Middle Eastern millionaires most likely luxury spenders

The typical Middle Eastern UHNWI has a higher than average liquidity than their counterparts in the US, a Wealth-X study into the profile of the Middle Eastern super rich has revealed.

It finds the typical UHNWI is a 56 year old man with an average net worth of US$151 million and liquid assets of US$46 million. The findings suggest ample opportunities for growth of luxury markets:

“With an average liquidity higher than that of the average US UHNWI, there is considerable room for greater luxury spend by Middle Eastern UHNWIs,” said Wealth-X CEO, Mykolas D. Rambus. “Understanding the UHNW population in these three countries is vital for institutions and professionals who seek to expand their businesses in the region.”

The study helps build a picture of this demographic, which is still a prosperous one for the superyacht industry with notably less of the hang ups of wealth display than in Europe or the US. The UHNWI who complained to Forbes he was too low down on its list of super rich shows that self-consciousness of assets, that can stifle growth of luxury markets, is not something that plagues the Middle Eastern market. Ownership of luxury assets by Middle Easterns seem to back this up. Collectively, they own US$26 billion worth of luxury assets, ranging from private aircraft to art and other collectibles. On average, each owns US$5.7 million worth of luxury assets.



Of further use in the the wealth intelligence firm's profile is the suggestion that the 'typical' Middle Eastern UHNWI is a myth:

“The typical Middle Eastern UHNWI is not an oil baron,” said Wealth-X Director of Business Development, Middle East and Africa, Michel Nassif. “He or she is most likely to represent the finance and banking sector or an industrial conglomerate.”

In common with the Forbes list, which found most billionaires to be self-made, the Middle Eastern mogul is not typically an inheritor of wealth. Out of the UHNWI population, 55% are self-made individuals and 31% have built upon their inherited wealth. Only 14% have inherited their wealth.



Indeed, another wealth intelligence expert positions the Middle Eastern millionaire as not a breed apart, bur rather a member of the global elite.

“Irrespective of whether we’re speaking to wealthy individuals in China, India, the Middle East or anywhere else, we have discovered that they generally share a love of travel, especially outside their own region, and that travel is generally focused on Europe or North America,” said James Lawson, director of Ledbury Research speaking to Knight Frank’s wealth report.

“The brands they most like to be associated with – from clothing to cars – tend to be European. When we think about the spread of locations where the super-rich want to invest and spend time, it feels like there should be a wider distribution, but there is still this concentration on the historic wealth hubs, especially in Europe,” he added.

Wealth-X’s profile found wealth creation largely concentrated in the United Arab Emirates, Saudi Arabia and Kuwait with a new generation of increasingly younger male and female UHNWIs emerging.

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