UAE millionaires more hands-on with their money than other wealthy
High net worth individuals (HNWIs) in the UAE believe that accumulation of their wealth has been a rapid process.
Barclays report ‘Origin & Legacy’ highlights that a high tolerance for risk is a prerequisite for successful entrepreneurship. Wealthy entrepreneurs have a higher risk tolerance than those who have acquired their wealth through inheritance, earnings or bonuses.
But this appetite for risk must go hand in hand with an acceptance of volatility. Entrepreneurs and business owners are of the view that their wealth has fluctuated a great deal over time and most of the wealth creation has been a rapid process.
Interestingly, HNWIs in the UAE, highest globally, are taking an increasingly active role in managing their finances, creating a major growth opportunity for stable funds and have maintained their confidence in financial products, compared to 54 per cent in the Middle East.
In the UAE, savings and investments is the most popular use of wealth with 76 per cent of respondents citing this option as their first choice, compared to 9 per cent opting for tangible assets.
Rory Gilbert, Managing Director and Head of Wealth and Investment Management, Barclays, Middle East and North Africa, said: “HNWIs in the UAE are most optimistic in the world about how quickly wealth can be created as compared to the rest of the world, this could be a reason why the respondents from the UAE are also playing the most active role in managing their own finances.
“Once wealth has been created, UAE respondents are most likely to save or invest their wealth for growth opportunities, to be used for their future generations as opposed to short-term tangible gratification for themselves.”
Barclays’ recent report titled ‘Origins and Legacy: The Changing Order of Wealth Creation’ provides an in-depth study into how wealth is now being made, spent and shared across the world. This 17th volume of Barclays Wealth Insights investigates how the global landscape of wealth is changing, and how wealthy individuals plan for their legacy and philanthropy.
By Staff, June 24, 2013