The UAE recorded the highest growth in wealth per adult in the Middle East and North Africa (Mena) region, according to a latest report by the Credit Suisse Research Institute.
The institute finds that from mid-2012 to mid-2013 aggregate global household wealth of the country increased by four per cent to $126,791. Globally, it grew by 4.9 per cent to $241 trillion despite the continuing challenges posed by the economic environment.
The region’s largest economy Saudi Arabia witnessed 0.7 per cent growth. Qatar recorded the highest average wealth per adult of $153,294, growing two per cent while UAE followed closely with $126,791, Kuwait was placed third in the region with an average wealth per adult of $119,101 but declined 0.3 per cent from last year.
The average wealth per adult in Oman and Bahrain witnessed two per cent growth from mid last year while Egypt’s wealth per adult fell 12 per cent to $ 7,285.
However, in terms of total wealth, Saudi Arabia ranked first with an estimated $0.6 trillion, closely followed by UAE with an estimated $0.5 trillion. Egypt ranked third, with an estimated $0.4 trillion.
Globally, wealth is expected to rise by nearly 40 per cent in the next five years, reaching $334 trillion by 2018. Credit Suisse expects that the pace of wealth generation in emerging markets will continue to be greater than that of developed markets. The share of wealth of emerging markets will likely reach 23 per cent by 2018 at $76.9 trillion, an increase of 0.5 per cent on average each year. The annual rate of increase is projected to be more than 9 per cent for emerging markets against 6.1 per cent for developed markets.
Estimates by Credit Suisse suggest that the number of global millionaires could exceed 47 million in 2018, a rise of nearly 16 million. While the number of millionaires in emerging economies is still far below the levels in the US (18.6 million) or Europe (15 million), it is expected to increase substantially in the next few years.
China could see its number almost doubling by 2018, raising the total to 2.1 million. Pushed by Brazil (an extra 186,000) and Mexico (an extra 87,000), Credit Suisse also expects a substantial increase in the number of millionaires in Latin America, which will reach almost one million in five years’ time.
“Our research shows that global wealth has doubled since 2000, quite compelling given some of the economic challenges of the last decade. We expect this trend to continue in the foreseeable future, driven largely by Emerging Markets’ strong economic growth and rising population levels,” Credit Suisse Research Institute’s Michael O’Sullivan said.