More families in Qatar are becoming rich or super-rich due to well-placed investments, and the overall value of their private wealth is continuing to grow, according to a new international report.
The total number of households in the country with private wealth of $1 million or more rose by 3.7 percent during 2014 and is projected to further increase by 4.1 percent by 2019, the Boston Consulting Group (BCG) said in its latest annual report, which charts the financial health of people in 62 countries.
Overall, Qatar was found to be have the world’s third-highest density of millionaires, with 116 per 1,000 households in the country valued at $1 million or more in BCG’s report Global Wealth 2015: Winning the growth game.
Switzerland has the highest percentage of millionaires globally, at 135 per 1,000 households, while Bahrain came in second at 123 per 1,000 households.
In 2013, Qatar took the top spot internationally in terms of millionaire density, with 175 of every 1,000 households estimated to be millionaires.
The drop in rankings can at least be partly explained by Qatar’s massive and ongoing population explosion, with hundreds of thousands of expats moving here each year. Between June 2014 and June 2015, the population reached 2.37 million – a growth of more than 200,000 people (or 9 percent) on the previous year.
As most of the influx is comprised of lower-income workers, the percentage of millionaire households may appear smaller relative to the larger population.
Rich getting richer
However, according to detailed Qatar figures within BCG’s report, the number of millionaires and multi-millionaires households here is growing, while those who are already millionaires are getting richer.
Overall, private wealth in Qatar grew by 6.5 percent last year, mostly driven by more wealth being invested in equities (shares in private companies) – up 10.9 percent between 2013 and 2014.
And the report predicts that private wealth in Qatar will continue to increase, with a rise of 9.6 percent estimated by 2019.
While the total number of households becoming millionaires increased in Qatar last year, it was the super-wealthy who did particularly well.
The private wealth held by Ultra-High Net Worth households (those with $100 million or more) increased by 10 percent due to “dynamic equity markets and a growing economy”, Markus Massi, a partner and managing director at BCG Middle East said.
During 2014, 8.6 per 100,000 households in Qatar were classified as “ultra-high net worth,” and the wealth held by those is set to soar by 22.5 percent in the coming four years, Massi added.
This put Qatar fifth globally in terms of density of the ultra-rich (per 100,000 household):
- Hong Kong – 15.3/100,000
- Singapore – 14.3/100,000
- Austria – 12/100,000
- Switzerland – 9/100,000
- Qatar – 8.6/100,000
Meanwhile, the upper high net worth sector (households with wealth of $20 million-$100 million) grew 9.3 percent last year, and is predicted to continue to increase in the coming years.
This is due to more families earning enough to qualify to enter this wealth classification, while those already in it are expected to see their fortune increase as the average wealth per household is forecast to rise.
The lower high net worth bracket ($1 million-$20 million) also increased by 7.2 percent last year, and is forecast to grow by 11.6 percent over the coming five years.
Overall, private wealth in the Middle East and America rose by more than 9 percent last year to nearly $6 trillion, and is expected to increase to $9 trillion in 2019.
“Solid savings rates and continued GDP rises in oil-rich countries contributed to newly created wealth, while existing asset performance was solid despite the region’s volatile developments,” Massi added.
Globally, private wealth reached $164 trillion – up 12 percent last year. North America was the world’s richest region, with $51 trillion of private wealth. However Asia-Pacific (excluding Japan) is expected to overtake North America in 2016, when the region’s wealth is forecast to rise to $56 trillion.
Bahrain has more millionaires than Qatar? There must be something wrong with the report.
The figures are per number of households not absolutes. So depending on overall population, so if Bahrain is less populated than Qatar the rate per 1,000 households is higher even if Qatar has more millionaires overall.
Would be interesting to know the figures for Qatari nationals only. Sure to be highest in world?
Numbers aside, Qataris born into the middle class will probably be lower middle class because of the cost of living here. Newly wed-families can’t afford to live in this inflated economy.
Yes, i suppose that also i the Qatari society what is consider ‘average’ makes it harder on them.
Yep. And a lifetime of potentially crushing personal debt.
Are they voting in the right people to help them?
Are they pushing for the right people to be able to represent them?
Why aren’t they making a fuss about it?
Oh, right, they can’t. :/
Cause voting is working great in the US
Why the US? Who says that the US is the best at democracy?
Hint – probably only Americans, and even then not all of them.
I certainly don’t hold the current American system up as the model of democracy, it’s almost as bad as here – the country is run by a rich political clique and corporate lobbyists.
How do the laborers figure into the calculation? Obviously they bring the average down, but are they counted as 0 millionaires out of 18 laborers or is it counted as 0 millionaires out of 1 household, counting the 18 of them stuffed into one room as a single household?
Well some of this labourers maybe be actually very rich on paper as they work in Qatar
Acquired wealth? From sweat and blood of hard work?
increase in rent.
I imagine the survey was conducted amongst Qataris and permanent residents, leaving out the majority of the expat community, the bulk, the labour force. When the majority earn about 1000 qar a month that could really bring the average down so it’s kind of lucky for Qatar that the great unwashed are not considered part of the Population and, to be frank, are hardly considered people most of the time.
The increase of millionaires in Qatar must be due to Qataris incredible work ethic, great innovation and advancement in technology & science & manufacturing and the overall contribution they have & are making to the world and the benefits can be seen in how they treat the people under them with respect & dignity and share the wealth, ensuring that those who provide services and labour are not left stagnating with menial pay and a subservient existence.
So if there are 280,000 Qatari’s at say 4 per household then there are approximately 6 ultra rich peole in Qatar ….. someone is not letting on about how much cash they have
I was just here to read MIMH’s comments but I guess he wasn’t here this time. ..his comments (I think he’s a he) are usually entertaining lol.