Saudi Arabia is known for its vast oil wealth, which has helped create one of the world’s highest concentrations of super-rich households. The country has many millionaires living in major cities like Riyadh, Jeddah, and Dammam. However, the question remains: where do millionaires live in Saudi Arabia?
According to the Global Wealth Report 2019 by Credit Suisse, Saudi Arabia is among the top 20 countries worldwide, with the highest number of ultra-high net worth individuals (UNHWIs) worth at least $100 million. The report also reveals that the number of dollar millionaires in Saudi Arabia is expected to grow by almost 10 percent in the coming years. This growth is driven by the country’s focus on diversifying its economy and attracting foreign investments.
While most millionaires in Saudi Arabia reside in major cities, some prefer to live in quieter areas like Al Khobar, Al Jubail, and Yanbu. These cities are known for their beautiful beaches, excellent healthcare facilities, and world-class education systems. Moreover, these areas are also home to some of the country’s largest industrial complexes, which attract many wealthy entrepreneurs and investors.
Demographics of Wealth in Saudi Arabia
Population of Millionaires
Saudi Arabia is one of the wealthiest countries in the Middle East, with a growing population of millionaires. According to a report by Statista, in 2019, the adult population in Saudi Arabia was distributed among different wealth range groups, and 4.2 percent of the population belonged to the highest wealth range group, over 1 million U.S. dollars. In addition, according to the BCG Global Wealth Report 2020, 54.5 percent of the country’s wealth was held by millionaires in 2019, and the number of millionaires in Saudi Arabia is expected to grow by 1.2 percent annually over the coming years.
Concentration of Wealth
The concentration of wealth in Saudi Arabia is high, with a small percentage of the population holding a large proportion of the country’s wealth. According to a report by Knight Frank, Saudi Arabia has the highest number of ultra-high-net-worth individuals (Ultra HNIs), with a net worth of $30 million and more, in the Middle East. The report also states that the ranks of Saudi Ultra HNIs recorded an increase of 17 percent in 2022 and are estimated to rise by 10.4 percent in 2024.
Comparison With Other Countries
Compared to other countries, Saudi Arabia has a relatively high concentration of wealth. According to a report by Credit Suisse, the top 1 percent of the population in Saudi Arabia holds 45.2 percent of the country’s wealth, which is higher than China (43.8 percent), Japan (37.8 percent), and the United States (37.3 percent). However, the concentration of wealth in Saudi Arabia is lower than that of some other countries in the Middle East, such as the UAE, where the top 1 percent of the population holds 50.5 percent of the country’s wealth, according to the same report.
In conclusion, Saudi Arabia has a growing population of millionaires, and the country’s wealth concentration is high. However, Saudi Arabia’s wealth concentration is relatively lower compared to other countries in the Middle East and the world.
Critical Locations for Millionaires in Saudi Arabia
Saudi Arabia has the highest number of millionaires in the Middle East and North Africa. The country has witnessed a significant increase in high-net-worth individuals, rising from 210,000 in 2020 to 224,000 in 2021.
Riyadh
Riyadh is the capital of Saudi Arabia and is home to many millionaires. The city has a population of over 7 million inhabitants and is the country’s financial hub. The city has a thriving business community, and many of the millionaires in the town are entrepreneurs who have made their fortune in diverse industries such as oil, finance, and real estate.
Jeddah
Jeddah is the second-largest city in Saudi Arabia, with a population of over 3.5 million. The city is located on the Red Sea coast and is an important commercial hub. Jeddah is home to a large number of millionaires, and many of them are involved in the shipping and logistics industry. The city is also home to a thriving real estate market, and many millionaires have made their fortune by investing in the city’s property market.
Eastern Province
The Eastern Province of Saudi Arabia is home to many millionaires. The province is located on the Persian Gulf coast and is home to the country’s oil industry. Many of the millionaires in the province have made their fortune in the oil and gas industry. The province is also home to many expatriates who work in the oil industry, many of whom are high-net-worth individuals.
Overall, Saudi Arabia has many millionaires, and they are spread out across the country. Most millionaires are based in Riyadh, Jeddah, and the Eastern Province. The country’s thriving economy and business-friendly environment have attracted many high-net-worth individuals to the government.
