billion; and Sri Lanka, which had a total non-resident population of approximately X.X million and total inward remittances of US$X.X billion in 2011. During the review period, Pakistan recorded the strongest growth in inward remittances, with a CAGR of XX.XX%. It was followed by Bangladesh, with a remittances CAGR of XX.XX%; Sri Lanka, with a remittances CAGR of XX.XX%; and India, with a remittances CAGR of XX.XX%. The primary factors responsible for the large market size of India‘s remittances include the country‘s large non-resident population, favorable government policies, the increasing income levels of NRIs, better investment instruments and positive macroeconomic fundamentals. In other countries such as Pakistan, Bangladesh and Sri Lanka, the growth in inward remittances has been driven by government initiatives designed to increase foreign investment in the country.

Figure 3: South Asia Comparison of Remittances (US$ Billion) – 2011

Source: BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 13

INDIA

3 India 3.1 Market Environment 3.1.1 GDP at constant prices India‘s gross domestic product (GDP) at constant prices stood at US$XXX.X billion in 2011, after recording a CAGR of X.XX% during the review period. Over the forecast period, this growth is expected to accelerate to a CAGR of X.XX%, to reach a projected value of US$X.XX billion in 2016. With the growth of the Indian economy expected to accelerate over the forecast period, NRI investment in the country is also expected to increase.

Figure 4: India – GDP at Constant Prices (US$ Billion), 2007–2016

Source: Reserve Bank of India and BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 14

INDIA

3.2 NRI Population The term ‗Indian diaspora‘ is a generic term used to classify people who have emigrated from India, including both NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin). According to 2011 estimates from the Indian government, the Indian diaspora totals over XX million people. For tax and official purposes, the Indian government considers any Indian national that is away from India for more than 180 days a year as an NRI. In common usage, this often includes Indian-born individuals who have taken up citizenship of other countries, as India does not recognize dual citizenship. A PIO is a person of Indian origin who is not a citizen of India. For the purposes of issuing a PIO Card, the Indian government considers anyone of Indian origin to be a PIO, up to four generations removed. After India achieved independence in 1947, there was a distinct pattern of emigration observed during the subsequent decades. Initially, Indians left for the UK and, together with the US, this was the country‘s emigrant population‘s favored destination. At the same time, smaller numbers of Indians also migrated to other English-speaking countries such as Australia and New Zealand. However, the rapid growth of the Middle Eastern oil industry in the 1970s then attracted significant numbers of Indians to the Gulf countries, although this was generally on a contractual basis rather than the permanent migration observed to other countries. 3.2.1 Number of non-resident Indians Today, the Indian diaspora is spread across the globe, with NRIs and PIOs living in XXX countries worldwide. Approximately XX% of the total diaspora is located in Asian and African countries, with the majority of this population living in the Persian Gulf and Southeast Asia. Every year, over XXX,XXX Indians migrate overseas, increasing the Indian diaspora by at least X% annually. Overall, the US is home to the highest number of NRIs and PIOs, followed by Malaysia and the UAE. The UK is also home to a significant number of NRIs and PIOs, with an overseas Indian population of X.X million. Moreover, other countries with overseas Indian populations of over X million include South Africa and Canada. In addition to the listed countries, there is a significant number of NRIs in neighboring countries, such as Sri Lanka, Myanmar and Nepal. However, as these countries are among the poorest in the world, NRIs in these countries do not have a significant effect on the worldwide NRI wealth management market.

Table 4: Overseas Indian Population by Country, 2011

Country Overseas Indians living abroad (Including NRIs and PIOs)

US X,XXX,XXX Malaysia X,XXX,XXX

Saudi Arabia X,XXX,XXX UAE X,XXX,XXX Sri Lanka X,XXX,XXX UK X,XXX,XXX South Africa X,XXX,XXX

Canada X,XXX,XXX Mauritius XXX,XXX Other countries X,XXX,XXX Total worldwide XX,XXX,XXX Source: The Ministry of Overseas Indian Affairs and BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 15

PAKISTAN

4 Pakistan 4.1 Market Environment 4.1.1 GDP at constant prices Pakistan‘s GDP at constant prices increased from US$XXX.X billion in 2007 to US$XXX.X billion in 2011, recording a CAGR of X.XX% during the review period. Over the forecast period, this growth is expected to accelerate to a CAGR of X.XX% to reach a projected value of US$XXX.X billion in 2016. This strong economic growth is expected to benefit the country‘s investment environment.

