The United Arab Emirates is forecast to mint four new millionaires a day over the next five years leading up to the Expo 2020, which seems incredible, except this number actually represents slowing growth. In 2010, the UAE boasted 35,960 millionaires but grew by 40 percent to 50,595 by the end of last year. Growth moving forward is predicted to increase by only 15 percent by the end of 2019. Regardless, according to WealthInsight, UAE citizens have been becoming richer over the last few years.
There will be more than 7,700 new millionaires in the UAE by 2019, expected to reach 58,355. The report goes on to suggest that the local economy has been boosted by projects in preparation for the Expo 2020 event. Approximately 1,548 residents are predicted to join the ranks of millionaires each year, or 4.2 new millionaires per day for the next 5 years.
Minting millionaires: UAE to create 4 new millionaires per day http://t.co/pkkVhGJl0V
— Emirates 24|7 (@Emirates247) March 23, 2015
Both Saudi Arabia and Qatar lagged behind the UAE in last year’s report with 49,168 and 34,785 millionaires respectively. However, Saudi Arabia is predicted to surpass the UAE by 2019, with a predicted 59,940 millionaires.
The UAE, Saudi Arabia, Qatar and Kuwait boasted the highest levels of millionaires within the Middle East in general compared with other nations. However, Qatar and also Bahrain have some of the fastest growing millionaire populations regionally. By 2019 the report predicts that the number of millionaires in the Middle East will surpass 220,000.
However, as with all projections, it is important to note that nothing is set in stone.
— WealthInsight (@Wealth_Insight) March 12, 2015
“Several factors support fast-growing number of HNWIs [high net worth individuals] in Bahrain and Qatar but the most obvious influential reason is the size of their economies. Being smaller and less developed markets, Bahrain and Qatar stand greater chance for growth than matured markets such as the UAE and Saudi Arabia,” Dr. Roselyn Lekdee, Analyst at WealthInsight, told Emirates 24/7.
The growth specifically within the UAE is credited in part to the upcoming 2020 Expo and the new projects and opportunities created surrounding this large-scale international event. Leading up to the Expo, the residents of the UAE are expected to benefit overall as well as the the economy.
The UAE has also seen the announcement and the start of several new interesting and unique building development projects in recent months. Many projects were formerly set aside, delayed or canceled while the economy stalled. Moving forward, it seems the trend still seems upward for now.