UAE third in Mena for average personal wealth

Dubai: The UAE ranks third in the Middle East and North Africa (Mena) region in average wealth per adult with $115,774, up 104 per cent since 2000, according to the second annual Global Wealth Report published by the Credit Suisse Research Institute.

In the Mena region, Qatar recorded the highest average wealth per adult of $146,623 in 2011, a rise of 456 per cent from 2000, while Kuwait followed closely with $134,592, up 156 per cent

Among the largest economies in the region, Saudi Arabia's average wealth per adult rose 56 per cent from 2000 to $35,959 while Egypt's climbed 47 per cent to $10,421.

While the average wealth per adult of many Mena countries saw substantial growth in 2011 compared to last year, Egypt was one of the countries for which growth remained stagnant. However, in terms of total wealth Egypt, with an estimated $0.5 trillion, ranked just behind Saudi Arabia with $0.6 trillion.

The Credit Suisse Global Wealth Report, which finds the Asia Pacific emerging as the key contributor to global wealth growth, accounting for 36 per cent of all global wealth creation since 2000, and 54 per cent since January 2010.

The study finds that global wealth has increased 14 per cent from $203 trillion in January 2010 to $231 trillion last June.

In the next five years, global wealth is expected to rise 50 per cent to $345 trillion and wealth per adult will increase 40 per cent to $70,700, led by growth in emerging markets.

"Our Global Wealth Report re-confirms again that these are times of unprecedented economic change, and a radical reconfiguration of the world's econ-omic order is taking shape. Emerging markets are important drivers of the global recovery and remain the key growth engines of global wealth," said Osama Abbasi, Chief Executive Officer Asia Pacific at Credit Suisse.

The report finds that emerging markets have considerable scope to increase personal wealth given their much lower ratio of net financial assets to income and a much lower debt-income ratio than found in mature economies.

"Credit Suisse believes this fast emerging wealth will drive new trends in consumption and investment in Asia, underpinning Credit Suisse's proprietary thematic research initiatives on Global Megatrends of Demographics and Multipolar World. The much higher debt per adult level in Europe versus Asia, together with the much higher wealth growth rate in Asia versus Europe, suggests there may be scope for significant mutual collaboration to help mitigate the euro debt crisis," said Giles Keating, Global Head of Research for Private Banking and Asset Management at Credit Suisse.

The report projects global wealth will rise 50 per cent in the next five years to $345 trillion in 2016, equivalent to 8.4 per cent growth per year. During this period wealth of emerging economies is expected to leapfrog the developed world, due to their more promising growth prospects. Wealth in China and Africa is projected to rise by over 90 per cent to $39 trillion and $5.8 trillion in 2016 respectively, while wealth in India and Brazil is forecast to more than double by 2016 to $8.9 trillion and $9.2 trillion.

The report compares the projected increase in wealth in the fastest growing emerging economies in the next five years, against the growth of wealth in the US over the course of the 20th century, forecasting the dramatic leapfrogging of emerging economies. At $4.1 trillion, India's total wealth in 2011 is comparable to the US in 1916. However, it is projected to reach $8.9 trillion in the next five years, equivalent to what USA achieved in 30 years between 1916 and 1946. Similarly, Brazil's wealth is expected to grow from $4.5 trillion in 2011 to $9.2 trillion by 2016, equivalent to the level of wealth gained in the US over 23 years from 1925 to 1948.

The number of global millionaires is projected to rise by 17 million to 47 million by 2016. Emerging economies are expected to catch up with developed nations with a significant increase in the number of millionaires.