Figure 5: Pakistan – GDP at Constant Prices (US$ Billion), 2007–2016

Source: BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 16

PAKISTAN

4.2 NRP Population The Pakistani diaspora includes non-resident Pakistanis (NRPs) and persons of Pakistani origin (PPOs). An NRP is a Pakistani who has migrated to another country and is claiming residence in that country, while a PPO is a person of Pakistani origin who was born outside Pakistan. The total NRP population worldwide is estimated at eight million and, in 2011, Pakistanis living abroad remitted more than US$XX.X billion to Pakistan. Overall, inbound remittances are the second-largest source of foreign exchange in the country, after exports. Many Pakistanis have sought work in the Middle East, with Saudi Arabia home to the world‘s largest NRP population and the Persian Gulf countries accounting for XX% of the total non-resident Pakistani population. They are followed by the UK and the US. 4.2.1 Number of non-resident Pakistanis Just over XX% of the NRP population, or X.X million, are present in European countries, with the majority of this group living in the UK. The US also caters to a large number of NRPs, with an NRP population of approximately XXX,XXX. Overall, Saudi Arabia is home to the highest number of NRPs, with X.XX million; followed by the UK, with X.XX million; the UAE, with X.XX million; the US, with X.XX million; and Canada, with a population of X.XX million. In addition to the countries listed above there are significant NRP populations in countries such as Oman, Kuwait, Italy, Qatar, Greece, France, Spain, Bahrain, Netherlands, Denmark and Norway.

Table 5: Non-Resident Pakistani Population by Country (Million), 2011

Country Non-resident Pakistani population (Million)

Saudi Arabia X.XX UK X.XX UAE X.XX US X.XX Canada X.XX

Oman X.XX Kuwait X.XX Italy X.XX Qatar X.XX Greece X.XX

France X.XX Spain X.XX Bahrain X.XX Netherlands X.XX Denmark X.XX

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 17

SRI LANKA

5 Bangladesh 5.1 Market Environment 5.1.1 GDP at constant prices During the review period, Bangladesh‘s GDP at constant prices recorded a CAGR of X.XX% to reach a value of US$XX.X billion in 2011. This growth is expected to accelerate to a CAGR of X.XX% over the forecast period, to reach a projected value of US$XXX.XX billion in 2016. This strong economic growth is expected to attract increased investment from NRBs.

Figure 6: Bangladesh GDP at Constant Prices (US$ Billion), 2007–2016

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 18

SRI LANKA

5.2 NRB Population The term non-resident Bangladeshis (NRBs) encompasses two main groups. The first is expatriate Bangladeshis permanently living as immigrant communities, and is commonly referred to as the Bangladeshi diaspora; while the second denotes migrant workers working on temporary overseas employment contracts, which are referred to as expatriate workers. As is the case with many Asian countries, international migration from Bangladesh changed substantially during the last five decades. Notably, until the middle of the 1970s, migration was driven primarily by the sponsored migration of families to the UK, as well as by a far smaller number of professionals and skilled workers migrating to the US. However, from the mid-1970s, temporary labor migration for economic reasons accelerated, with this phenomenon becoming especially prevalent from the 1990s onwards. The key reason for this increase was the need for cheap, unskilled labor in oil-producing countries throughout the Middle East. More recently, migration in a variety of forms — by students and tourists, through family sponsorship, by the skilled and irregular workforce, and through various visa schemes and the regularization of illegal residents — has led to sizeable Bangladeshi populations in North America and across Europe. The motivations for this migration differ, depending on the destination and timeframe. Generally, migrants travelling to Europe and North America are attracted by opportunities for further education, employment opportunities, and/or hopes of establishing businesses. Additionally, a large number of people have also moved to these regions in the hope of securing a better future for their children. Temporary migrants to the Middle East and to South East Asia, however, primarily move to earn a living and to improve their economic status. The largest and most common form of international population movement from Bangladesh is migrants travelling on temporary contracts to the Middle East and parts of South East Asia, with Saudi Arabia, the UAE, Kuwait, Qatar, Oman, Bahrain, Malaysia, and Singapore among the preferred destinations. This migration is, however, fundamentally different from migration to the West, as these migrants generally return once their contract period is completed. 5.2.1 Number of non-resident Bangladeshis Since 1976, Saudi Arabia has been the largest net employer of overseas Bangladeshis and currently accounts for the largest proportion of total documented Bangladeshi workers who have moved abroad. In this regard, it is followed by the UAE and Malaysia. However, while Saudi Arabia hosts the largest number of Bangladeshi workers by a significant margin, it was eclipsed in 2006 by the UAE and in 2007 by both Malaysia and the UAE in terms of new worker migration. Overall, the migration new of workers to Saudi Arabia declined significantly during the review period, falling from XXX,XXX in 2007 to XX,XXX in 2011. In 2011, the UAE accounted for the largest share of new migrant Bangladeshi migration, followed by Oman and Singapore. Interestingly, a steady increase in the flow of temporary migrants to neighboring countries has been accompanied by a steady decrease in the proportion of professional and skilled migrants. Bangladesh‘s migrant population is located worldwide, with BRICdata estimating the country‘s total overseas population at approximately X.X million. Of this total, BRICdata estimates that X.X million are living in Saudi Arabia, X.X million are living in the UAE, and X.X million living in the UK.

