Middle East: Knight Frank
The Gulf Cooperation Council (GCC) countries dominate a new index created exclusively for The Wealth Report by specialist luxury agency Ledbury Research.
The Big Spenders Index tracks the 10 locations most likely to see strong growth in big-ticket spending by ultra-wealthy residents or visitors.
Each location is ranked based on six categories, including wealth growth, luxury store footprint and luxury goods spending.
Qatar, Saudi Arabia and Kuwait all ranked in the top 10, with the three nations performing especially well on the basis of their propensity to spend on imported luxury goods and healthy appetite for premium travel. In addition, strong wealth growth in Qatar helped the country to take third place on the table.
Significant amounts of spending by the very wealthy, particularly in London, helped the UK to achieve the number one position, as well as the relative strength of the country's economy. Over £8bn of goods are now sold by luxury brands each year in the UK, according to Ledbury Research's estimates.
A surge in its UHNWI population and rising luxury consumption propelled India to fifth place in the index.
China, despite a dip in its predicted economic growth and government anti-graft measures that have affected luxury demand, came second. The Chinese are already the single biggest consumers of luxury goods, accounting for almost 30% of global spend.
Andrew Shirley, Wealth Report Editor, says: "The results of this new index are fascinating and it will be particularly interesting to see how the rankings change next year in light of falling oil prices and other economic shifts."
Madelaine Ollivier, a luxury analyst at Ledbury Research, says: "We have consistently argued that the Chinese luxury market remains very attractive given the burgeoning wealthy population and rapidly growing middle class."
Factors
1. Luxury store footprint
2. Wealth growth
3. Premium travel and spending
4. Propensity for spending on imported luxury goods
5. Big ticket luxury goods spending
6. Estimated number of UHNWIs
Source: Ledbury Research
For further information, please contact:
Press@knightfrank.com
Ledbury Research
Stuart Rutherford: Stuart.Rutherford@ledburyresearh.com
Nicola Milton, Marketing & PR, Knight Frank, +971 (0) 56 6116 368, Nicola.Milton@me.KnightFrank.com
Khawar Khan, Research Manager, Knight Frank, +971 56 1108 971, Khawar.Khan@me.KnightFrank.com
Stefan Burch, GM KSA, Knight Frank, +966 53 0893 297, Stefan Burch, StefanBurch@me.knightfrank.com
Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, Bahrain, Qatar and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and together with its New York-based global alliance partner, Newmark Grubb Knight Frank, operate from over 335 offices, in 52 countries, across six continents and has over 12,000 employees. For further information about the Company, please visit www.knightfrank.com or www.knightfrank.ae
© Press Release 2015
