The total household wealth amounted to $2.3 trillion in Saudi Arabia, compared to $1.2 trillion in the United Arab Emirates (UAE), according to estimates by the latest Global Wealth Report, launched jointly by Credit Suisse and UBS.
However, owing to Saudi Arabia’s higher population, wealth per adult in the UAE at the end of 2022 ($152,556) was 68% higher than that in Saudi Arabia ($90,975). The proportional difference has fallen over time. Earlier this century, wealth per adult in the UAE was more than double that of Saudi Arabia.
"Our estimates of financial and non-financial wealth are derived from the relationship observed in other countries between household wealth and variables such as household consumption, share prices and house prices," the report said.
According to the report estimates, the share of financial assets in gross assets is similar in the two countries and remained relatively stable until 2022. At the end of 2021, financial assets made up 59.5% of gross assets in Saudi Arabia and 58.8% in the UAE, the report estimates. However, in 2022, these ratios fell to 56.7% in Saudi Arabia and 56.5% in the UAE.
Household debt is low by international standards. The ratio of household debt to gross assets in 2022 was 5.5% in Saudi Arabia and 7.8% in the UAE, with little change since 2021.
Net worth per adult in Saudi Arabia rose 8.4% in USD terms in 2021 using current exchange rates and continued to rise in 2022 by 6.6%. In the UAE, growth rates of wealth per adult were again similar in 2021 using current exchange rates at 18.7%.
The share of the top 1% in the wealth was 37.6% in Saudi Arabia and 44.6% in the UAE. These values place both countries toward the top of the international inequality ranking.
The UAE hosts a disproportionate number of wealthy expatriate entrepreneurs, some of whom relocated after the global financial crisis, the report said. -TradeArabia News Service
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