UAE mints 15,000 millionaires in 2019
The number of millionaires in the UAE grew by almost 15,000 last year and another 41,300 high net worth individuals will make the Emirates their home over the next four years, according to a new study.
According to Knight Frank’s wealth report, the number of people with a wealth of $1 million grew from 182,768 in 2018 to 197,565 in 2019, an increase of 8 percent or 14,994 new millionaires. The numbers are expected to grow by 21 percent over the next four years to 238,834.
Meanwhile, the number of ultra-high net worth individuals (UHNWIs) – those with over $30 million (Dh110 million) assets – grew by 5 percent, or 77, to 1,681 in 2019 compared to 1,604 in the previous year. These numbers are projected to grow by 24 percent to 2,079 by 2024.
The UAE has been ranked 29th in the world for housing the highest number of UHNWIs.
And while the number of billionaires in the UAE remain unchanged at 62 in 2019, the nation will be home to another five billionaires by 2024, taking the tally to 67.
In the GCC, millionaires with over Dh110 million is expected to grow by 26 percent over the next five years to over 9,100. Over this period, Saudi Arabia and the UAE will be home to 57 percent and 23 percent of these UHNWIs, respectively.
“The rate of wealth creation in the GCC region is expected to remain strong. Over the next five years we expect the number of HNWIs to increase by 12 percent on average and UHNWIs by over 26 prer cent over the same period,” said Taimur Khan, associate partner at Knight Frank Middle East. The Middle East is home to 16,581 UHNWIs, up from 10,043 from 2014, a 41 percent increase.
Globally, the data showed that over 31,000 additional UHNWIs were created globally in 2019, an increase of 6.4 percent.
North America dominates with more than double the UHNWI population of Europe – home to an additional 13,911 in 2019 compared to 4,682 in Europe.
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Why UAE mobile network name has changed again
Etisalat, the UAE’s largest telecom operator, on Wednesday, March 4, changed its network name to ‘ UAE 4 Humanity’.
The network change is to mark the coming up of the Humanitarian City, where 215 evacuees from Covid-19-hit China are housed.
It was done following directives from the leadership to provide the evacuees with the necessary monitoring and preventative medical care following their evacuation from the epicentre of the outbreak – Hubei province.
The city highlights the country’s humanitarian aid and medical care capabilities during times of crises.
It has been set up as per the highest of standards to facilitate quality care for individuals admitted, ensuring their privacy and dignity are maintained throughout their stay. Entertainment facilities – both indoor and outdoor – are provided for evacuees. Medicines, food and produce, and other essential are also be provided.
Public and private sector entities in the country joined forces to ensure that this ambitious project was completed within a record period of time, embodying the UAE’s steadfast approach to assisting those in need.
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Coronavirus: Etihad staff not asked to go on unpaid leave
Abu Dhabi’s Etihad Airways has denied sending an email to its staff, asking them to go on leave as the Covid-19 coronavirus cases continue to surge around the world.
Instead, it has asked staff to bring forward their paid leaves to April, the airline confirmed to , stressing that staff has not been asked to go on unpaid leave.
“Etihad Airways has asked cabin crew members to consider bringing forward paid leave from later this year to April, due to changed demand caused by the Covid-19 virus,” the airline told.
“Global restrictions on travel and retiming of events have caused many passengers to change their travel arrangements, and the airline is among many realigning resources to accommodate these changes. Etihad has not asked staff to take unpaid leave.”
Etihad has canceled most flights to mainland China because of the virus, and airlines around the world have warned of the toll it is having on operations.
News agency Reuters earlier cited an internal email the airline sent to its staff, and reported that the carrier had cabin crew to take paid leave between April 6 and May 5. The email did not mention the virus, the report added, and also didn’t mention a reason for the proposal.
“This is a great opportunity to take some time out or rest, relax and celebrate with family and friends. Leave slots will be available … in blocks of six, 12, or 18 days,” Reuters cites the email as saying.