Table 6: Overseas Bangladeshi Population by Country, 2011

Country Overseas Bangladeshi population (Million)

Saudi Arabia X.X

UAE X.X UK X.X

Malaysia X.X Oman X.X Kuwait X.X USA X.X Qatar X.X

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 19

SRI LANKA

6 Sri Lanka 6.1 Market Environment 6.1.1 GDP at constant prices In 2011, Sri Lanka‘s GDP at constant prices valued US$XX.X billion, after recording a CAGR of X.XX% during the review period. Over the forecast period, this growth is expected to accelerate to a CAGR of X.XX%, to reach a projected value of US$XX.X billion in 2016. This positive GDP forecast is expected to increase the confidence of NRSLs in their home country and may also help to attract increased levels of NRSL investment.

Figure 7: Sri Lanka GDP Value at Constant Prices (US$ Billion), 2007–2016

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 20

SRI LANKA

6.2 NRSL Population While the Sri Lankan diaspora is small compared to other Asian countries‘ migration patterns, it does account for a significant percentage of the country‘s population. Overall, Sri Lanka‘s population stood at XX.X million in 2011, of which approximately X.X million, or over XX%, are living outside the country. Geographically, members of the Sri Lankan diaspora are dispersed as widely as the overseas populations of the other countries discussed in this report. With non- resident Sri Lankans (NRSLs) accounting for a significant share of the Sri Lankan population, remittances from these migrant workers, which were estimated at US$X.X billion in 2011, are also an important source of foreign exchange for the country. Sri Lanka also recorded significant remittances growth during the review period, with the country‘s remittances recording a CAGR of XX.XX% to reach a value of US$X.X billion in 2011. Further growth is projected over the forecast period, with the total value of remittances to the country expected to reach US$X billion in 2016. Moreover, since the introduction of outward-oriented liberalized trade policies in 1977, Sri Lanka has continuously recorded a greater value of worker remittances than foreign direct investment. Also, on a per capita basis, worker remittances to Sri Lanka are the highest in South Asia. Recent studies on the Sri Lankan diaspora have focused primarily on the migration caused by the 30-year conflict between the Liberation Tigers of Tamil Eelam (LTTE) separatist group and the Sri Lankan military, which resulted in an exodus of refugees worldwide. Furthermore, due to this conflict, some Sri Lankan families continue to be divided and live across multiple continents. Prior to this conflict-induced displacement and migration from refugees and those who feared for their safety, there were significant levels of migration from Sri Lanka during the colonial and early post-colonial period. Additionally, considerable numbers of Sri Lankans worked in British colonies in Africa and East Asia, with many also going on to marry and settle in these locations and resulting in significant Sri Lankan-descended populations in these regions. 6.2.1 NRSL population The Sri Lankan Diaspora consists of two ethnic groups, the Singhalese and the Tamils. Overall, the Singhalese are the majority ethnic group in Sri Lanka, constituting XX.X% of the population. The Tamils are Sri Lanka‘s second-largest ethnic group, comprising X.X% of the country‘s population. When Sri Lanka‘s non-resident population is analyzed by country of residence, Saudi Arabia accounts for highest share, with an NRSL population of XXX,XXX in 2011. It is followed by Canada, with XXX,XXX; and the UK, with XXX,XXX. The Persian Gulf countries account for approximately XX% of the total NRSL population.

Table 7: NRSL Population by Country – 2011

Countries Total NRSL population Saudi Arabia XXX,XXX Canada XXX,XXX United Kingdom XXX,XXX UAE XXX,XXX Kuwait XX,XXX India XXX,XXX France XXX,XXX Germany XX,XXX Switzerland XX,XXX Australia XXX,XXX Italy XX,XXX USA XX,XXX Other Europe XX,XXX Malaysia XX,XXX Rest of the world XXX,XXX Total X,XXX,XXX Source: VRL and BRICdata analysis © BRICdata

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 21

SRI LANKA

7 Appendix 7.1 About BRICdata BRICdata publishes in-depth strategic intelligence reports that help its customers better understand opportunities in emerging markets and industry sectors. Its reports provide an independent, expert view supported by primary research and access to leading data and intelligence sources.

