UAE’s wealthy population hits 55,700 in 2016

Number of high-networth individuals rebounds after slump

The UAE is slowly adding more multimillionaires back to its wealthy population, with the number of high-net-worth individuals (HNWIs) reaching 55,700 in 2016 after plunging from a recent peak.

The 2017 World Wealth Report released on Thursday by business consultancy Capgemini, showed that about 400 people joined the ranks of the UAE’s wealthy between 2015 and 2016.

The HNWI bracket covers individuals with $1 million (Dh3.67 million) in investable assets, as well as cash deposits, equities, bonds and funds owned, excluding their residence.

The UAE’s rich population, which collectively holds $195.3 billion in private wealth as of the latest analysis, had earlier slumped to 55,300 in 2015 from a high of 65,500 in 2014. During the same period, private fortunes nosedived to $193.2 billion from $227.9 billion.

The earlier decline was attributed to “unprecedented market conditions”.

Continued expansion

Across the Middle East region, the size of the wealthy population continues to expand, registering a 4.8 per cent increase in 2016 to 0.6 million, as wealth grew by 5 per cent to $2.41 trillion.

The population of millionaires in the region, as well as their fortunes, has been consistently growing since 2008.

Other studies, however, indicated that the UAE has consistently been attracting wealthy individuals. A report by New World Wealth, which tracks the migration of millionaires around the world, showed that 5,000 people with net assets of $1 million moved to the UAE in 2016, up from the 3,000 increase recorded in 2015.

Andrew Amoils, New World Wealth analyst, said the taxation regime in the UAE remains an attractive proposition for migrating millionaires.