ID :
18348
Sun, 09/07/2008 - 17:24
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https://oananews.org//node/18348
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UAE in top five on millionaires' list
The UAE, Qatar and Kuwait are among the world's top five countries, which enjoy the densest concentration of millionaire population in the world, a new study has revealed.
"A Wealth of Opportunities in Turbulent Times report" – released by The Boston Consulting Group – said the wealth management opportunity in the Middle East is mainly concentrated in Gulf Co-operation Council (GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
The report said Dubai and Singapore are becoming regional private banking centres offering greater competition to traditional havens such as Switzerland; offering little choice to banks, brokerages and money managers, but to expand their presence in these fast growing centres.
Switzerland had the highest concentration of millionaire households in Europe, it said.
The report said wealth managers interested in establishing a presence in the GCC market will have to pay attention to several challenges, including the need to provide customised offerings and increasingly competitive environment.
It said the total GCC market had an estimated US$1.5 trillion (Dh5.5trn) in assets under management (AuM); and the average AuM of a wealthy household was an estimated US$1 million in the region – well above the global average of about US$400,000 for wealthy households.
The region shows signs of continued economic growth and diversification and GCC Government have upheld their efforts to expand economies beyond oil.
The Boston Consulting Group report said Middle East and Africa (MEA) and Latin America were the smallest wealth markets with AuM of US$3.4trn and US$3.1trn respectively.
In the Middle East and Africa, nearly 28 per cent of wealth was held offshore.
The report found that personal wealth around the world grew five per cent to US$109.5trn. It was the sixth consecutive year of expanding wealth. Personal wealth is also increasingly concentrated among the richest, the report found. The top one per cent of all households owned 35 per cent of the world's wealth last year, it added. Meanwhile, the top 0.001 per cent, ultra-rich households holding at least US$5m in assets, commanded US$21trn – a fifth of the world's wealth.
The report said the biggest jumps in 2007 came from emerging countries in Asia and Latin America. Overall, the number of millionaire households grew 11 per cent to 10.7 million last year. BCG noted that, while the rich are still rich, they have been making some adjustments as a result of the financial crisis.
The report found that assets are being shifted to more conservative investments, more money is being kept onshore in home markets and some individuals have curtailed new investment. BCG warned that the outlook for wealth markets and the banks who serve them, is dimmed by the current financial crisis.
North American personal wealth growth slowed to 3.8 per cent last year, compared with nine per cent in 2006, hit by the mortgage crisis and the credit crunch.
The report forecast that things would improve over the next five years with personal wealth growing more than three per cent annually – well off the 8.5 per cent set between 2002 and 2007.
Wealth is growing at much faster rates among the rest of the world. Households in Asia, the Pacific Rim excluding Japan and Latin America saw the greatest growth, with wealth rising 14 per cent.
"A Wealth of Opportunities in Turbulent Times report" – released by The Boston Consulting Group – said the wealth management opportunity in the Middle East is mainly concentrated in Gulf Co-operation Council (GCC) countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
The report said Dubai and Singapore are becoming regional private banking centres offering greater competition to traditional havens such as Switzerland; offering little choice to banks, brokerages and money managers, but to expand their presence in these fast growing centres.
Switzerland had the highest concentration of millionaire households in Europe, it said.
The report said wealth managers interested in establishing a presence in the GCC market will have to pay attention to several challenges, including the need to provide customised offerings and increasingly competitive environment.
It said the total GCC market had an estimated US$1.5 trillion (Dh5.5trn) in assets under management (AuM); and the average AuM of a wealthy household was an estimated US$1 million in the region – well above the global average of about US$400,000 for wealthy households.
The region shows signs of continued economic growth and diversification and GCC Government have upheld their efforts to expand economies beyond oil.
The Boston Consulting Group report said Middle East and Africa (MEA) and Latin America were the smallest wealth markets with AuM of US$3.4trn and US$3.1trn respectively.
In the Middle East and Africa, nearly 28 per cent of wealth was held offshore.
The report found that personal wealth around the world grew five per cent to US$109.5trn. It was the sixth consecutive year of expanding wealth. Personal wealth is also increasingly concentrated among the richest, the report found. The top one per cent of all households owned 35 per cent of the world's wealth last year, it added. Meanwhile, the top 0.001 per cent, ultra-rich households holding at least US$5m in assets, commanded US$21trn – a fifth of the world's wealth.
The report said the biggest jumps in 2007 came from emerging countries in Asia and Latin America. Overall, the number of millionaire households grew 11 per cent to 10.7 million last year. BCG noted that, while the rich are still rich, they have been making some adjustments as a result of the financial crisis.
The report found that assets are being shifted to more conservative investments, more money is being kept onshore in home markets and some individuals have curtailed new investment. BCG warned that the outlook for wealth markets and the banks who serve them, is dimmed by the current financial crisis.
North American personal wealth growth slowed to 3.8 per cent last year, compared with nine per cent in 2006, hit by the mortgage crisis and the credit crunch.
The report forecast that things would improve over the next five years with personal wealth growing more than three per cent annually – well off the 8.5 per cent set between 2002 and 2007.
Wealth is growing at much faster rates among the rest of the world. Households in Asia, the Pacific Rim excluding Japan and Latin America saw the greatest growth, with wealth rising 14 per cent.