BRICdata is a comprehensive source of insights and analysis, and publishes a broad range of reports across a number of different industry sectors, including consumer, retail, financial services, technology, telecoms and construction.

BRICdata is headquartered in London with research, analysis and account management teams based across Europe, the US and Asia-Pacific. Its global research footprint is supported by a network of external associates, data partners and industry experts to give the clearest possible perspective on emerging markets.

7.1.1 Areas of expertise

BRICdata operates a dedicated, multilingual team of in-house industry analysts with significant experience of global and country-level research. BRICdata also maintains data and research partnerships with other research companies, industry experts and trade associations, along with a network of independent industry consultants and former industry participants contributing research and reports to bring additional insight and expertise in more specialist areas.

BRICdata‘s research offering spans the following industry areas:

Construction BRICdata publishes reports covering the entire construction value chain: construction materials, equipment, construction services, architectural services and interior design. It also covers the main value sectors of construction activity: commercial, infrastructure, industrial, institutional and residential.

This comprehensive view of the market enables BRICdata to detail key growth sectors and countries and identify the most attractive industry opportunities.

Consumer goods Covering a broad range of areas across the consumer goods market, from interior products to fast-moving consumer goods (FMCG), ingredients, and packaging, BRICdata offers a comprehensive insight into key consumer sectors across fast-growing markets, identifying key trends, future innovations and growth opportunities.

Comprehensive data sets including unique primary survey-driven research creates accurate market forecasts and understanding of the factors driving consumption behavior.

Financial services Providing detailed insights into insurance and banking markets, BRICdata‘s financial services reports identify key market opportunities, emerging technologies and channel strategies. The reports provide unique data combined with local examples of best practice and expert insights into the market.

Retail BRICdata maintains a comprehensive database of forecasts of retail spending, along with a series of unique indicators enabling a forward view of retailers‘ prospects in emerging markets. The reports identify emerging concepts in retail, including the nascent online and mobile retail sectors in the BRIC countries and other emerging markets.

Technology BRICdata tracks key trends and innovations, emerging technologies and markets, and the key operators in both emerging markets and technologies. Covering a range of emerging and disruptive technologies including telecoms, social media, online and mobile retailing, and telemedicine, BRICdata examines strategies for success, the state of the competitive landscape and the inherent threats and opportunities in the emerging technological economy.

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 22

SRI LANKA

7.2 Methodology All BRICdata reports are rigorously sourced and created according to a comprehensive, two-stage methodology. This includes internal audit and primary research. A) Internal audit  Review of in-house databases to gather existing data: o Historic market databases and reports o Company database o projects database B) Primary research  Review of the latest company strategy and asset management trends

1) Research A. Sources  Collection of the latest market-specific data from a wide variety of industry sources: o Government statistics o Industry associations o Company filings o Broker reports o International organizations B. Expert opinion  Collation of opinion taken from leading industry experts  Analysis of third-party opinion and forecasts: o Broker reports o Industry associations o Official government sources C. Data consolidation and verification  Consolidation of data and opinion to create historical datasets  Creation of models to benchmark data across sectors and geographies

2) Research Analysis Market forecasts  Feed of forecast data into market models: o Macroeconomic indicators o Industry-specific drivers  Analysis of Market Databases to identify trends by sector: o Latest trends o Key drivers of the market

3) Report Writing  Analysis of market data  Discussion of company and industry trends and issues  Integration of survey results  Annual review of trends  Standardization of market definitions using recognized industry classifications

4) Quality Control A. Templates  Detailed process manuals  Standardized report templates and accompanying style guides  Complex forecasting tool used to ensure forecast methodologies are consistently applied  QC checklists B. QC process  Peer review  Senior-level QC  Random spot checks on data integrity

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 23

SRI LANKA

 Benchmark checks across databases  Market data cross-checked for consistency with accumulated data from company filings

7.3 Definitions For the purposes of this report, the following timeframes apply:

 Review period: 2007–2011  Forecast period: 2012–2016

All data is collected in local currency. To avoid distortions due to currency fluctuations, all conversions into US dollars of current, historical and forecast data are made with a yearly average exchange rate. All values in tables, with the exception of compound annual growth rates (CAGR) are displayed to one decimal place. Growth rates may, therefore, appear inconsistent with absolute values due to this rounding method.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, BRICdata.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that BRICdata delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BRICdata can, therefore, accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

South Asia‘s Wealth Diaspora – Looking Beyond Non-Resident Indians Page 24