Economic Factors Influencing Millionaire Population
Oil and Energy Sector
Saudi Arabia is known for its vast reserves of oil and natural gas. The country is the world’s largest oil exporter, significantly influencing the global energy market. The oil industry has played a significant role in the growth of the Saudi Arabian economy, creating numerous job opportunities and generating wealth for the country. The oil sector has attracted foreign investment and has significantly contributed to the country’s GDP. The presence of such a lucrative industry has resulted in the creation of numerous millionaires in Saudi Arabia.
Real Estate and Investments
Real estate is another sector that has played a significant role in the growth of the millionaire population in Saudi Arabia. The country has seen a surge in real estate development, particularly in cities like Riyadh and Jeddah. The increase in demand for luxury properties has resulted in a rise in property prices, generating wealth for property owners. The Saudi Arabian government has also implemented policies to attract foreign investment in the real estate sector, increasing the number of millionaires in the country.
Diversification and Vision 2030
Saudi Arabia has embarked on a mission to diversify its economy and reduce its reliance on oil. The country’s Vision 2030 plan aims to create a thriving economy, generate jobs, and attract foreign investment. The plan includes initiatives to develop non-oil tourism, healthcare, and technology sectors. The implementation of these initiatives has resulted in the creation of numerous job opportunities and has attracted foreign investment. The diversification of the economy has also resulted in the growth of the millionaire population in Saudi Arabia.
In conclusion, a number of economic variables, such as the oil and energy industry, real estate and investment, and the diversification of the economy through Vision 2030, can be credited for the rise in the number of millionaires in Saudi Arabia. These variables have led to the emergence of multiple work prospects, the production of income, and the expansion of the nation’s resources.
Wealth Management and Private Banking
Saudi Arabia is home to many millionaires, so wealth management and private banking are essential services in the country. Here are some of the critical aspects of wealth management and private banking in Saudi Arabia:
Domestic Banks
Wealth management and private banking services are offered to high-net-worth individuals (HNWIs) and ultra-high-net-worth people (UHNWIs) by domestic banks in Saudi Arabia. Financial planning, estate planning, and investment management are some of these services. Al Rajhi Bank, National Commercial Bank, and Saudi British Bank are a few of Saudi Arabia’s top local banks.
International Banks
International banks also provide wealth management and private banking services in Saudi Arabia. These banks offer various services, including investment management, asset protection, and tax planning. Some of the leading international banks in Saudi Arabia include Citibank, HSBC, and J.P. Morgan.
Investment Strategies
Investment strategies for HNWIs and UHNWIs in Saudi Arabia include traditional and alternative investments. Traditional investments include equities, fixed income, and real estate. Commodities, hedge funds, and private equity are examples of alternative investing.
A research published by Credit Suisse projects that by 2025, there will be 54% more millionaires in Saudi Arabia. It is anticipated that the country’s need for wealth management and private banking services will increase as a result of this wealth expansion.
In conclusion, wealth management and private banking are essential services for millionaires in Saudi Arabia. Domestic and international banks provide various services, including investment management, financial planning, and estate planning. Investment strategies for HNWIs and UHNWIs in Saudi Arabia include traditional and alternative investments.
Lifestyle and Expenditure of Millionaires in Saudi Arabia
Real Estate
Millionaires in Saudi Arabia are known for their lavish lifestyles, and their real estate choices reflect that. They invest in luxurious villas and apartments in exclusive gated communities like the Ritz-Carlton Residences in Riyadh. These properties have the latest technology and amenities, including private swimming pools, gyms, and cinemas.
Luxury Goods and Services
Saudi Arabian millionaires are known for their love of luxury goods and services. They will pay top dollar for the latest designer fashion, luxury cars, and private jets. Dubai, a popular destination for Saudi Arabian millionaires, offers many luxury goods and services, including high-end shopping malls, luxury hotels, and fine-dining restaurants.
Philanthropy and Social Responsibility
Many Saudi Arabian millionaires are also involved in philanthropic and social responsibility initiatives. They donate generously to charitable organizations and support various social causes like education and healthcare. Some of the most prominent philanthropists in Saudi Arabia include Prince Alwaleed bin Talal and Sheikh Mohammed Hussein Al Amoudi.
