Middle East: Wealth Growing Fastest in the World

The Middle Eastern region is considered as the mecca of the global oil industry and is home to some of the richest countries in the world. The global oil hub is expected to become even more prosperous in the future.

According to a recent global ultra wealth report, over the coming years this part of the globe will provide lots of opportunities to private bankers to help boost their businesses. At the same time the region’s businesses are slated to become more competitive.
The wealth of the Middle East based “Ultra High Net Worth Individuals” (UHNW) has grown rapidly by over 15 percentage points since the past one year.  Simultaneously the collective wealth of these individuals has grown by over 24%. Reports confirm that currently there are more than 5,000 ultra-rich people residing in the region. The combined net worth of these wealthy individuals currently stands at a staggering $880 billion. It has been estimated that during the last twelve months the worldwide UHNW population has increased by 6.3%, whereas their enormous wealth rose by 7.7%.

Media reports claim that the Middle East presently accounts for 2.6% of the world’s wealthy billionaires. However one startling fact confirms that despite being the fastest growing wealthy region in the world, its wealth still lags behind the rest of the world. It seems that Saudi Arabia has the highest proportion of multimillionaires residing in the Gulf region. The combined worth of the wealthy Saudi elite has been put at $285 billion. The bank balance of the Saudis has grown at the fastest pace in the Middle Eastern region during the past year. More than 60 Saudi billionaires corner a lion’s share of the pie with a combined net worth of $204bn. However one thing lacking in Saudi Arabia is the fact that that it has one of the lowest levels of self-made UHNW individuals since most it is inherited. Another concern is that the country has one of the lowest representation levels of super-rich females.

The UAE is ranked in the second spot whereas Kuwait holds the third position. Reportedly more than 50% of the UAE’s ultra-rich people are self-made.  The combined wealth of its 37 billionaires has been valued at $45 billion.
Reports in the media speculate that the growth in wealth at such an astonishing speed in the Middle East is partly related due to the Arab Spring. The Middle Eastern national governments invested a large amount in several infrastructural projects, which combined with rising oil prices helped to bring about an economic renewal. Countries such as United Arab Emirates and Saudi Arabia have reportedly benefited to a large extent from the export led growth.