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Saudi Prince AlWaleed bin Talal Bin Abdulaziz Al Saud.Nicolas Kovarik / IP3 / Getty Images
- The Middle East was the only region in the world where the ultra-rich did not finish 2018 worse than they had started, according to the Capgemini World Wealth 2019 report.
- High net worth individuals in Saudi Arabia and Kuwait performed best in the region, while those in the United Arab Emirates did not achieve the same results, according to Capgemini.
- Net badets of wealthy individuals in North America remained stable in 2018, while wealthy populations in the Asia-Pacific region, Europe and Latin America declined, Capgemini found.
- Visit the Business Insider home page for more stories.
The portfolios of wealthy individuals in the Middle East outperform their counterparts around the world.
According to the report published by French technology consulting firm Capgemini in its 2019 World Heritage report, which examines how wealthy individuals manage their wealth. The report revealed that 2018 was the first time in seven years that wealthy individuals – defined as having a net worth of more than a million dollars – across the globe were seeing their fortunes shrink.
The report, which is currently in its 23rd edition, revealed that rising oil prices and economic reforms have helped the collective wealth of wealthy Middle Easters to increase by 4% in 2018. And their wealth is n & # 39; The number of HNW individuals has also increased by 6% in 2018.
The net worth of wealthy individuals in the Middle East has had a "mixed performance" in recent years as tax reforms have reduced the region's dependence on oil, Chirag Thakral, deputy director of Capgemini's financial services market intelligence group, told Business Insider.
Over the last three years, Saudi Crown Prince Mohammed Bin Salman has worked for what he calls "Vision 2030", a plan to diversify the kingdom's economy. The plan includes measures to increase employment, social responsibility and build a $ 500 billion futuristic city, according to his website.
Read more: The crown prince of Saudi Arabia would like to build a 500 billion dollar city with artificial rain, a very dark beach and robotic dinosaurs
"All of these policies have begun to help the entire economy, which has favored wealthy individual growth," said Thakral. "There is a dynamic business culture. "
How did HNW individuals behave in 2018, by region
The region's HNW population growth was particularly strong in Saudi Arabia and Kuwait, where the wealth of HNW individuals grew by 4% and 6%, respectively, according to the Capgemini report.
On the other hand, wealthy individuals in the UAE have not been able to escape the volatility of global markets because of the deep economic ties that they have with the company. 39; West, Thakral I said. Emirati citizens with high net worth have lost 9% of their collective net worth, Capgemini found.
Read more: French billionaires have earned more money this year than their counterparts in other countries, and they partly thank China
High net worth individuals in Asia have been the most affected by market instability, reported Business Insider. Asian nationals of HNW were responsible for half of the decline in global wealth in 2018. Billionaires in the Asia-Pacific region lost 8.7% of their collective net worth and 13.4% of their ranks in 2018, according to the 2019 billionaire census of Wealth-X.
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