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NWBs...represent largest concentration of wealth in the world

17pc regional ‘new wealth builders’ earn from real estate

JEDDAH, March 30, 2015

About 78 per cent of new wealth builders (NWB) in the Middle East do not consider themselves wealthy, with 17 per cent of them having earned their wealth from real estate investments and land developments, according to a report.

The new Economist Intelligence Unit (EIU) global report, sponsored by Citi, ‘The New Wealth Builders (NWB)’, revealed that households with financial assets of $100,000 to $2 million comprise the world’s fastest growing wealth segment when measured by growth trends across 32 countries around the world.

Yet its growth dynamics, lifestyles, values and investing habits are generally underreported compared with other segments.

The ‘New Wealth Builders’ currently represent the largest concentration of wealth in the world, led by North America, Asia Pacific and followed by the Middle East.

The Middle East New Wealth Builders in the report are represented by the UAE, Bahrain, Egypt and Saudi Arabia.

The New Wealth Builders currently have $88 trillion in global assets and are expected to grow at a annual average rate of 7.1 per cent, to reach $145 trillion by 2020.

Since 2010, the group has grown faster than any other wealth sector - including high net worth or mass market segments - and is forecast to grow even faster in the next decade.

Dinesh Sharma, head of consumer banking for the Middle East and North Africa, said: “NWBs were barely on the economic radar as this century began; today, however, they constitute a formidable and hardworking segment driving growth and economic expansion in the UAE.

“They are self-made, socially conscious and sharply focused on growth.”

The report also found that about 68 per cent of NWBs in the Middle East donate a percentage of their income to charity, as compared to 63 per cent in North America.

About 66 per cent of NWBs in the region also factor charities and philanthropies into their estate planning, as compared to only 43 per cent in North America.

Meanwhile, about 81 per cent of NWBs in the Middle East and North Africa (Mena) region use digital banking channels on a regular basis (81 per cent), with 19 per cent of NWBs stating that domestic and global economic and political instability are the biggest threats to their wealth.

“The UAE is a particular area of potential growth due to the rapidly expanding affluent and emerging affluent customer segments, relatively low consumer leverage and accelerating urbanisation,’’ said Sharma.

“We continue to actively pursue Citi’s growth strategy for the consumer business in the UAE by implementing our smart branch ecosystem, enhancing our digital capabilities, realigning our wealth value proposition and strengthening our sales model towards providing a remarkable customer experience,” he added. - TradeArabia News Service




Tags: Middle East | new | wealth | builder |

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