The number of ultra-high-net-worth individuals (UHNWIs), those with assets of $30 million or more, in the Middle East is predicted to grow by nearly a quarter in the next five years, with the region to remain the fourth largest wealth hub in the world.
Saudi Arabia’s UHNWI population grew by 227 percent over the last five years, the fastest growth rate globally, according to Knight Frank’s Wealth Report 2021.
It said Saudi Arabia last year saw 617 more UNHWIs to total 7,020, a growth rate of nearly 10 percent.
It added that in the five years to 2025, almost 330,000 new dollar millionaires will be created in the Middle East, up by 29.4 percent from 2020 levels. It also said that UHNWI growth to 2025 in the UAE is forecast to grow by 22 percent.
Taimur Khan, head of research at Knight Frank Middle East, said: “The pandemic has impacted the fortunes of many in the Middle East, and Middle Eastern HNWIs and UHNWIs were not spared, with the total number of each decreasing by 11.3 percent and 10.1 percent in 2020 respectively.
“However, this decline was not uniform across all countries, In Saudi Arabia over this period, the number of UHNWIs increased by 9.6 percent, the 10th fastest growth rate globally.”
He added: “As the region continues its various economic diversification programs, we expect that there will continue to be significant growth in the number of HNWI, UHNWI and billionaires residing in the region.”
Taimur Khan, head of research at Knight Frank Middle East
Looking back at 2020, Knight Frank’s wealth sizing model revealed that the number of UHNWIs globally increased by 2.4 percent, one-third of the growth rate in 2019 bringing the total to more than 520,000.
China saw the largest increase in its UHNWI population (9,594 additional UHNWIs) followed by the US (6,080) and Japan (1,199).
Henry Faun, partner, Knight Frank Private Office, Middle East said the Middle East is expected to remain as the world’s fourth largest wealth hub. “This reinforces the Middle East as a globally significant centre for wealthy individuals looking ahead,” he added.
Henry Faun, partner, Knight Frank Private Office, Middle East
According to Knight Frank’s report, the number of UHNWIs around the world is predicted to grow by 27 percent in the next five years to 2025 taking the population to 663,483. Over the same period, the number of millionaires globally is set to rise by 41 percent.
Knight Frank predicted that Asia is likely to see the largest rise in the number of UHNWIs with growth of 39 percent. Europe will retain its crown as the second largest wealth hub with expected growth of 23 percent, bringing the total number of UHNWIs to 185,860.
Liam Bailey, global head of research at Knight Frank said: “Asia is the key wealth story. The US is, and will remain, the world’s dominant wealth hub over our forecast period, but Asia will see the fastest growth in UHNWIs over the next five years… By 2025, Asia will host 24 percent of all UHNWIs, up from 17 percent a decade earlier. The region is already home to more billionaires than any other.”
Liam Bailey, global head of research at Knight Frank
Africa is expected to see the second biggest regional five-year UHNWI growth rate of 33 percent.
According to the Knight Frank Attitudes Survey, a survey conducted amongst leading private bankers and wealth advisers, half said their clients’ wealth had increased in 2020, with that figure increasing to 67 percent in the Middle East.
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