The number of millionaires in the UAE increased
last year and this trend will continue over the next five years as growing
investment opportunities will generate more millionaires locally as well as
political and economic stability will also woo rich individuals and families
from foreign countries, say researchers and analysts.
According to the latest report released by global
consultancy Knight Frank, the number of millionaires, or high net worth
individuals, in the UAE expanded 3 per cent to 53,798 last year from 52,344 in
the previous year. The numbers are projected to grow 14 per cent to 61,292 by
2023. Similarly, the number of ultra-high net worth individuals (UHNWIs) – who
own more than $30-million wealth – in the UAE grew from 672 in 2017 to 693 last
year and will reach 799 by 2023.
The study predicted that the number of UHNWIs in
Dubai and Abu Dhabi will increase from 440 last year to 511 in 2023 and from
192 to 223, respectively.
Issam Kassabieh, senior financial analyst at
Menacorp, believes that the ultra-rich will continue to flock to the UAE in
“At the moment, Dubai is attractive for
foreigners. Now, it is a place not just for good investments returns but also
to stay for long term. Government is focusing on key sector so that the cash
comes in and stays in the country through different measures such as longer
visas and ease of doing business initiatives,” Kassabieh said.
“The UAE is an attractive place for foreign
investors – financial markets are at an early stage and have a long way to go.
Real estate was the first to anchor the economy and that brought foreign
investors here. Going forward, the focus will be on more diverse sectors. Also,
the ease of doing business chart shows the UAE is first in the region and also
competitive globally,” he added.
“Dubai offers a full package – good quality of
life, healthcare, education and investment opportunities. All these complement
each other and attracts high net worth individuals to this country. In addition
to that, diversity of population plays a big role in this,” said
Knight Frank data revealed that Dubai and Abu Dhabi
will witness higher growth in UNHWIs as compared to Manama and Riyadh.
Raju Menon, chairman and managing partner, Kreston
Menon, said the number of millionaires will undoubtedly continue growing in the
UAE in coming years.
“Whatever the business challenges or revenue
decline the companies are facing today, it is temporary. We need to look at
long-term of 5 to 10 years. Millionaires should grow here in the UAE because
money is available here so the investment avenues will be opened. The UAE’s
economy offer big opportunities,” he said.
Menon believes that most of the new millionaires
will be homegrown mainly in retail, trading, healthcare, real estate, services
and shipping sectors.
Iyad Abu Hweij, Managing Director of Allied
Investment Partners, said the UAE, home to over 9.4 million residents, remains
an attractive destination for HNWIs in the region.
With investor and business friendly policies, world
class infrastructure and a stable outlook, HNWIs are expected to continue to
grow in numbers in the country over the next coming years. Such policies and
initiatives have played an important role in bolstering the confidence of
investors and attracting Foreign Direct Investments in the UAE, which in turn
creates jobs for a highly talented workforce,” Abu Hweij said
Additionally, the UAE, viewed as a regional startup
hub and a digital leader, continues to boast more startups than any other
country in the region. Naturally, such startups attract more venture capital
and private equity investments locally than anywhere else regionally, he added.
“The UAE continues to provide solid investment
opportunities for investors locally and globally, which, along with a rapidly
developing financial services sector, has played a catalyst like role for the
growth of HNWIs in the country.”
The number of millionaires in the Middle East with
wealth below $30 million grew three per cent from 446,384 in 2017 to 459,937
last year. The number is projected to grow 18 per cent to 541,311 by 2023.
Similarly, the ultra-high net worth individuals with more than $30m assets grew
four per cent year-on-year to 8,301 last year. It’s estimated that the number
will grow 20 per cent over the next five years to 9,997.
According to Knight Frank forecast, the number of
billionaires in the region will grow from 89 last year to 99 by 2023.
Globally, the number of millionaires with less than
$30 million assets are projected to expand from 19.6 million in 2018 to 23.4
million by 2023, an increase of 19 per cent. While ultra rich will increase 22
per cent during 2018 to 2023 from 198,342 to 241,053.
The beauty and personal care industry in the MENA region, valued at $15.9 billion, is set to grow twice as faster than the rest of the world with a compound annual growth rate (CAGR) of 8.5 per cent in the next three years, a report said.