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UAE central bank cuts interest rates by 50 bps
The Central Bank of the UAE, CBUAE, said on Tuesday that it was cutting interest rates on certificates of deposit in line with US dollar rates, after the US Federal Reserve Board’s emergency decision to cut rates by 50 basis points.
The UAE central bank said its repo rate for borrowing short-term liquidity had also been cut by 50 bps.
Certificates of Deposit, which CBUAE issues to banks operating in the country, are the monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system.
The US Federal Reserve cut interest rates on Tuesday in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
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UAE output contracts for first time since Jan 2010
The non-oil private sector of the UAE remained in the doldrums in February as overall business conditions declined for the second month running, the latest research data showed.
Businesses began to limit activity due to weaker new orders, while employment fell again amid efforts to streamline costs, said a research report by IHS Markit.
“Consequently, output expectations dropped sharply to a near two-year low, dampened by fears around the impact of the coronavirus outbreak on exports and supply chains,” it said.
David Owen, economist at IHS Markit, said that the non-oil private sector suffered another blow in February, with latest PMI data indicating a further deterioration in business conditions. “The headline reading of 49.1 was the lowest since August 2009, reflecting declines in output, new orders and employment.”
Meanwhile, supplier performance was hit by the coronavirus outbreak in China, with PMI surveys globally noting significant delays to freight deliveries, as well as weaker export demand.
“With many UAE firms also suffering from credit issues, backlogs rose for the fifth month running. While many firms remained upbeat for the year ahead, business expectations were hit by fears that the virus outbreak could damage an already struggling domestic economy. As a result, confidence for future output fell to a near two-year low,” said Owen.
The latest data signalled a second successive month of deterioration, driven by declines in output, new orders and employment.
Most notably, output levels contracted for the first time in over ten years, after stagnating in January. Companies reported that continued demand weakness led them to restrict activity, although the rate of reduction in output was only moderate. Input buying and stock levels subsequently declined, said the report.
In addition, the coronavirus outbreak in China reportedly led to a slight drop in export orders, the second in five months, which weighed on overall sales. The virus outbreak also caused delays of several input deliveries at UAE firms, such that overall vendor performance improved only fractionally in February.
“These delays, combined with ongoing credit issues at many businesses, led to a fifth consecutive month of rising backlogs. UAE businesses chose not to increase workforce numbers, with employment instead dropping for the second month in a row due to further declines in new orders and efforts to streamline staff costs,” said the report.
In Saudi Arabia, February data pointed to more challenging business conditions across the non-oil private sector, with output, new orders and employment trends all losing momentum since the start of 2020.
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Assessment of VAT impact to take 3-5 years: UAE Minister
It will take around three to five years to collect the required data for the assessment of the impact of the Value Added Tax (VAT) on the UAE’s Gross Domestic Product (GDP), according to a UAE minister.
Hamid Obaid Al Tayer, the Minister of State for Financial Affairs and Chairman of the Board of Directors of the Federal Tax Authority (FTA) told members of the Federal National Council (FNC) on Tuesday that it was too early for the government to evaluate the impact of VAT to the country’s economy because of insufficient data.
“It requires a period of three to five years to study the impact of VAT on the impact of the country’s economy,” said Al Tayer. “We need ample time to compile sufficient data to evaluate the effects of the tax. The only study that was conducted in 2018 in just not enough. It’s therefore too early to rely on such data to assess the impact of VAT.”
The minister was responding to a question from Hamad Al Rahoumi, first deputy speaker of the FNC and a member representing Dubai about the effects of VAT on the economy, the consumers and traders two years after its implementation.
A five percent VAT was introduced in UAE from January 2018 and the impact of the tax is yet to be known.
“There have been many challenges, including the low oil prices, geopolitical factors, sanctions imposed on certain nations and now the coronavirus outbreak. All these factors have to be taken into account when assessing the impact of VAT,” said Al Tayer.