Latest news with #UBSGlobalWealthManagement
The Citizen
12 hours ago
- Business
- The Citizen
Global Wealth Report: More dollar millionaires in SA, but also bigger inequality
The latest Global Wealth Report shows that the world became richer but it is a mixed picture, with most of the growth in North America. The Global Wealth Report for 2025 shows an increase in global wealth, but unfortunately South Africa did not share in this growth, while the country continues to be one of the most unequal countries in the world. It did, however, see an increase in dollar millionaires. UBS, a wealth manager and universal bank in Switzerland, compiles the Global Wealth Report with insights into personal wealth. The latest edition analyses 56 markets, estimated to represent over 92% of the world's wealth. The world's wealth landscape continued to evolve In a year marked by shifting economic tides and the data in the report echoes this. According to the report, global wealth increased by 4.6% in 2024 after a 4.2% increase in 2023, but it also shows that South Africa experienced negative real growth in average wealth per adult in 2023 and 2024. South Africa finds itself among the countries in negative territory for average as well as median wealth growth, alongside countries such as India, the UAE and Turkey. ALSO READ: SA still the most unequal country in the world – Oxfam Global Wealth Report shows inequality in SA In addition, South Africa ranked third-highest in the world for wealth inequality, with a Gini Coefficient of 0.81, just behind Brazil (0.82) and Russia (0.82), and equal to the UAE. This chart shows the wealth inequality in the world: ALSO READ: Six South Africans on Forbes Real-Time Billionaire list Global Wealth Report also had good news for SA However, South Africa did see a positive increase in dollar millionaires with a growth rate just under 2% but still indicating increasing upper-tier wealth and supporting the wider Everyday Millionaire trend. As an emerging market, South Africa is listed as one of the 15 emerging economies that collectively hold up to 30% of global wealth as of 2024, a statistic that has remained relatively flat since 2017. Iqbal Khan, co-president of UBS Global Wealth Management, says the speed of growth was far from uniform, largely tilted towards North America, with the Americas overall accounting for the majority of the increase, with more than 11%. 'A stable US dollar and buoyant financial markets were key contributors to this growth. Asia-Pacific and Europe, the Middle East and Africa (EMEA) were lagging behind, with growth rates of below 3% and less than 0.5% respectively.' ALSO READ: Where do the super-rich in SA live? Trends identified in the Global Wealth Report The 16th edition of the Global Wealth Report highlights these regional and demographic themes: Adults in North America were the wealthiest on average ($593 347) in 2024, followed by Oceania ($496 696) and Western Europe ($287 688). However, measured in US dollar, in real terms over half of the 56 markets in the sample not only did not take part in the world's growth last year, but saw their average wealth per adult decline. Despite this, Switzerland continued to top the list for average wealth per adult on an individual market level, followed by the US, Hong Kong and Luxembourg. Denmark, South Korea, Sweden, Ireland, Poland and Croatia recorded the biggest increases in average wealth, all growing at double-digit rates when measured in local currencies. The number of dollar millionaires increased by 1.2% in 2024, an increase of more than 684 000 people compared to the previous year, with the US adding over 379 000 new millionaires – more than 1 000 a day. The US, mainland China and France had the highest number of dollar millionaires, with the US accounting for almost 40% of global millionaires. There has been a marked and consistent increase in wealth all across the world over the past 25 years, both overall and in each main region individually. Total wealth increased at a compound annual growth rate of 3.4% since 2000. This decade, the wealth band below $10 000 ceased to be the most populated one in the sample, overtaken by the next-higher band between $10 000 and $100 000. Over the next five years, the report's projections for average wealth per adult point to continued growth, with the expansion led by the US as well as Greater China, Latin America and Oceania. ALSO READ: Bill Gates explains why his children will inherit less than 1% of his wealth This chart shows the change in total personal wealth from 203 to 2024: Khan also points out that this year's report highlights the rise of the Everyday MILLIonaire (EMILLIs), everyday millionaires with investable assets of between $1 million to $5 million. Their numbers have more than quadrupled since 2000, reaching around 52 million globally by the end of last year. This group now accounts for approximately $107 trillion in total wealth, approaching the $119 trillion held by individuals with over $5 million in assets. Khan says the growth of this segment has largely been driven by increasing real estate prices and exchange rate effects. 