By DINA AL SHIBEEB
Al Arabiya with Agencies
Saudi Arabia, the Arab world’s largest economy, has the highest number of super-rich households worth more than $100 million in the world.
The Boston Consulting Group said that other Gulf countries such as Qatar, Kuwait and the United Arab Emirates also ranked among the 10 nations with the highest density of ultra-high net worth individuals (UHNW).
The BCG study said that it measured Saudi Arabia UHNW per 100,000 households, at 18, while Kuwait had 8, Qatar had 6 and the UAE had 5.
“Given the demographics and overall wealth of these petroleum-rich countries we would expect a higher proportion of UHNW households than in other parts of the world,” said Sven-Olaf Vathje, partner at BCG Middle East. “Growth in assets under management also reflects the strong fundamentals of the region, driven by continuing strong petroleum prices.”
BCG’s report showed that the wealth of the oil-rich Gulf countries is also growing at a rate unmatched elsewhere.
Bolstered by high oil prices, wealth in Middle East and North Africa grew 8.6 percent to $4.5 trillion in 2010, and is expected to reach $6.7 trillion by 2015, BCG said.
In order to tap into the region’s growth wealth, BCG said international and local banks are pushing for investment in the Gulf.
“You see a lot of banks in the UAE but also the other GCC countries that are investing actively into wealth management. It’s pretty clear why that’s the case [as] it’s a very stable source of revenue if you do it right,” said Markus Massi, partner at BCG Middle East.
“Many banks have seen their investment banking revenues and corporate banking revenues go through some roller coaster over the last couple of years so the desire to participate in this global business is very strong,” he said.
Wealth managers are also targeting the women in the six Gulf States, who hold around 22 percent, or $0.7 trillion, of the region’s wealth.
But the Gulf countries’ rankings for millionaires are not lavishly the same.
Singapore topped the rankings with a 33 percent rise in its number of millionaires. The US had the most $1 million-plus households, with 5.2 million, followed by Japan and China.
It is estimated that the ranks of millionaires swelled by 12 percent in 2010 on a global level.
Global assets under management rose by 8 percent to $121.8 trillion in 2010, beating the study’s previous peak of $111.8 trillion in 2007
(Dina Al Shibeeb, an editor at Al Arabiya English, can be reached at: dina.ibrahim@mbc.net)
