Saudi Arabia to witness surge in number of millionaires in next decade: report

Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia is poised for a 105 percent surge in average wealth per person in the next 10 years, jumping from the current $54,000, a new study showed.

According to Henley & Partners’ BRICS Wealth Report, the Kingdom presently holds the sixth position within the bloc in terms of high-net-worth individuals.

The consulting agency added that Saudi Arabia currently hosts 58,300 millionaires, encompassing 195 centi-millionaires and 22 billionaires, marking a significant 32 percent increase since 2013.

Centi-millionaires, defined as individuals with assets exceeding $100 million, contribute to this affluent demographic.

The report highlighted India as the leader in the per capita wealth list, with a projected increase in assets by 110 percent over the next 10 years, rising from the current $6,800.

Additionally, the average wealth per capita in the UAE is expected to rise by 95 percent by 2033, followed by China and Ethiopia at 85 percent and 75 percent, respectively.

Similarly, South Africa is projected to increase by 60 percent in this segment, while Egypt is predicted to grow by 55 percent by 2033.

“These countries exhibit divergent economic conditions: Saudi Arabia and the UAE enjoy robust economies, while Egypt confronts systematic economic challenges,” said Robert Mogielnicki, a senior resident scholar at the Arab Gulf States Institute in Washington.

“There are also major differences in each country’s respective positions in the international order and how senior government actors therein pursue political and diplomatic interests on the world stage,” he added.

The document further reveals that the total investable wealth currently held in the BRICS bloc amounts to $45 trillion, with the millionaire population in these nations expected to surge by 85 percent in the next 10 years.

Presently, there are 1.6 million individuals in BRICS countries with investable assets exceeding $1 million, encompassing 4,716 centi-millionaires and 549 billionaires.

According to the findings, private wealth in China experienced a substantial 92 percent growth over the last decade. The Asian giant is currently home to 862,400 millionaires, including 2,352 centi-millionaires and 305 billionaires.

China is closely followed by India, where private wealth soared by 85 percent over the last 10 years. The country currently has 326,400 millionaires, including over 1,000 centi-millionaires and 120 billionaires.

Since 2013, the millionaire population in the UAE has surged by 77 percent, with the Emirates now boasting a total of 116,500 millionaires.

“Economically, non-Western nations — with BRICS at the vanguard — are pushing the globe into a new reality: An emerging economic, social, and monetary status quo that is upending what the world has accepted as normal for nearly eight decades,” commented Jeff D. Opdyke, a personal finance and investment expert on the report.

However, the number of millionaires in South Africa witnessed a decline of 20 percent since 2013, while in Iran, the number fell by 38 percent during the same period.

Chinese capital Beijing secured the top spot with the highest number of high-net-worth individuals, currently hosting 125,600 millionaires, which includes 347 centi-millionaires and 42 billionaires.

Following Beijing, Shanghai and Dubai claim the second and third positions with 123,400 and 72,500 millionaires, respectively.