Worldwide Concentration of Wealth: Middle East
Capgemini U.S. LLC In Collaboration with Merrill Lynch Wealth Management
Regional Facts: Middle East
The rate of growth in the size and wealth of the Middle East's HNWI population was slower than in other regions, largely due to the impact of the Dubai crisis and the modest performance of key drivers of wealth.
* In 2009, Middle East HNWI population and wealth grew by only 7.1% and 5.1% respectively.
* The United Arab Emirates (UAE) lost around 19% of its HNWI population in 2009, mainly due to the crisis in Dubai and the significant fall (-48.0%) in real estate prices.
* In the Middle East, HNWI holdings of real estate dropped to 23% of all investments from 25% in 2008 as hotspots such as Dubai experienced a major slump in demand.
* Foreign currency investment was much greater in the Middle East (20% of alternative investment allocations) than the global HNWI average (13%) as HNWIs in the region sought to hedge against local currency fluctuations.
* Middle East HNWIs dedicated 21% of their real-estate portfolios to farmland and undeveloped property in 2009, far more than the 14% average, largely because undeveloped land has been in such high speculative demand during the real-estate boom in recent years.
* Real GDP contracted 2.7% in the UAE in 2009, while it remained relatively flat (0.2%) in Saudi Arabia.
* Market-capitalization growth was relatively modest in Saudi Arabia and the UAE in 2009 (29.2% and 16.6% respectively).
Regional Facts: Middle East
The rate of growth in the size and wealth of the Middle East's HNWI population was slower than in other regions, largely due to the impact of the Dubai crisis and the modest performance of key drivers of wealth.
* In 2009, Middle East HNWI population and wealth grew by only 7.1% and 5.1% respectively.
* The United Arab Emirates (UAE) lost around 19% of its HNWI population in 2009, mainly due to the crisis in Dubai and the significant fall (-48.0%) in real estate prices.
* In the Middle East, HNWI holdings of real estate dropped to 23% of all investments from 25% in 2008 as hotspots such as Dubai experienced a major slump in demand.
* Foreign currency investment was much greater in the Middle East (20% of alternative investment allocations) than the global HNWI average (13%) as HNWIs in the region sought to hedge against local currency fluctuations.
* Middle East HNWIs dedicated 21% of their real-estate portfolios to farmland and undeveloped property in 2009, far more than the 14% average, largely because undeveloped land has been in such high speculative demand during the real-estate boom in recent years.
* Real GDP contracted 2.7% in the UAE in 2009, while it remained relatively flat (0.2%) in Saudi Arabia.
* Market-capitalization growth was relatively modest in Saudi Arabia and the UAE in 2009 (29.2% and 16.6% respectively).
posted by Hanan Elbadry at 3:01 PM
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