Tough Times Hit Millionaires in Saudi Arabia

Turmoil has taken over the Middle East, an international stock market that has had an unimpressive debut and falling oil prices have hit the wealth in Saudi Arabia for years to come, says a new report.

Over the upcoming five years, more people in Saudi will become U.S. dollar millionaires. However, the rate of that increase will slow to just 12.4%, which is less than 50% of the steep rate of 25% seen from 2010 to 2015.

What that means is that by 2002, close to 55,250 Saudis will be individuals with very high net worth, with more than $1 million in assets, excluding their primary residences’

Currently that figure is standing at 49,150, when the country, one of the most populous in the Gulf, has a population of 29 million.

One-fifth of the millionaires in Saudi Arabia make money from oil, said Internet research firm WealthInsight, but the drop of 50% in crude oil prices over the past 12 months is just one factor behind the slowdown that lies ahead.

There have been more worries amongst the wealthy in the Kingdom, said the report. The collapse of prices of oil is just half the entire picture. Thus far, in 2015 the stock market disappointed in its debut on the worldwide stage, two wars have started along the borders of the Kingdom and there is the prospect of a new rivalry economically with Iran.

Saudi Arabia’s stock exchange Tadawul officially opened on June 15 to international investors amidst a large amount of hype,

However, due to tight restrictions and the high valuations foreign buyers did not materialize in significant volumes, while domestic investors started to sell. The Tadawul Index has dropped by 5% since that debut in mid June.

Saudi Arabia’s growth in the economy slowed from a 10% peak during 2011 to only 3.5% during 2014.

The country has a designation of high income by the World Bank with a gross domestic product of more than $746.1 billion during 2014.

The richest citizens in Saudi Arabia have dropped this year in the list of billionaires by Forbes across the globe, in particular those heavily invested in oil.

Prince Alwaleed Bin Talah al Saud is the richest citizen in Saudi with a $27 billion net worth, but dropped to 34th place from 30th.

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