Dubai, UAE – The number of Ultra-High-Net-Worth Individuals (UHNWIs) - those with $30m or more in net assets – rose by 6,340 in 2016, taking the total to 193,490*, according to data provided by New World Wealth for The Wealth Report. This growth reverses the decline of 3% seen in 2015.
The increase has occurred despite on-going political and economic uncertainty around the world having more of an impact on future trends.
Dana Salbak, Head of MENA Research, Knight Frank, comments:
“The momentum gained in wealth creation in 2016, although relatively modest, was far from being a foregone conclusion, especially given that nearly three-quarters of respondents to our Attitudes Survey highlighted political uncertainty as a significant threat to their clients’ availability to create and preserve wealth.”
Whilst a clearer economic outlook for the UK and the US will be provided in the next 12-24 months, the report notes that in Europe, the UK will remain the front-runner in terms of its ultra-wealthy population, with a forecast 30% rise in UHNWIs over the next decade.
The USA is expected to see a higher rate of growth in its UHNWI population in the next 10 years than many other developed countries, despite the uncertainty surrounding the new President’s policies.
Andrew Amoils, head of research at New World Wealth, comments on factors that have continued to bolster wealth growth despite growing political and economic uncertainty:
“One key influence on income in 2016 has been the performance of stock markets in dollar terms. In many countries this was much stronger in 2016 than in 2015. There may be widespread uncertainty, but there are also strong fundamentals in many economies, with signs of real progress being made around regulation and policy which will help economic growth to flourish in some places.”
While the global population of UHNWIs is set to rise by 43% by 2026, The Wealth Report reveals considerable variation in growth rates in different regions and countries:
Countries that offer a fiscal and political ‘safe haven’, as well as excellent quality of life, are expected to see strong growth over the next decade in UHNWI populations and saw their numbers increase in 2016. Australasia, Canada, Malta, the UAE, Qatar and Monaco are examples of key ‘safe havens’ attracting migrating UHNWIs.
Asia is starting to challenge the USA in terms of the largest regional population of UHNWIs. At present, Asia is home to 27,020 fewer ultra-wealthy people than the US, but by 2026, this difference will have shrunk to just 7,068.
Asia is also set to strongly outperform Europe in terms of the rate of growth of UHNWIs over the next 10 years, with a 91% increase predicted, compared with 12% in Europe.
The growth in ultra-wealthy populations in Africa and Latin America will outpace that of Europe and North America over the next decade.
Predicted UHNWI growth by 2026*
% change
| |||||||
UHNWI $30m+
|
2006
|
2015
|
2016
|
2026
|
2006-2016
|
2015-2016
|
2016-2026
|
North America
|
55,810
|
69,270
|
73,100
|
95,860
|
31%
|
6%
|
31%
|
Europe
|
42,610
|
51,120
|
49,650
|
55,700
|
17%
|
-3%
|
12%
|
Asia Pacific
|
20,820
|
42,610
|
46,080
|
88,180
|
121%
|
8%
|
91%
|
Middle East
|
4,970
|
7,410
|
7,370
|
10,270
|
48%
|
0%
|
39%
|
Australasia
|
2,270
|
3,800
|
4,220
|
7,180
|
86%
|
11%
|
70%
|
Latin America & Caribbean
|
5,330
|
7,690
|
7,570
|
10,350
|
42%
|
-2%
|
37%
|
Africa
|
2,010
|
2,310
|
2,270
|
3,030
|
13%
|
-2%
|
33%
|
Russia and CIS
|
2,380
|
2,940
|
3,230
|
5,170
|
36%
|
10%
|
60%
|
TOTAL
|
136,200
|
187,150
|
193,490
|
275,740
|
42%
|
4%
|
43%
|
* All numbers in this release are rounded to closest ten, for exact numbers please contact press@knightfrank.com
http://www.knightfrank.com/wealthreport
For further information please contact press@knightfrank.com
Nicola Milton, Head of ME Marketing, +971 4 426 7000, Nicola.milton@me.knightfrank.com
Dana Salbak, Head of ME Research, +971 4 4267 681, Dana.Salbak@me.knightfrank.com
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 413 offices, in 60 countries, across six continents. More than 14,000 professionals commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.
Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, Bahrain and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. www.knightfrank.ae
© Press Release 2017
