UAE mints 15,000 millionaires in 2019

dubai — The number of millionaires in the UAE grew by almost 15,000 last year and another 41,300 high net worth individuals will make the Emirates their home over the next four years, according to a new study.

According to Knight Frank’s wealth report, the number of people with a wealth of $1 million grew from 182,768 in 2018 to 197,565 in 2019, an increase of 8 per cent or 14,994 new millionaires. The numbers are expected to grow by 21 per cent over the next four years to 238,834.

Meanwhile, the number of ultrahigh net worth individuals (UHNWIs) — those with over $30 million (Dh110 million) assets — grew by 5 per cent, or 77, to 1,681 in 2019 compared to 1,604 in the previous year. These numbers are projected to grow by 24 per cent to 2,079 by 2024.

The UAE has been ranked 29th in the world for housing the highest number of UHNWIs.

And while the number of billionaires in the UAE remain unchanged at 62 in 2019, the nation will be home to another five billionaires by 2024, taking the tally to 67.

In the GCC, millionaires with over Dh110 million is expected to grow by 26 per cent over the next five years to over 9,100. Over this period, Saudi Arabia and the UAE will be home to 57 per cent and 23 per cent of these UHNWIs, respectively.

“The rate of wealth creation in the GCC region is expected to remain strong. Over the next five years we expect the number of HNWIs to increase by 12 per cent on average and UHNWIs by over 26 prer cent over the same period,” said Taimur Khan, associate partner at Knight Frank Middle East. The Middle East is home to 16,581 UHNWIs, up from 10,043 from 2014, a 41 per cent increase.

Globally, the data showed that over 31,000 additional UHNWIs were created globally in 2019, an increase of 6.4 per cent.

North America dominates with more than double the UHNWI population of Europe — home to an additional 13,911 in 2019 compared to 4,682 in Europe.

The number of UHNWIs are predicted to grow by 27 per cent in the next five years to 2024, taking the population to just under 650,000. Out of the top 20 fastest-growing countries presented in the report, six are located in Asia, led by India (73 per cent growth); five are in Europe, led by Sweden (47 per cent); and three are in Africa, led by Egypt (66 per cent). The UK sits in 11th position with predicted growth of 31 per cent over the next five years.

“Knight Frank predicts that by 2024, Asia will be the world’s second-largest wealth hub outperforming Europe, with a forecast five-year growth of 44 per cent. However, even after such a steep rise, it will remain half the size of North America’s UHNWI population, which is predicted to increase by 22 per cent over the same period,” said Liam Bailey, global head of research at Knight Frank.

Swiss bank UBS said half of global wealth is concentrated in the Americas, followed by the Asia-Pacific with approximately 30 per cent, and the remainder in Europe, the Middle East and Africa.

“By segment, approximately half of global wealth is with high net worth individuals while ultrahigh net worth individuals hold approximately 30 per cent of global wealth, and the remaining approximately 20 per cent is within he affluent segment,” it said in a report.

Over the next four years, global wealth is expected to grow by 5–10 per cent annually, it said.

Regionally, wealth creation will likely be driven by the Asia-Pacific and North America. The share of the Americas is expected to remain stable over the next four years at approximately 50 per cent of global wealth, while the share of Europe, the Middle East and Africa is expected to further reduce as the Asia-Pacific grows. In particular, China’s share of global wealth is expected to grow to around 15 per cent by 2023, UBS said.