Last year, the comedy pop song Saudis in Audis by Remy Munasifi was a YouTube sensation. But the reality is Bentleys and Lamborghinis are more likely to be spotted in the driveways of households in the kingdom.
A new study reveals that for its population, Saudi Arabia has the highest proportion of "hyper-rich" households in the world - those worth more than US$100 million (Dh36.7m) - with the UAE, Qatar and Kuwait also figuring in the top 10.
Dubai's financial services industry is reaping rewards from wealthy investors from Saudi Arabia, which now accounts for the greatest number of hyper-rich households outside the US and Germany, according to the study.
The survey, from the Boston Consulting Group, also showed Qatar, Kuwait and the UAE were among the top 10 countries worldwide on the number of millionaires per capita.
"Dubai sustains its position as most prominent offshore centre in the Arab world, with Saudi Arabia, Turkey, Iran, Kuwait and Russia emerging as the most important origins of offshore wealth," the survey said.
In the Middle East and Africa, "assets under management rose by 8.6 per cent to hit $4.5 trillion in 2010 and [are expected] to reach $6.7tn by 2015", it said.
One in every 20 UAE households has more than $1m in assets, compared with one in every 11 households in Qatar.
But these Gulf states are dwarfed in wealth by Saudi Arabia.
The kingdom emerged as the leading country in the world for ultra-high-net-worth households, defined as those with a net worth of more than $100m, with 18 such families for every 100,000. Switzerland came second, with 10 such households for every 100,000.
The US has the largest total number, 2,692, followed by Germany and Saudi Arabia.
"Given the demographics and overall wealth of these petroleum-rich countries we would expect a higher proportion of [ultra-high-net-worth] households than in other parts of the world," said Dr Sven-Olaf Vathje, a partner and the managing director at BCG Middle East.
"Growth in assets under management also reflects the strong fundamentals of the region, driven by continuing strong petroleum prices," he said.
Surging oil prices have trickled through to the economies of GCC countries recently, boosting wealth creation and job growth. Brent crude futures have increased 54.67 per cent to $114.93 in the past 12 months, although they have retreated from highs of $126.74 in April.
Wealth grew fastest in the Asia-Pacific region, at 17.1 per cent, although Japan's wealth has fallen since last year.
The total assets of the Middle East and Africa held offshore stands at $1.4tn, with the majority held in the UK, the Channel Islands, Dublin and Switzerland.
"The risk appetite of regional investors remains low, especially when compared to levels seen before the downturn," Dr Vathje said. "The asset allocation of GCC high net-worth individuals remains overweight in cash and capital-protected products."
The UAE has attempted to capitalise on the growing need for asset management, with Abu Dhabi's Vision 2030 calling for the development of the emirate's financial services sector.
But lenders in the Emirates have rushed to establish private banks and convince Middle East investors their asset management needs are better served locally.
[ ghunter@thenational.ae ]
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Dungeons & Dragons began as an interactive game which would be set up on a table in 1974. One player takes on the role of dungeon master, who directs the game, while the other players each portray a character, determining its species, occupation and moral and ethical outlook. They can choose the character’s abilities, such as strength, constitution, dexterity, intelligence, wisdom and charisma. In layman’s terms, the winner is the one who amasses the highest score.
The specs: 2018 GMC Terrain
Price, base / as tested: Dh94,600 / Dh159,700
Engine: 2.0-litre turbocharged four-cylinder
Power: 252hp @ 5,500rpm
Torque: 353Nm @ 2,500rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.4L / 100km
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Name: Floward
Based: Riyadh, Saudi Arabia
Founders: Abdulaziz Al Loughani and Mohamed Al Arifi
Sector: E-commerce
Total funding: About $200 million
Investors: Aljazira Capital, Rainwater Partners, STV and Impact46
Number of employees: 1,200
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
Engine: 5.6-litre V8
Transmission: seven-speed automatic
Power: 400hp
Torque: 560Nm
Price: Dh234,000 - Dh329,000
On sale: now
COMPANY PROFILE
Name: PlanRadar
Started: 2013
Co-founders: Ibrahim Imam, Sander van de Rijdt, Constantin Köck, Clemens Hammerl, Domagoj Dolinsek
Based: Vienna, Austria
Sector: Construction and real estate
Current number of staff: 400+
Investment stage: Series B
Investors: Headline, Berliner Volksbank Ventures, aws Gründerfonds, Cavalry Ventures, Proptech1, Russmedia, GR Capital
Company Profile
Name: Raha
Started: 2022
Based: Kuwait/Saudi
Industry: Tech Logistics
Funding: $14 million
Investors: Soor Capital, eWTP Arabia Capital, Aujan Enterprises, Nox Management, Cedar Mundi Ventures
Number of employees: 166
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Developer: Ubisoft Bordeaux
Publisher: Ubisoft
Consoles: PlayStation 4&5, PC and Xbox Series S&X
Rating: 3.5/5
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Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
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The specs
Common to all models unless otherwise stated
Engine: 4-cylinder 2-litre T-GDi
0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)
Power: 276hp
Torque: 392Nm
Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD
Price: TBC
ULTRA PROCESSED FOODS
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
12 restaurants opening at the hotel this month
Ariana’s Persian Kitchen
Dinner by Heston Blumenthal
Estiatorio Milos
House of Desserts
Jaleo by Jose Andres
La Mar
Ling Ling
Little Venice Cake Company
Malibu 90265
Nobu by the Beach
Resonance by Heston Blumenthal
The Royal Tearoom
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars