The waiting list for those Porsche Panameras and Bentley Continentals may be getting shorter.
The number of high net worth individuals in the Emirates declined last year by 18.8 per cent to 54,500 as the economic downturn took its toll on the bank accounts of wealthy residents, according to the latest World Wealth Report from Merrill Lynch and Capgemini.
High net worth individuals are defined as those with more than US$1 million (Dh3.6m) of investable assets apart from their primary residence, consumable goods, collectibles and durable products such as furniture and clothes.
The wider Middle East region saw the number of high net worth individuals increase by 7.1 per cent, from 2008, and their total wealth increase by 5.1 per cent, which was one of the more modest gains in the world.
The report cited the "Dubai crisis" as a major source of the UAE losses in addition to a contraction in the economy, declining house prices and lower oil production. The more shielded economy of Saudi Arabia led the number of super wealthy to increase by 14.3 per cent to 104,700 people. Meanwhile, the world's population of high net worth individuals rose last year to 10 million, a gain of 17.1 per cent from 2008. Their total wealth rose 18.9 per cent to $39 trillion. Ultra high net worth individuals, who have assets of more than $30m, were responsible for 35.5 per cent of this wealth but accounted for just 0.9 per cent of the population of high net worth individuals.
The majority of personal wealth is still concentrated in the US, Japan and Germany, which together account for 53.5 per cent of high net worth individuals in the world.
But, for the first time, those individuals in the Asia-Pacific saw their total wealth surpass those in Europe. The report said Asia-Pacific would be the "powerhouse" of wealth accumulation in the coming years, with China and India acting as engines for the growth.
Among those who managed to keep their head above the $1m mark in the Middle East, an increasing passion were investments in jewellery, gems and watches.
High net worth individuals in the region increased their asset allocations for these luxury handcrafted items by 29 per cent, the report said.
bhope@thenational.ae
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
