Household wealth in the MENA region declined by 2.2% since mid-2014 to total $4.4 trillion; according to a new report from Credit Suisse Research Institute.
Its annual Global Wealth Report for 2015 also shows, that average wealth per adult in the MENA also declined by 6.9% since mid 2014, from $16,900 to $15,800 as a result of currency headwinds.
Wealth per adult has is down some 22% from its peak in 2007, and down 5% when calculated in constant currency terms.
The only two economies in the region, which recorded a growth in average wealth per adult, were Qatar and Saudi Arabia. Qatar now boasts of the highest average wealth per adult – $157,000 (up 0.8% from the same period last year), placing it at the 21st position globally. Saudi Arabia also recorded a 0.9% growth in average wealth per adult to reach $39,500.
Kuwait (-7.6%), Bahrain (0.3%), Egypt (5.3%) and the UAE (0.3%) all reported declines in wealth per adult this year.
The report puts the number of UNHWI individuals in the MENA region at 2,300, and the number of millionaires at 330,000 in 2015. Despite the decrease in household wealth, the number of millionaires has gone up by 240% since 2000 and is projected to rise by another 52% to 500,000 adults by 2020 the report estimates.
Saudi Arabia and UAE in particular are expected to see an increase in the number of dollar millionaires by 72% and 62% respectively, in the in the next five years.
The overall findings in the Middle East tracks the global trend, as wealth across the world fell by $13 trillion this year due to an appreciation of the dollar. But, “if measured at constant exchange rates, global wealth would have risen by $13 trillion since last year,” the report’s authors said.
Overall, wealth inequity has continued to rise since the 2008 crisis, with the top 1 percentile of wealth holders now owning just over half of all household wealth. And despite the fall in household wealth, the number of dollar millionaires worldwide is only slated to increase by 46% in the next five years, reaching 49.3 million by mid-2020.