### Summary
The wealth per adult in the UAE at the end of 2022 was $152,556, according to a global report. The UAE's total household wealth stood at $1.2 trillion, and the ratio of household debt to gross assets was 7.8%.
### Facts
- 💰 Total household wealth in the UAE at the end of 2022 was $1.2 trillion.
- 💸 Wealth per adult in the UAE at the end of 2022 was $152,556.
- 📉 The ratio of household debt to gross assets in the UAE in 2022 was 7.8%.
- 📈 Wealth per adult in the UAE grew by 18.7% in 2021 using current exchange rates and by 20.6% using smoothed exchange rates.
- 🔄 However, in 2022, the growth of wealth per adult in the UAE differed depending on exchange rates. It rose by 11.7% in current exchange rates and by only 4.1% using smoothed rates.
- 💼 The UAE hosts a high number of wealthy expatriate entrepreneurs, with an estimated 4,500 high net worth individuals relocating to the country in 2023.
- 🌍 Globally, total net private wealth fell by $11.3 trillion to $454.4 trillion at the end of 2022.
- 📊 Wealth declines in 2022 were mostly due to financial assets, while non-financial assets like real estate remained resilient.
- 🌍 Wealth losses were concentrated in wealthier regions like North America and Europe, with the United States, Japan, China, Canada, and Australia experiencing the largest losses.
- 📉 Wealth inequality also fell in 2022, with the wealth share of the global top 1% decreasing to 44.5%.
- 📈 Global median wealth increased by 3% in 2022, contrasting with the 3.6% fall in wealth per adult.
- 🔮 The report projects that global wealth will rise by 38% over the next five years, reaching $629 trillion by 2027. Wealth per adult is expected to reach $110,270, and the number of millionaires is forecasted to reach 86 million.
- 🗣️ Regarding the report, Iqbal Khan, president of global wealth management at UBS, emphasized its valuable insights, while Anthony Shorrocks, economist and report author, discussed the decline in wealth driven by high inflation and currency appreciation.
- 🔒 Nannette Hechler-Fayd’herbe, chief investment officer at Credit Suisse, highlighted the resilience of wealth during the pandemic but noted the reversal in 2022 due to inflation, rising interest rates, and currency depreciation. She expects global wealth to rise by 38% in the next five years.
The number of people living in extreme poverty in developing Asia has increased by 67.8 million due to the COVID-19 pandemic and rising living costs, with more than 155 million people living on less than $2.15 a day last year, according to the Asian Development Bank.
The number of millionaires worldwide has increased significantly over the last decade, with total millionaire wealth reaching $208.3 trillion in 2022, driven by factors such as tech revolutions and market booms; North America is home to the largest percentage of millionaires (42%), followed by Europe (27%); however, wealth inequality remains a significant issue, and the number of millionaires is projected to grow to 86 million by 2027.
The US experienced a significant decline in wealth last year, but millennials saw their net worth rise due to their higher investment in real estate, debunking the myth that they are financially struggling.
Billionaires' wealth has grown by 109% in the past decade, raising concerns about escalating wealth inequality and leading economists and millionaires to call on governments to impose taxes on the superrich.
Hong Kong's ultra-wealthy population decreased by 23% in 2022, while New York and Singapore saw growth, according to a report by Altrata, with China's Covid-19 restrictions, economic slowdown, geopolitical issues, and equities slump cited as reasons for the decline. However, Altrata predicts that the global super-rich population will rebound by 2027, reaching 528,100 individuals with a net worth of $60.3 trillion.
The average net worth needed to be considered wealthy in the United States is $2.2 million, according to the 2023 Modern Wealth Survey by Charles Schwab, although respondents in San Francisco believe it takes $4.7 million to be wealthy, the highest across all cities surveyed. However, when asked if they feel wealthy themselves, respondents diverged from the monetary benchmark, with 48% feeling wealthy with an average net worth of $560,000, indicating that wealth is not solely determined by a financial figure.
India was the only country among the top 10 ultra high net worth nations to see an increase in its ultra wealthy population in 2022, despite a global decline, with a combined net worth of over $1.4 trillion.
The global population of ultra high net worth individuals (UHNW) experienced a setback in 2022, with a 5.4% decrease in their numbers and a 4.3% drop in their combined net worth, primarily due to factors such as Russia's invasion of Ukraine and high inflation; however, the losses are not expected to be permanent as the UHNW population is projected to continue growing.
The surging stock market and rebounding property values have driven U.S. household wealth to a record high of over $154 trillion in the second quarter, fully recouping losses from last year's bear market, according to Federal Reserve data.
Asia is expected to continue to have more ultra wealthy people than Europe, with analysts predicting that Asia's global share of ultra high net worth individuals could hit 29 percent by 2027.
Hong Kong's wealth gap has widened to its worst in over a decade, with the poorest residents struggling to recover from the impact of the Covid-19 pandemic, according to a report by Oxfam. The wealthiest 10% of households earned 57.7 times more than the bottom 10%, up from 34.3 times in 2019, and 20% of the population was living below the poverty line. The report calls for an increase in the minimum wage and the creation of more flexible low-skilled jobs within public bodies to address the gap.
Global stock market value falls below $100 trillion for the first time in four months due to concerns about the Chinese economy and rising US interest rates, leading to a drop in luxury brand and tech stocks.
Global wealth experienced a significant decline in 2022, with a 2.7% drop in households' financial assets worldwide, primarily driven by falling asset prices; however, there is optimism for a rebound in 2023 and subsequent years, with projected growth of 6%.
The wealthiest people in the U.S. have seen a significant increase in their wealth, with the richest Americans now holding a total of $4.5 trillion, tied with the record set in 2021, due to rebounding stock markets and the flourishing AI-driven tech industry.
Former President Donald Trump has dropped off the Forbes list of the 400 wealthiest Americans due to a decrease in his net worth, primarily caused by the lower value of his social media platform, Truth Social, and losses in his real-estate portfolio.
The net worth required to become the richest person in America has significantly increased over the past four decades, with Elon Musk currently holding the title with a net worth of $251 billion, making him 125 times richer than the first richest person in 1982.
The richest Americans are seeing their share of wealth and income increase despite expectations that the pandemic might narrow the wealth gap, with the top 1% holding roughly 26.5% of household net worth and the share of income going to the top 5% growing. On the other hand, the bottom 40% has seen a smaller slice of the pie even as their net worth has risen.