Meanwhile the global industry, which is worth $444 billion, is estimated to grow at 4.2 per cent per annum, added the latest MENA Beauty Care Report from Dubai-based Millennial Capital, an emerging venture capital firm specialising in developing partnerships with global brands in the consumer, retail and wellness sector which target to enter or operate in the GCC market..
The report cited reasons of high spending per capita, affordable prices, strong consumer confidence, high literacy rates, young population with a high social media exposure and on top of that new entrants with the aim to fill the gap in the “masstige category”.
Among the key categories that contribute most of the beauty and personal care market size are skincare, haircare, colour cosmetics, fragrances and men’s grooming. Globally, the Skincare category dominates the market and as a brand, L’Oréal Group captures the largest market share. Contrary to global trends, fragrances is the most loved category in the Mena region. The same is evident from the fact that two local brands, Arabian Oud and Al Qurashi, control over 20 per cent of the market share due to their appeal to the local masses and cultural significance.
While Saudi Arabia retains the highest market share of 33.2 per cent in the MENA region, the UAE stands higher in terms of spending per capita at $239. Despite the fact that UAE constitutes only 2 per cent of the Mena population, the high spending per capita is a result of the strong consumer confidence, high literacy rates and predominantly young population with a high social media exposure.
There is great opportunity for new players with the right value proposition to step in and gain market share weighing on the gradually shifting consumer focus to quality products that not just pamper and protect, but also pay attention to cleaner and more organic ingredients, along with personalised offerings so that wider audiences can love and appreciate them just as much, according to the report.
All of this, with an affordable price point has enabled new entrants like O Boticário, KIKO Milano and Benefit Cosmetics to lure the millennial consumer away from luxury tags, it added.
“In the age of beauty ‘retailment’ with consumer preferences shifting from being product-based to experience-based, by having alchemy and innovation in its DNA, brands such as O Boticário bring to Dubai an unprecedented emphasis on quality and retail innovation, offering customers an experience complete with interactive shopping content, products that narrate stories combined with the latest retail technologies, such as the LED screens inside the store which enable customers to get to know the stories behind the products when they lift the product from its display,” said Andreea Danila, founder & managing director at Millennial Capital Ltd.
Millennial Capital joined hands with Brazil’s O Boticário Group to introduce the largest cosmetics franchised network in UAE with the opening of two flagship stores in Dubai Mall and Mirdif City Center. The brand received an overwhelming response since the opening of the store in Dubai and its preparing for Saudi Arabia regional market expansion.
“With 33 per cent of global consumers citing brand sustainability as a key deciding factor in their product choices according to Unilever, there is an untapped potential of $1.1 billion for cleaner and sustainable brands in the market,” said Kanchan Khemani, senior investment analyst at Millennial Capital.
“O Boticário has been a pioneer in the research on alternative methods of product testing such as 3D skin instead of animal testing. The brand invests 1 per cent of revenues in forest conservation, and have reduced their electricity consumption by 70 per cent, leading to a saving of 3,000 tonnes of CO2 annually.”
Internet penetration in the Middle East has outpaced the world average of 51.7 per cent, with the largest markets boasting over 90 per cent penetration; thereby having a tremendous influence on consumers aged 18-24. Being avid smartphone users, today’s millennial is more comfortable going to the e-tailer citing lower prices, personalised offerings, and flexible payment methods as factors driving their preference.
Despite the high Middle East social media usage at 38 per cent of total population and average internet penetration of 60 per cent, only 15 per cent of retailers in the Middle East maintain an online presence, hence losing out on the 56 per cent shoppers who purchase products online through their smartphones.
It is interesting to note that health and beauty sales contribute 48 per cent of the Middle East’s online sales, the report said.
The New York Times ‘ MIDDLE EAST produced this article on Qatar going its own way and pays for it. A very detailed story on the current situation of a minuscule peninsula whose “citizens, today numbering 300,000, have become very rich, very fast. Their average income of $125,000 is the highest in the world, over twice that of the United States or Saudi Arabia. The state cocoons them with free land, cushy jobs and American universities. Gleaming supercars and limousines cruise along Doha’s palm-lined corniche. Poor Qataris are hard to find.” We reproduced some mouth-watering excerpts of the said article that in our view would have been better titled “From Pearl Divers to Porsche Drivers”.
