Revealed: UAE billionaires and how they made their billions

A new billionaire census report has revealed that the number of billionaires in the UAE has gone up to 37 this year compared with 35 last year.

According to the 2013 Wealth-X and UBS Billionaire Census, the UAE billionaires hold a total of $45 billion (Dh165 billion) in combined wealth, with an average net worth of $1.2 billion (Dh4.46 billion) per ultra-wealthy individuals in the country.

According to the report, which Wealth-X says is the first in-depth and definitive analysis of this ultra-affluent tier by region, country and gender, the UAE has 4.5 billionaires per million people, and is ranked No. 7 in the world in terms of number of billionaires per capita.

The country trails its GCC peers Kuwait and Qatar, both of which have marginally better 4.7 billionaires per million people. However, the number of billionaires in both Kuwait (17) and Qatar (9) is less than the UAE’s 37 billionaires.

On the other hand, with 2.2 billionaires per million people, Saudi Arabia is ranked at No. 9 in the world in terms of billionaire density although the number of ultra-wealthy individuals it hosts is 64, who together have a combined wealth of $204 billion between them.

The Wealth-X and UBS Billionaire Census reveals that, as of 2013, there are 2,170 billionaires globally, with a combined net worth of $6.5 trillion. The billionaire population has increased by 60 per cent from its size during the global financial crisis in 2009. Their total combined wealth rose to $6.5 trillion in 2013 from $3.1 trillion in 2009.

The UAE has the second largest billionaire population in the Middle East, after Saudi Arabia. The country’s billionaires belong to finance, banking, investment and real estate, the report points out, highlighting that it “not oil & gas” that is responsible for the UAE billionaires’ wealth.

“Billionaire wealth in the United Arab Emirates has been supported by strong domestic equities – the Abu Dhabi Index is up over 40 percent since July 2012,” the report states.

In the UAE, almost half (48 per cent) of billionaires are self-made, while only 11 per cent have received their billions in inheritance. The remaining 41 per cent have become wealthy through a combination of inheritance and enterprise, data in the Wealth-X report reveals.

The average age of a UAE billionaire is 57 years, and an overwhelming 97 per cent of the wealthy are men. Among the most significant industries responsible for spawning the UAE billionaires’ wealth are finance, banking an investment (19 per cent), real estate (11 per cent), and manufacturing (5 per cent).

The Middle East as a region boasts of 157 billionaires holding $354 billion in combined wealth. “Middle Eastern billionaires are big spenders; the average value of real estate, yachts, and private planes that they own is the highest in the world,” the Wealth-X report states.

“Lack of education does not appear to be a barrier for Middle Eastern billionaires; only 49 per cent have a degree, which is the lowest figure for all regions,” the report adds.

Last year’s report put the number of billionaires in the region at 152, and their combined wealth at $315 billion. This year’s report highlights that billionaire’s wealth in the Middle East grew over the previous year as a result of strong equity and commodity markets.

The in-depth report also reveals that, of the 157 Middle East billionaires, almost half (74 billionaires) are self-made, while only 24 (or 15 per cent) received their billions through inheritance. Tellingly, 59 Middle East billionaires (37.5 per cent) became rich with a combination of inheritance and self-made wealth.

Moreover, 94 per cent of Middle East’s billionaires are men, and the billionaires’ average age is 61 years. The self-made billionaires have an average age of 64 years while those that inherited their billions are much younger with an average age of 53 years. Those that became billionaires as a result of both inheritance as well as self-enterprise is 61 years.

Overall, the world’s population of billionaires continues to grow. Between July 2012 and June 2013, the number of billionaires has increased by 0.5 per cent and their total wealth has risen by 5.3 per cent.

The combined net worth of billionaires is $6.5 trillion, more than the GDP of every country except the top two (United States and China).

The Middle East and Asia ate two regions tectonic shifts in wealth: the total billionaire wealth in Asia increased by 12.9 per cent, and that in the Middle East by 12.4 per cent. Asia also contributed the largest percentage growth in the number of additional billionaires (3.7 per cent) to the list this year, followed by the Middle East (3.3 per cent).

Europe, on the other hand, emerged as the only region to suffer a decline in the population of billionaires, reporting a loss of billionaire status for 29 individuals since last year.

Since the financial market bottomed out in March 2009 following the global financial crisis, the total wealth of billionaires has more than doubled from $3.1 trillion to $6.5 trillion. The billionaire population in 2013 is also 60 per cent higher than in 2009, at 2,170.

Globally, with 515 billionaires, the US leads the world in terms of number of ultra-wealthy, followed by China at a distant No. 2 (157 billionaires), Germany (148), the UK (135) and Russia (108). With 103 billionaires, India ranks at No. 6, and also rounds-up the countries with over 100 billionaires.

The only GCC country in the top 10 is Saudi Arabia, which is ranked at No. 9 globally.

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