By Andy Sambidge
New report also shows Kuwait has fourth biggest concentration of millionaires in world.
Millionaire households owned more than half of the wealth in the Middle East and Africa region in 2009, according to a new study by the Boston Consulting Group (BCG).
The report also showed that the percentage of assets under management (AuMs) owned by the established wealthy was the highest in the was the highest in the world.
According to the study, Kuwait stood fourth in a world ranking of concentration of millionaire households (8.4 percent) with Qatar fifth (7.4) and the UAE in sixth position (6.2).
In terms of asset classes, the biggest proportion of the wealth of Middle East and African households was held in cash and deposits (54 percent) followed by equities (25 percent) and bonds (21 percent) in 2009.
Cumulatively, the region had a revenue pool of about $10bn in 2009 with a good portion of these revenues accrued in offshore financial centres.
“Assets under management in the Middle East and Africa rose by 13 percent in 2009 to reach $3.9tn in relation to $3.5tn in 2008. This development comes at the heels of a dip of 9 percent in 2008 in relation to 2007,” said Dr Sven-Olaf Vathje, partner & managing director at BCG Middle East.
“The GCC countries contribute almost half of the Middle East and African wealth. From a global perspective, the high concentration of wealth, the cash heaviness of portfolios, and a high share of offshore wealth – up to 45 percent in Kuwait – are almost unique features”, added Vathje.
The report said global wealth staged a remarkable comeback last year, increasing by 11.5 percent to $111.5tn.
The US had by far the most millionaire households (4.7m), followed by Japan, China, the UK and Germany.
As we say in the Arab world: If it lasted for the one before you, you wouldn't have gotten it. All wealth is going to perish, this is life. Wealthy & rich today, poor and wretched soon.
Dear Mulham, If Rich and Wealthy were to perish what will happen to the poor. Be optimistic and suggest something to the poor to become rich and not vice versa!!!!!
if the rich get poor, as I have said earlier, then this means that the wealth is going to be transferred and owned by others, and this case scenario, it would be the poor who DIDN'T have it before, and this my friend Abu Zahra, is the definition of a CYCLE.
"If Rich and Wealthy were to perish what will happen to the poor. " Just because they're rich does'nt always mean they have more brains! Most wealth/land (around the world) has been handed down the generations since the day it was taken by the hand of the sword. The poor are usually far more resourceful and adaptable, take money from the rich and not too many would be able to cope.