Mideast's ultra-rich 'not linked to oil'
Beirut, March 13, 2013
For most ultra high net worth individuals (UHNWIs) in the Middle East, the oil sector is not the source of their wealth, according to a new research.
The typical Middle Eastern UHNWI is not an oil baron, said the study conducted by Wealth-X, a UHNW business development solution for global private banks, luxury brands, educational institutions and non-profit organisations.
"He or she is most likely to represent the finance and banking sector or an industrial conglomerate," said Wealth-X director of business development, Middle East and Africa, Michel Nassif.
Collectively, Middle Eastern UHNWIs own $26 billion worth of luxury assets, ranging from private aircraft to art and other collectibles, it said.
According to Wealth-X, the average Middle Eastern UHNWI is married, 56 years old and self-made with an average net worth of $151 million and liquid assets of $46 million. On average, Middle Eastern UHNWIs each own $5.7 million worth of luxury assets.
Although 55 per cent of the total UHNW population in the Middle East are self-made individuals, 14 per cent of of them inherited their wealth and 31 per cent have built upon their inherited wealth. Gender representation is skewed with female UHNWIs at 6 per cent of the UHNW population.
Wealth-X CEO, Mykolas D Rambus said: "With an average liquidity higher than that of the average US UHNWI, there is considerable room for greater luxury spend by Middle Eastern UHNWIs. Our analysis shows that wealth creation is largely concentrated in the UAE, Saudi Arabia and Kuwait, with a new generation of increasingly younger male and female UHNWIs emerging.
"Understanding the UHNW population in these three countries is vital for institutions and professionals who seek to expand their businesses in the region," he said. - TradeArabia News Service
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