'Despite regional differences, the long-term upward trend in the Everyday Millionaire group is visible around the globe.' ALSO READ: Want to build wealth? This is how Differences in wealth distribution among generations The Global Wealth Report also highlights the differences in wealth distribution among generations in the US. It shows that Millennials (born after 1981) have the highest proportion of their assets in consumer durables and real estate and invest more heavily in private businesses. Baby Boomers (born between 1946 and 1964) hold over $83 trillion in net wealth, far surpassing Generation X (born between 1965 and 1980), the Silent Generation (born before 1945) and Millennials. Khan points out that globally, wealth allocation also varies, with the US standing out with its high allocation in financial investments, Australia in real estate and Singapore in insurance and pensions. 'Over the next 20–25 years, more than $83 trillion is expected to be transferred, with $9 trillion moving horizontally between spouses and $74 trillion moving between generations. The largest volume of wealth transfers is anticipated in the US of over $29 trillion, Brazil with nearly $9 trillion and mainland China with more than $5 trillion). ALSO READ: Wealth gap widens, ANC dodges wealth tax Global wealth expected to grow Robert Karofsky, co-president of UBS Global Wealth Management, says with global wealth expected to continue to grow, the ability to manage that wealth in a dynamic and complex financial environment becomes even more important, requiring strategic foresight and expert guidance. Paul Donovan, chief economist at UBS Global Wealth Management, notes that wealth is not just an economic measure but a social and political force. 'As we navigate the fourth industrial revolution and increasing public debt, the way wealth is distributed and transferred will shape opportunity, policy and progress. 'This year's report underscores the evolutionary shifts in wealth ownership, especially the growing influence of women and the enduring importance of property and long-term asset trends.'
Gulf Insider
15 hours ago
- Business
- Gulf Insider
UAE's Dollar-Millionaires: Another 13,000 Join Resident Base In 2024, Says UBS
An additional 13,000 made it to the ranks of UAE's dollar millionaire resident base in 2024, according to the latest UBS 'Global wealth Report 2025', which is an increase of 5.8% from the year before. A good number of these newly created millionaire base in the UAE came about from re-locations, as has been the case for four years now. 'This year there has been some significant movement in the number of millionaires in many of parts of the world, both upwards and downwards,' according to the Swiss bank's findings. 'In 2024, Turkey stands out from the crowd thanks to an 8.4% increase in its number of dollar millionaires over 2023, equivalent to a boost of roughly 7,000 people in a single year. The UAE (had) a rise of 5.8% in millionaire numbers, thanks to approximately 13,000 new entrants in this category.' 'Having looked at long-term trends, we concluded that wealth is far from static.' In the UAE, that's been the case. Banking and property market sources talk about the multi-million dollar deals that have been shaping the UAE investment landscape. The property firm Knight Frank in a recent report points to the influx of Saudi, Indian, Chinese and UK high networth individuals committing sizable investments in the UAE. At some locations such as Jumeira Bay island, the deal sizes are getting bigger. There are an estimated 240,343 dollar-millionaires in the UAE with a combined $785 million. Saudi Arabia, according to UBS, has 339,029 dollar-millionaires, with a combined wealth holdings of $958.3 million. 'In an era marked by rapid economic shifts, increasing volatility and unprecedented market developments, understanding the trends and drivers of wealth creation is more crucial than ever,' said Robert Karofsky, co-President of UBS Global Wealth Management. In the UAE, around 62% of gross wealth is allocated to financial assets, and it's almost 58% in Saudi Arabia. Assets such as real estate as well as land make up about 48% of what the super-rich spend on in both the prime GCC markets. (Debt levels among these investors is close to 9% in the UAE and 'only 5.7% in Saudi Arabia, one of the lowest levels in our sample of 56 countries', according to UBS.) Niels Zilkens, Head Wealth Management Middle East at UBS Global Wealth Management, said: 'Saudi Arabia and the UAE are not only seeing rising millionaire numbers, but also meaningful gains in median wealth – especially in the UAE, where it rose over 23% since 2020. 'With a combined $122 billion in expected wealth transfers ahead, both markets are entering a pivotal phase of generational transition.'