The lifestyle and expenditure of millionaires in Saudi Arabia reflect their immense net worth and desire to enjoy life’s finer things. While they are known for their opulent lifestyles, they also have a strong sense of social responsibility and are committed to giving back to their communities.
Future Trends and Projections
Wealth Growth Predictions
According to the Global Wealth Report, the number of millionaires in Saudi Arabia will continue to rise in the coming years. The report projects that the country will have 185,000 millionaires by 2027. This growth is expected to be driven by the country’s strong economic performance, high oil revenues, and increasing diversification efforts.
Emerging Industries
Saudi Arabia invests heavily in emerging industries such as renewable energy, technology, and tourism. These industries are expected to play a vital role in the country’s economic growth and diversification efforts. The government has launched several initiatives to support these industries and attract foreign investment.
Impact on the Global Economy
The global economy is expected to have a significant impact on the growth of Saudi Arabia’s wealth. The country’s economy is closely tied to the worldwide oil market, and any fluctuations in oil prices can significantly impact the country’s wealth. In addition, the country’s trade relationships with other regions, such as Asia-Pacific, Africa, Europe, North America, and Australia, can also affect its wealth growth.
Overall, the future looks promising for millionaires in Saudi Arabia. With a strong economy, emerging industries, and a favorable global outlook, the country is well-positioned for continued wealth growth in the coming years.
Regulatory Environment and Taxation
Investment Laws
Saudi Arabia has implemented several investment laws to encourage foreign investment. The nation’s Vision 2030 plan seeks to lessen its reliance on oil while diversifying the economy. As part of this aim, the government has launched a number of measures to draw in foreign investment. The Saudi Arabian General Investment Authority (SAGIA) promotes and regulates foreign investment in the country. SAGA offers several incentives to foreign investors, including tax exemptions and reduced tariffs.
Tax Policies
Saudi Arabia has a tax system that is based on Islamic principles. The country does not have a personal income tax, but businesses are subject to corporate income tax. The standard corporate tax rate in Saudi Arabia is 20%. However, companies that operate in specific industries are subject to a reduced tax rate of 15%. The country also has a value-added tax (VAT) of 5%, which was introduced in 2018.
International Agreements
Saudi Arabia has signed several international agreements to promote foreign investment. The country has signed bilateral investment treaties (BITs) with several countries, including the United States and the United Arab Emirates. These agreements provide a framework for protecting foreign investors and their investments in the country. Saudi Arabia is also a World Trade Organization (WTO) member and has signed several free trade agreements (FTAs) with other countries.
In conclusion, Saudi Arabia has implemented several investment laws and tax policies to encourage foreign investment. The country’s regulatory environment is favorable for businesses, and it has signed several international agreements to promote foreign investment.
Saudi Arabia in the Global Context
Position in the Middle East
The second-biggest nation in the Arab world and the largest in the Middle East is Saudi Arabia. It is the only Arab nation in the G20 and the biggest oil exporter in the world. With a GDP of more than $793 billion, the government is home to nearly 34 million people.
Comparison With Neighboring Countries
Regarding the number of millionaires, Saudi Arabia ranks second in the Middle East after the UAE. According to a report by Wealth-X, Saudi Arabia has around 7,020 ultra-high net worth individuals (UHNWIs), which is nearly 10% of the total UHNWIs in the Middle East. The same report also states that in the next five years, the number of millionaires in the Middle East will increase by 29.4% from 2020, with almost 330,000 new millionaires being created.
Role in International Wealth Markets
Saudi Arabia’s economy relies heavily on oil exports, but it is actively trying to diversify its economy. The nation’s Vision 2030 project seeks to grow other industries, including tourism, manufacturing, and technology while lowering its reliance on oil. In addition, the government is making significant investments in infrastructure projects. One such project is the building of NEOM, a new metropolis that is anticipated to grow into a center for technology and innovation.
Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, makes it a vital player in the global wealth market.
In conclusion, Saudi Arabia is a critical player in the global wealth market, with a growing number of millionaires and a significant presence in the Middle East.
Challenges and Considerations
Economic Diversification
Due to its economy’s heavy reliance on oil, Saudi Arabia is susceptible to changes in the price of crude oil globally. As stated in its Vision 2030 strategy, the nation has realized the need to diversify its economy and lessen its dependency on oil. However, it will take time; in the near run, this process can lead to economic uncertainty. Saudi Arabian millionaires can consider investing in sectors other than oil to reduce this risk.
