Arab Oil Millionaires, Slumping Oil Prices and the UK Economy
Lots of people expect a lot of changes in the way oil millionaires spend their wealth as the oil prices continue to slump. However, it is now clear falling prices of oil have not had any effect on the prospects of Arab world oil millionaires. In fact, the number of oil millionaires today is expected to go up in the coming years.
There is a strong expectation that oil millionaires from the Middle East will continue growing by 4.1 percent within the next four years, according to a UK study where the number of millionaires by 2019 would be 226,809. A barrel of oil was trading at about $100 in the last four or so years, which was a very comfortable price and within that time the millionaire within the Gulf region rose to around 185,816 or by about 8 percent.
Among gulf countries Qatar, United Arab Emirates and Saudi Arabia are the chief drivers when it comes to creation of wealth. This does not mean others are not doing their part. Bahrain and Qatar could end up with the largest number of high net worth individuals or millionaires, meaning that the crashing oil price will not be affecting wealth creation among individuals.
There are a lot of factors contributing to the fast growing millionaires in Qatar and Bahrain, chief among them the economies of the two countries, especially the size. The economies are not very developed and a bit smaller; they stand the greatest chance of growth more than such markets as Saudi Arabia and UAE that have already matured.
Even as financial analysts and economist turn their focus on the happenings in the gulf region in the wake of falling oil prices globally, London is also keeping tabs on this issue, particularly on the young Arabs in the English capital. Without a doubt there are a huge number of rich young Arabs, a number that has continued to soar, who are always in London to spend their summer to a point where they have brought some tense moments in such London areas as Kensington and Knightsbridge.
In these London areas everyone is treated to expensive supercars the young Arabs love that zoom the streets now and then. While the tension caused by young wealthy Arabs has not escalated to anything worth writing about, Boris Johnson, the London Mayor has indicated that Middle East investment is very vital for the economy of the English capital. Even the investment of the young members of the gulf oil millionaires are contributing to the economy of one of world’s most loved cities.
The cost of oil has gone down by 50 percent to about $50 a barrel since mid 2014, raising sincere concerns over Middle East’s economic prospects, especially those countries that chiefly depend on income from the export of hydrocarbons. Economists believe throughout 2015 crude oil will continue to average about $55 per barrel and could end up putting more pressure on oil producing economies and even soar the debt levels. UAE and Saudi Arabia could be affected more.