In a few dizzying decades, gas exports have made Qatar very rich, very fast. CreditTomas Munita for The New York Times
DOHA, Qatar — For the emir of Qatar, there has been little that money can’t buy.As a teenager he dreamed of becoming the Boris Becker of the Arab world, so his parents flew the German tennis star to Qatar to give their son lessons. A lifelong sports fanatic, he later bought a French soccer team, Paris Saint-Germain, which last summer paid $263 million for a Brazilian striker — the highest transfer fee in the history of the game.
He helped bring the 2022 World Cup to Qatar at an estimated cost of $200 billion, a major coup for a country that had never qualified for the tournament.
Now at age 37, the emir, Sheikh Tamim bin Hamad al-Thani, has run into a problem that money alone cannot solve.
Since June, tiny Qatar has been the target of a punishing air and sea boycott led by its largest neighbors, Saudi Arabia and the United Arab Emirates. Overnight, airplanes and cargo ships bound for Qatar were forced to change course, diplomatic ties were severed and Qatar’s only land border, a 40-mile stretch of desert with Saudi Arabia, slammed shut.
Not even animals were spared. Around 12,000 Qatari camels, peacefully grazing on Saudi land, were expelled, causing a stampede at the border.
Qatar’s foes accuse it of financing terrorism, cozying up to Iran and harboring fugitive dissidents. They detest Al Jazeera, Qatar’s rambunctious and highly influential satellite network. And — although few say it openly — they appear intent on ousting Qatar’s young leader, Tamim, from his throne.
A boycott of Qatar led by its larger neighbors has created a cult of personality around the emir, Sheikh Tamim bin Hamad al-Thani, whose image adorns billboards and skyscrapers. Here, an image at a falcon market in Doha. Credit Tomas Munita for The New York Times
Thousands of Qatari-owned camels were expelled from Saudi Arabia in June. Credit Tomas Munita for The New York Times
Tamim denies the accusations and chalks up the animosity to simple jealousy.
“They don’t like our independence,” he said in an interview in New York in September. “They see it as a threat.”
The Saudi prince has shaped the Trump administration’s approach to the Middle East and his endeavors could have far-reaching consequences, potentially driving up energy prices, upending Israeli-Palestinian peace efforts and raising the chances of war with Iran.
The Qatar dispute is perhaps the least understood piece of the action, but it has a particularly nasty edge.
In September, at a normally soporific meeting of the Arab League in Cairo, Saudi and Qatari diplomats exchanged barbed epithets like “rabid dog” and heated accusations of treachery and even cruelty to camels. “When I speak, you shut up!” yelled Qatar’s minister of state for foreign affairs, Sultan bin Saad al-Muraikhi.
“No, you are the one who should shut up!” his Saudi counterpart shouted back.
The highly personalized rancor has the unmistakable air of a family feud. Qataris, Saudis and Emiratis stem from the same nomadic tribes, share the same religion and eat the same food. So, their dispute has shades of quarreling cousins, albeit ones armed with billions of dollars and American warplanes.
The crisis took an alarming turn last week when the Emirates accused Qatar’s warplanes of harassing two Emirati passenger airliners as they crossed the Gulf. Untrue, said Qatar, which fired back with its own accusation that Emirati warplanes had already breached its airspace twice.
Doha’s futuristic skyline. Credit Tomas Munita for The New York Times
L’observatoire du Qatar a rapporté le Jeudi, 17 Mars 2016, une étude du groupe bancaire britannique HSBC. Cette dernière, réalisée auprès de 10000 expatriées de 17 pays différents, a classé les destinations où les femmes gagnaient plus que dans leur pays d’origine. Selon le bilan de cette enquête, Qatar, pays où les femmes expatriées gagnent le plus, se retrouve a la premiere place.
Le pays où les femmes expatriées tirent les meilleurs profits de leur expatriation.
Selon cette enquête cité par l’Observatoire du Qatar, l’émirat estle pays où les femmes expatriées bénéficient de la meilleure amélioration du niveau de vie depuis leur installation. Selon l’enquête, 57% des expatriées déclarent gagner davantage d’argent au Qatar que dans leur pays d’origine, contre 56% en Suisse et 52% à Hong Kong. De même, 73% des expatriées au Qatar assurent être capables d’épargner plus que dans leur pays. L’émirat est suivi par la Thaïlande avec 67% des personnes interrogées et 63% pour la Chine. . .
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