Oil price drop dents wealth of ultra rich
$30t is the current combined wealth of ultra high net worth individuals
dubai — The world’s ultra wealthy population — who on average are likely to be male, married and in their late 50s with $30 million or more in net assets — experienced almost flat growth as the plunge in energy and commodity prices from mid-2015 onward proved punishing for the ultra wealthy in certain countries, according to a new report from Wealth-X.
However, the total ultra high net worth (UHNW) wealth across the world increased by 0.8 per cent to $30 trillion — a record high, and by 2020, the wealth of these ultra rich is expected to grow to $46.2 trillion at a compound annual growth rate of nine per cent, with the ultra rich population expected to exceed 318,000, Wealth-X said in its latest report on the world’s super rich.
Currently, there are 212,615 individuals in the world who qualify as ultra high net worth, accounting for just 0.004 per cent of the world’s adult population but controlling 12 per cent of its wealth. In two out of three cases, their wealth is purely self-made rather than inherited. The average net worth of the ultra wealthy individual was $141 million in 2015, experiencing an average increase of $290,000 year on year, Wealth-X said.
Finance, banking and investment remains the most significant industry in which to find the ultra wealthy, but its lead has shrunk while the percentage of UHNW individuals involved in manufacturing has grown to eight per cent since Wealth-X 2014 report — a three per cent increase.
In Europe, the Middle East and Africa, UHNW wealth fell 2.4 per cent as equity markets, local currencies and gross domestic product collectively experienced negative net returns. By contrast, Asia-Pacific experienced a 3.9 per cent rise as the ultra wealthy in certain markets continued to benefit from dynamic business expansion and economic growth. In the Americas, it was Latin America, rather than North America, that helped the region achieve a modest 1.5 per cent growth in ultra wealth value.
The report noted that across all geographic regions, it is the highest ranks of the UHNW population who are experiencing the most success. In 2015, billionaires saw their wealth grow 5.4 per cent, more than double the rate of global economic growth, while collectively other tiers saw their wealth shrink by 0.6 per cent.
While the female UHNW population remained steady at 13 per cent, their share of total UHNW wealth fell from 14 per cent to 11 per cent this year. Average female high net worth wealth dropped from $147 million to $126.3 million.
On the other hand, male wealth increased 2.4 per cent from $139.8 million to $143.1 million.
— issacjohn@khaleejtimes.com