By Arabian Post Staff
The changing landscape of the US$360 trillion (Dh1,321 trillion) global wealth is now more than four times the global GDP of US$88 trillion. The wealth per adult reached a new record high of US$70,850, or 1.2% above the level of mid-2018 with Switzerland topping the biggest gains in wealth per adult this year, according to a latest report by Credit Suisse.
Aggregate global wealth rose by US$ 9.1 trillion to US$ 360.6 trillion, representing a growth rate of 2.6%. The number of new millionaires was also relatively modest, up 1.1 million to 46.8 million. The United States added 675,000 newcomers, more than half of the global total. Japan and China each contributed more than 150,000, but Australia lost 124,000 millionaires following a fall in average wealth.
The United States also accounts for 40% of dollar millionaires worldwide and for 40% of those in the top 1% of global wealth distribution. Wealth in China started the century from a lower base, but grew at a much faster pace during the early years. It was one of the few countries to avoid the impact of the global financial crisis. China’s progress has enabled it to replace Europe as the principal source of global wealth growth and to replace Japan as the country with the second-largest number of millionaires. More tellingly, China overtook the United States this year to become the country with most people in the top 10% of global wealth distribution.
More than 250 High Net-worth Individuals (HNWIs) will listen to 32 wealth thought-leaders on the paradigm shift in the global wealth landscape at the fourth edition of the annual Wealth Arabia Summit (WAS) that will take place at the Mina A’ Salam hotel within Madinat Jumeirah complex on Tuesday.
Opportunities in real estate remain a top interest among HNWIs in MENA. The region is home to 7,130 HNWIs with a combined net worth of US$1 trillion or a minimum of US$30 million each in investable assets. More than 74 percent of HNWIs based in MENA own at least one home outside their country of residence, the highest in the world. As GCC real estate sector bounces back from a challenging decade, emerging markets are now attracting regional investors.
The panel on Real Estate in the GCC in 2030 will zero in on emerging opportunities backed by regulatory frameworks and will be discussed by Amer Khansaheb, Managing Director at Khansaheb Investments; Murray Strang, Head of Dubai Office, Middle East, Savills; and Mansour Alsalem, Head of Real Estate Investment Funds, Albilad Capital.
For real estate investment outside GCC, a dedicated panel discussion will take place to be led by Racha Alkhawaja, Group Chief Distribution and Development Officer, Equitativa Group; Richard Bradstock, Head of Middle East, IP Global Ltd.; and Joseph Morris, Partner, Global Capital Markets, Knight Frank.
Further on new opportunities for investments, it is worthy to note that MENA wealth clients are keen to include socially responsible investing or sustainable investing, as well as alternative investments in their portfolios. This shift in alternative investment will be discussed by Alex Gemici, Chairman and CEO, Greenstone Equity Partners, while the discussion on sustainable investment aligned with UN’s ESG will be led by Niels Zilkens, Head of Arabian Gulf and NRI, UBS Global Wealth Management.
Disruptive technology has encroached multiple sectors and industries, including wealth management. The recent years have seen investors not only diversifying their interest but reinventing the way they invest. Providing the big shift are young wealth investors who are tech-savvy and are influential in breaking the traditional business mindset by appreciating new market value and channels for investments.
Particular interest in this area will be presented at the Summit by Mahmoud Sulaiman, Director of Investera, to understand how disruptive technology is reshaping the investment landscape. A separate panel discussion will delve deeper on tokenisation of assets to be led by Ruslan Gavrilyuk, Founder & CEO, TaaS Capital Fund; Tom Bicknell, Partner, Pinsent Masons LLP; Charles-Henry Monchau, Managing Director, CIO & Head of Investments, Al Mal Capital; and Stephan Horvath, Partners, Burj Financial and Founder of Ideations, with Adrianus Schoorl, Local Partners, White & Case LLP as moderator.
The Summit also aims to match the rousing investor interest following the success of Careem and Souq. Panelists Hans Henrik Christensen, VP, Dubai Technology Entrepreneur Campus; Walid Hanna, Founder & CEO, Middle East Venture Partners; and Angus Peterson, Partner, Iris Capital (STC Venture) will lead the discussion on investing in start-ups and how to identify its exponential growth potential, with Mirna Sleiman, CEO, Fintech Galaxy, as moderator. Investors will also gain insights on how to spot the next unicorn as will be presented by Mishal Kanoo, Chairman, The Kanoo Group.
GCC, home to 75 to 100 single family offices, is not immune to the issues and pitfalls of managing a family office. H.E. Zulfiquar Ghadiyali, CEO, Private Office of H.H. Sheikh Tahnoon Bin Saeed Bin Tahnoon Al Nahyan will lead the discussion on this topic along with Anton Gans, Founder & Managing Partner, Zenith Family Office; Adil Al Zarooni, Chief Executive Officer, Al Zarooni Emirates Investments; and Abhishek Sharma, Founder & CEO, Foundation Holdings.
The imminent entry of young generation taking the business reign is seen as an internal threat among the older generation and wealth advisors. The Summit will hold a panel discussion to present ways to bridge generational gap combining wisdom and fresh approach in business to ensure smooth transition and protection of wealth and legacy for the next generation. Dr. Anuraag Guglaani, Partner, Organization Transformation & Expansion Advisory, MB Group; Zoe Cousens, Wealth Management Consultant, Castellet Consulting Ltd.; Shadi Al Nasr, SVP-Head of Sadara Wealth Management, United Arab Bank; and Amna Al Owais, Chief Registrar, DIFC Courts will lead the discussion on succession, wills and inheritance.
Also published on Medium.