Political Stability
Saudi Arabia is a monarchy with a stable political system, but it faces external and internal challenges that could impact its stability. The ongoing conflict in Yemen and tensions with Iran are potential sources of instability in the region. Additionally, the country has a history of political dissent, which has been met with strict crackdowns. Millionaires in Saudi Arabia need to be aware of these risks and take the appropriate safety measures to protect their fortune.
Social Factors
Saudi Arabia has strict social norms that may be unfamiliar to foreigners. Women, in particular, face significant restrictions on their freedom and mobility. Additionally, the country has a conservative Islamic culture that may clash with the values of some millionaires. Millionaires must understand and respect these cultural norms to avoid misunderstandings or conflicts.
Overall, while Saudi Arabia has seen significant growth in its millionaire population, several challenges and considerations should be considered. Economic diversification, political stability, and social factors shape the country’s business environment. Millionaires investing in Saudi Arabia should carefully consider these factors before making decisions.
Resources for Further Information
Official Statistics
Official statistics on the economy of Saudi Arabia are published by the central bank, the Saudi Arabian Monetary Authority (SAMA). Data on various economic indicators, including national accounts, balance of payments, and monetary and financial indicators, can be found on the SAMA website. Information about the distribution of wealth in the nation can also be found in the website’s section on wealth data.
Wealth Reports
Global wealth reports are an excellent source of information on the distribution of wealth worldwide. The Credit Suisse Global Wealth study offers essential insights into Saudi Arabia’s wealth distribution. Data about the nation’s millionaire population, their wealth, and the distribution of wealth among other demographic groups are also included in the report.
Economic Analyses
Economic studies of Saudi Arabia’s economy can offer essential insights into the elements that support the nation’s wealth concentration. The World Bank, the Foreign Monetary Fund (IMF), and other foreign agencies regularly publish reports on the country’s economy. These reports provide data on various economic indicators, including GDP, inflation, and unemployment, and can help identify the factors that contribute to the concentration of wealth in the country.
In conclusion, several resources are available for further information on the distribution of wealth in Saudi Arabia. International organizations’ economic analysis, wealth reports like the Credit Suisse Global Wealth Report, and SAMA’s official statistics can all offer insightful information about the elements that lead to the nation’s wealth concentration.
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Frequently Asked Questions
What are the most affluent neighborhoods in Riyadh?
Riyadh has several affluent neighborhoods, including Al Hamra, Al Mather, Diplomatic Quarter, and Al Faisaliah. These neighborhoods are known for luxurious villas, upscale shopping centers, and high-end restaurants.
Which cities in Saudi Arabia have the highest concentration of millionaires?
According to the Global Wealth Report 2019 by Credit Suisse, Riyadh and Jeddah have the highest concentration of millionaires in Saudi Arabia. Other cities with many millionaires include Dammam, Al Khobar, and Jubail.
How many millionaires reside in Saudi Arabia?
As of 2019, there were approximately 176,000 millionaires in Saudi Arabia, according to the Global Wealth Report 2019 by Credit Suisse. This number is expected to grow as the country invests in various industries in the coming years.
What is considered the wealthiest area in Jeddah?
The wealthiest area in Jeddah is Al Rawdah, known for its luxurious villas, high-end shopping centers, and upscale restaurants. Other affluent neighborhoods in Jeddah include Al Andalus, Al Hamra, and Al Zahra.
In which parts of Saudi Arabia do the ultra-rich prefer to live?
The ultra-rich in Saudi Arabia prefer to live in upscale neighborhoods in major cities such as Riyadh, Jeddah, and Dammam. These neighborhoods are known for luxurious villas, high-end shopping centers, and upscale restaurants.
What are the top 10 wealthiest cities in Saudi Arabia?
According to the BCG Global Wealth Report 2020, the top 10 wealthiest cities in Saudi Arabia are:
- Riyadh
- Jeddah
- Dammam
- Al Khobar
- Jubail
- Dhahran
- Taif
- Tabuk
- Al Ahsa
- Hail
These cities are home to many millionaires and ultra-high-net-worth individuals.