Business Times
a day ago
- Business
- Business Times
All eyes on Asia: How investors are future-proofing their portfolios
UBS SUCCESSFULLY launched its inaugural Asian Investment Conference Singapore Wealth Edition. More than 1,000 clients, entrepreneurs, family offices and policymakers convened to explore how wealth owners in Asia Pacific (APAC) and beyond are adapting their strategies to today's dynamic investment environment. Among the distinguished speakers were President Bill Clinton, 42nd President of the United States and Founder, Clinton Foundation, Gan Kim Yong, Singapore's Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore, and Ravi Menon, Singapore's Ambassador for Climate Action and Chairman, ImpactSG. Overall topics from the conference included how investors, companies and countries can navigate the current global conditions and market environment. As markets grapple with heightened volatility, the wealthy are taking a closer look at diversification strategies and increasing their exposure to Asia. (From left) Edmund Koh, Chairman UBS Asia Pacific, Gan Kim Yong, Singapore's Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore, Iqbal Khan, Co-President UBS Global Wealth Management and President UBS Asia Pacific, and Young Jin Yee, Co-Head UBS Global Wealth Management Asia Pacific and Country Head UBS Singapore at the inaugural UBS Asian Investment Conference Singapore Wealth Edition. Photo: UBS Said Iqbal Khan, Co-President UBS Global Wealth Management and President UBS Asia Pacific: 'Singapore stands at the crossroads of global finance – making it an ideal setting for meaningful dialogue and forward-looking perspectives.' Khan reaffirmed the importance of the region to UBS's global ambitions. 'APAC is crucial to our growth strategy, as reflected in our first quarter results where our APAC business surpassed US$900 billion (S$1.15 trillion) in assets under management. The results highlight our clients' trust in our advice and global capabilities to protect their wealth in today's macroeconomic environment.' Young Jin Yee, Co-Head UBS Global Wealth Management Asia Pacific and Country Head UBS Singapore highlighted the region's enduring appeal as a key investment destination, noting that family offices in South-east Asia allocate a fifth of their investments in APAC (excluding Greater China). 'Against a volatile macroeconomic environment, UBS is well-placed to grow, protect and preserve our clients' wealth for generations,' she said. Resilience in a shifting global order The day's opening keynote featured a dialogue between Young and DPM Gan, who outlined how Singapore is positioning itself for the future. DPM Gan noted that Singapore's resilience is underpinned by its ability to adapt quickly, invest in talent and remain open to global trade and ideas. This, he said, will be critical as the country works to retain its edge as a hub for finance, innovation and enterprise. Young Jin Yee, Co-Head UBS Global Wealth Management Asia Pacific and Country Head UBS Singapore (left), in dialogue with Gan Kim Yong, Singapore's Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore. Photo: UBS Throughout the day, conference sessions explored how investors can navigate a landscape marked by inflationary pressure, changing interest rate expectations and a rapidly evolving technology sector. Speakers discussed the investment opportunities in Asia, the role of the US dollar in a multipolar world and the economic rebalancing underway in China. Amid these discussions, one recurring theme was how to stay invested while managing risk. UBS's Chief Investment Office advocates for a phased approach to investing as a way to manage market volatility. For clients who prefer a guided strategy to achieve this, discretionary mandates may be an option that allows professionals to manage portfolios based on clients' risk appetite and long-term objectives. To support this approach, the bank offers a range of solutions, one of them being UBS My Way, a digital-first mandate offering that enables clients to tailor their own portfolios with over 70 investment options, spanning active, passive, direct and thematic strategies. Business leaders, family offices and policymakers gathered at the inaugural UBS Asian Investment Conference Singapore Wealth Edition to explore wealth management strategies and navigate investment opportunities in today's dynamic Asia Pacific environment. Photo: UBS Investing with purpose The conference also explored how climate goals are influencing investment decisions. In a panel on the climate crisis, Menon and Desmond Kuek, Executive Director and CEO of Temasek Trust, discussed how investors can drive climate action amid economic and geopolitical uncertainty. The day concluded with a high-profile dialogue featuring President Bill Clinton, 42nd President of the United States and Founder, Clinton Foundation with Iqbal Khan, Co-President UBS Global Wealth Management and President UBS Asia Pacific. At the UBS Asian Investment Conference Singapore Wealth Edition, some of the internationally renowned speakers include: Howard Marks, Co-Chairman, Oaktree Capital Management John Reade, Senior Market Strategist, World Gold Council Tan Sri Andrew Sheng, Distinguished Fellow, Asia Global Institute, University of Hong Kong Tao Dong, External Senior Expert Thuy Vu Dropsey, Chief Corporate Development and Strategic Finance Officer, Vingroup Asia's wealth at an inflection point The recent release of the UBS Global Family Office Report 2025 provided deeper insight into how the region's most sophisticated investors are adjusting their wealth management strategies. For instance, family offices in South-east Asia are increasing allocations to private equity and private debt, while maintaining significant exposure to Asia Pacific (APAC) markets. Preferred asset classes include developed market equities and bonds, with nearly half of APAC family offices planning to increase exposure to both developed and emerging market equities. The report also found that succession planning is gaining traction. More than half of APAC family offices will involve the next generation in board roles, with many also preparing them for management responsibilities. Expand Learn more about UBS Manage. This material is for distribution only under such circumstances as may be permitted by applicable law. It has not been prepared with regards to the specific investment objectives, financial situation or particular needs of any specific person. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments or to participate in any particular trading or investment strategy. The contents of this material should not be construed as legal, tax, accounting, regulatory, or other specialist or technical advice or services or investment advice or a personal recommendation. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein except with respect to information concerning UBS Group AG, its subsidiaries and affiliates ('UBS'), nor is it intended to be a complete statement or summary of the matters referred to in this material. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or business divisions of UBS as a result of using different assumptions and criteria. UBS is under no obligation to update or keep current the information contained herein, and past performance is not necessarily indicative of future results. Not all products and services are available to citizens or residents of all countries. Neither UBS nor any of its directors, officers, employees or agents accept any liability for any loss or damage arising out of the use of all or any part of this material or reliance upon any information contained herein. Additional information may be made available upon request. Clients wishing to effect transactions should contact their local sales representative. UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for the actions of third parties in this respect. © UBS 2025. The key symbol and UBS are among the registered and unregistered trademarks of UBS. Other marks may be trademarks of their respective owners. All rights reserved.
Al Etihad
a day ago
- Business
- Al Etihad
Growth in UAE household wealth likely to continue despite regional conflict: UBS Chief Economist
19 June 2025 00:25 KHALED AL KHAWALDEH (ABU DHABI) The outlook for household wealth in the UAE remains positive despite ongoing regional tensions, according to Paul Donovan, Chief Economist at UBS Global Wealth Management. Speaking at the release of the UBS Global Wealth Report 2025, Donovan underscored that the impact of the regional conflict on the UAE's wealth trajectory is expected to be limited. "The conflict is obviously a human tragedy. We are seeing a great deal of suffering as it unfolds," Donovan told Aletihad on Wednesday. "However, it is primarily a localised conflict, and at a global level, the economic and financial market implications to date have been very muted. I think that is likely to continue."Donovan emphasised that while geopolitical tensions can cause short-term volatility in asset prices, they are unlikely to derail the UAE's medium-term wealth creation, which, according to UBS data, has been substantial in the last decade. "I would not be expecting a great deal of disruption to the local economies in the UAE if we see an extended period of conflict," he noted. "There may be some implications for, say, the tourism industry, but it's unlikely to lead to a dramatic shift in terms of the medium-term direction of the economy and the wealth creation that is going on there."One factor Donovan pointed out is the limited movement in oil prices despite the conflict. He said the sector had proven to be resilient and believed the UAE would continue to benefit economically under the current trajectory of the conflict. "The movement in the oil price has been a positive movement, but a fairly limited movement," he said. "We're not seeing significant disruption at the moment. The expectation is that there will not be any threats over the Straits of Hormuz. In that situation, again, I don't see this as having a significant medium-term impact," he UBS Global Wealth Report 2025, released on Wednesday, highlights strong underlying fundamentals in the UAE's wealth landscape. According to the report, the UAE has seen significant growth in median household wealth since 2020, with median wealth per adult rising by more than 23% after adjusting for inflation. However, average wealth per adult grew more modestly at just 2.35% over the same period, suggesting a more polarised distribution of wealth gains compared to neighbouring Saudi Arabia and other economies. The report shows that about 62% of the UAE's gross wealth is held in financial assets, while non-financial assets such as property account for roughly 48%. Debt levels remain modest, at around 9% of gross number of dollar millionaires in the UAE also continued to rise in 2024, reaching over 240,000 individuals. The country added 13,000 in the last year, the second largest rate of growth, just behind Türkiye. Globally, the report found that household wealth rose again in 2024, following a buoyant 2023, although growth was uneven across regions. North America and China remain dominant, jointly accounting for over half of the total personal wealth in the UBS study's 56-country sample. The report also noted the rise of the so-called EMILLIs, everyday millionaires with between $1 million and $5 million in assets, a group that has quadrupled globally since 2000, largely on the back of inflated real estate values. Looking ahead, UBS expects the global millionaire population to increase by nearly 9% by 2029, adding over five million new millionaires. The UAE is poised to contribute to this growth, fuelled by its economic diversification efforts and prudent wealth management practices.
