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UAE sets record for world’s fastest growth rate of ultra-wealthy population

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The UAE has the fastest growing population of the ultra-wealthy in the world, growing at an annual rate of 18.1% through 2022, led by an impressive 16.9% population growth in the Middle East, while globally their category is shrinking.

The number of Ultra High Net Worth Individuals (UHNWI) has surged last year, taking the UHNWI population to 1,116, supported by a series of groundbreaking reforms and innovations introduced in the UAE. According to Knight Frank’s latest Wealth Report, Saudi Arabia followed with an annual growth rate of 10.4%.

An ultra-high-net-worth individual is someone with a net worth of more than US$30 million, while a high-net-worth individual (HNWI) is someone with assets of US$1 million or more.

In 2022, the global population of ultra-high-net-worth individuals will decline by 3.8% after climbing a record 9.3% in 2021. , Ultra High Net Worth Individuals and High Net Worth Individuals. , the report said.

Three of the 10 fastest-growing ultra-high-net-worth markets are in Asia, with Malaysia, Indonesia and Singapore seeing wealth population growth of 7% to 9%.

The report predicts that the global ultra-high-net-worth population will grow 28.5% from 579,625 in 2022 to nearly 750,000 over the next five years.

Liam Bailey, global head of research at Knight Frank, said: “Last year’s decline in the global UHNWI population was largely due to underperformance in equity and bond markets. However, on the other hand, average price growth across the world’s 100 prime residential markets A 5.2 percent increase in luxury investment assets helped stabilize the decline, with a 16 percent rise in luxury investment assets.

“In the longer term, the global ultra-high-net-worth population has grown by 44% in the five years to 2022, and while we forecast growth to slow to 28.5% over the next five years, the recent decline will Proving to be short-lived into a new economic environment,” Bailey said.

Africa also showed resilience, with UHNWIs growing by 6.3%, while Oceania and the Americas remained largely unchanged, growing by 0.7% and 0.2% respectively.

The top 10 regions for forecast growth are mainly European and Asian economies. Hungary is expected to top the list with a 75% HNWI growth rate, followed by Turkey (70%) and Poland (67%). However, the U.S. will maintain its dominance among global HNWIs and is expected to grow by 24.6%.

In the latest update of its Wealth Report, Knight Frank identifies the level of personal net wealth required to meet the 1% threshold globally. This varies by country, but those who earn the “1.0%” fall well short of Knight Frank’s definition of an ultra-high-net-worth individual — someone with a net worth of more than $30 million.

In Monaco, which has the world’s densest population of ultra-wealthy, the entry point for the principality’s 1.0% was $12.4 million. That level is still almost double that of second-place Switzerland ($6.6 million). The UAE has the highest threshold in the Middle East with a required threshold of $1.6 million, while Brazil tops the Latin American market with a threshold of $430,000.

Copyright © 2022 Khaleej Times. all rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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