UAE, Qatar, KSA & Kuwait at Top For Ultra-Wealthy Households

The GCC has some of the highest densities of Super Rich people on the planet which is a perfect environment for Mega Project growth. According to the study by Boston Consulting Group(BCG) 'Ultra High Net Worth' households, defined as those with more than $100 Million in assets under management, were most highly concentrated in Saudi Arabia, Switzerland, Hong Kong, Kuwait, Austria, Norway, Qatar, Demark, Singapore and the UAE.

Qatar, Kuwait and the UAE also made it to the top ten in terms of highest proportion of millionaire households with 8.9 percent, 8.5 percent and 2.6 percent, respectively. The MENA Region showed significant growth in wealth as assets under management which rose 8.6 percent to $4.5 Trillion in 2010 with BCG projecting it will reach $6.7 Trillion by 2015.

Regional Trends in wealth management showed a very high proportion of cash and deposits, low share of bonds and very few managed funds in Middle Eastern household portfolios.

While 56 percent of GCC investors preferred to keep their investment in cash or very short term investments like bank deposits, 31 percent preferred to invest in regional or home equity markets with 13 percent opting to invest in bonds. The trend clearly shows the risk appetite of regional investors remains low, especially when compared to levels seen before the downturn.

In the GCC wealthy households controlled a majority of wealth with Saudi households controlling 81 percent of private wealth in the country followed by Kuwait with 68 percent, Qatar with 65 percent and the UAE with 63 percent.

For the Middle East as a whole the study observed that women controlled about $500 Billion or 22 percent of private wealth in the region. Offshore wealth from the MENA Region reached $1.4 Trillion, with the major proportion held in the UK, Channel Islands, Dublin and Switzerland.

Within the region Dubai sustains its position as most prominent offshore center in the Arab world, with Saudi Arabia, Turkey, Iran, Kuwait and Russia emerging as the most important origins of offshore wealth in the region.

BCG analysts said the recent political turmoil has reversed the trend towards onshoring wealth in some countries in the Middle East but it did not have any adverse impact in household wealth in the GCC.

"For the more stable Gulf states the onshoring trend continues. Some Gulf jurisdictions, such as Dubai, are now attracting more wealth from other Middle East countries as they act as offshore centers themselves," Markus Massi, Partner and Managing Director at BCG Middle East.

It should be clear that all this wealth in the GCC creates fertile ground for the Mega Project boom we are seeing in the region. Despite the world economic downturn the GCC is still going forward with a huge number of superlative Mega Projects and the overall wealth of the region will allow this growth to continue.

Source for much of the information in this post from:

http://www.cpp-luxury.com/