Time of India
a day ago
- Business
- Time of India
Every 30th adult now a millionare: UAE adds 13,000 dollar millionaires in 2024
In 2024, the UAE gained 13,000 millionaires, bringing the total to 240,000 with $785 billion in wealth/ Image: X The United Arab Emirates continued its meteoric rise on the global wealth map in 2024, adding approximately 13,000 new millionaires, according to the UBS Global Wealth Report 2025 , released Wednesday. This fresh wave of high-net-worth individuals (HNWIs) pushed the UAE's millionaire count to a striking 240,343, marking a 5.8% year-on-year increase. This growth makes the UAE the second-fastest-growing millionaire market, trailing only Türkiye, which experienced an 8.4% rise. A good number of these newly created millionaire base in the UAE came about from re-locations, as has been the case for four years now. Aaccording to the Swiss bank: 'In 2024, Turkey stands out from the crowd thanks to an 8.4% increase in its number of dollar millionaires over 2023, equivalent to a boost of roughly 7,000 people in a single year. The UAE (had) a rise of 5.8% in millionaire numbers, thanks to approximately 13,000 new entrants in this category.' To put it in human terms: According to Worldometers data, the UAE's population grew by 385,048 last year. While the total population is estimated at around 11 million, adults in their prime working years (25-54) number a substantial 7.28 million. With such a high concentration of wealth, effectively about one in every 30 adults or economically active individuals in the UAE is a millionaire. Where the Wealth Lives: UAE's $785 Billion in Private Hands The country's HNWIs now collectively control about $785 billion (Dh2.88 trillion) in wealth. Meanwhile, the average wealth per adult in the UAE currently stands at $147,663. According to the report: 62% of this wealth is held in financial assets, from equities and bonds to private investments. The remaining 48% resides in non-financial assets, primarily real estate and land, long considered pillars of wealth preservation in the Gulf. This concentration of wealth is clearly reflected in the UAE's property and investment markets. According to Knight Frank, a notable influx of high-net-worth individuals from Saudi Arabia, India, China, and the UK is driving larger, multi-million dollar deals, particularly in premium locations such as Jumeira Bay Island. Paul Donovan, Chief Economist at UBS Global Wealth Management, in a statement highlighted the broader implications of this capital accumulation: 'Wealth is not just an economic measure – it's a social and political force. As we navigate the fourth industrial revolution and rising public debt, the way wealth is distributed and transferred will shape opportunity, policy, and progress.' Generational Shifts: $19 Billion in Wealth Transfers Expected One particularly notable trend in the UAE is the coming wave of wealth transfers. UBS estimates that the country will see $19 billion (Dh70 billion) in intra- and inter-generational transfers. That figure represents 1.4% of the UAE's total private wealth. This includes wealth moving between: Spouses, such as from a widow or widower to their partner. Generations, especially from older family members to children or grandchildren. Globally, the report expects over $83 trillion to change hands in the next two to three decades, most significantly in the: United States: over $29 trillion Brazil: nearly $9 trillion Mainland China: more than $5 trillion Wealth Rankings: Where the UAE Stands Globally and Regionally Regionally, the UAE ranks second in the Middle East for millionaire population: Saudi Arabia: ~340,000 millionaires UAE: 240,343 Israel: 186,000 Globally, Switzerland maintained its position as the wealthiest nation by average adult wealth: Switzerland: $687,166 United States: $620,654 Hong Kong: $601,195 Luxembourg: $566,735 Australia: $516,640 By contrast, while the UAE's average per adult ($147,663) trails these top-tier economies, its pace of wealth creation—and wealth attraction, signals an upward trajectory. Inflow of Wealth: Why Millionaires Are Moving to the UAE Not all of the 13,000 new millionaires in the UAE were homegrown. According to Knight Frank , citing Henley & Partners data, the UAE attracted 7,200 millionaires from abroad in 2024, a 53% increase from the previous year. This surge in financial migration brings the total number of resident HNWIs to 130,500, as reported earlier. Industry experts suggest that favorable tax policies, political stability, and high-end infrastructure continue to make the UAE a magnet for mobile global wealth. A Global Picture: Wealth Growth Tilted to the Americas While the UAE experienced notable domestic gains, the global wealth landscape also saw overall expansion: Global private wealth rose by 4.6% in 2024, up from 4.2% in 2023. Most of the increase came from North America, where stable currencies and strong financial markets drove momentum. The Americas led with more than 11% of global wealth growth. In contrast, the Asia-Pacific and EMEA (Europe, Middle East, Africa) regions saw sluggish growth: below 3% and 0.5%, respectively.
