Why it takes more money to be rich in the UAE than in US or UK

Have you ever wondered how much money it takes to be rich in the UAE?

Owning a house – preferably in a prime location, a sports car, a golf club membership, your kids going to a premium school (with at least a Dh50,000 in tuition fee per annum) – are all indications that you are faring well in your host country.

But, how much exactly does it take to be ‘wealthy’ and for others to consider that you have arrived in life in the UAE?

The answer is $2.6 million, which is the equivalent of Dh9.5 million, as per the findings of the deVere Group, an independent financial advisory organisation.

Surprisingly, it takes more money to be rich in the UAE than what it would take in the United States or the United Kingdom.

The deVere Group survey finds that in the United States, one would need $1.4 million (Dh5.1 million) to be called wealthy, whereas in the United Kingdom, it would be $1.3 million (4.7 million).

The money needed to be in this bracket drops in South Africa to $1.2 million (Dh4.4 million).

If you are in Hong Kong, you would need a little more in your kitty to be considered a rich person.

The average level of wealth someone would need to be deemed ‘wealthy’ in the Chinese state would be $2.8 million (Dh10.2 million).

More than 900 deVere clients throughout June and July, across these five territories – from where the international financial consultancy runs some of its largest operations - were asked ‘At what level of personal wealth would you deem someone wealthy?’

In Hong Kong, UAE, USA, UK and South Africa, the overall average level of wealth that people would need to have acquired, according to those surveyed, would be $1.86 million.

The poll was undertaken to help gain a more in-depth understanding into the perception of wealth.

Those polled were, in addition, asked ‘Does money bring you happiness?’

The overwhelming majority believe that it does.

A majority (89 per cent) of those in Hong Kong replied ‘yes’, with 86 per cent in the UAE, 83 per cent in the US, 78 per cent in the UK, and 74 per cent in South Africa responding in the same way.

Overall, 82 per cent of the survey’s participants believe that money does bring happiness.

“The poll highlights that wealth is a subjective, largely relative, issue.

“It’s our experience that an increasing number of people across these five territories are becoming what would be deemed as ‘wealthy’.

“However, whatever level you are financially, the most vital thing is to have a sound, workable, progressive financial strategy,” said deVere Group’s founder and chief executive, Nigel Green.

“In addition, as the findings reveal, it is widely believed that money can bring happiness. I suspect the reason why most people insist money is a major contributor to happiness is because it provides a wider scope of opportunity,” he added.

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