Sixty-four percent of Saudi HNWIs (high net worth individuals) successfully maintained their wealth during the recent economic downturn, of which 31 percent managed their wealth with somewhat growth, according to the latest report of Wealth Insights from Barclays.
The Barclays Wealth Insights Volume 17 research also reveals that Saudi HNWIs are of the view that entrepreneurs should persist if their business is not progressing as planned, as opposed to cutting losses. They also believe that greater earnings along with a higher societal status are an outcome of an individual’s persistence and efforts. Furthermore, over 86 percent of HNWIs in the Kingdom believe that a person’s income and position in society is a direct result of their individual efforts and that a large extent of the outcome of elements are in their control.
The report argues that the wealth of HNWIs bears similar characteristics, rising faster than the wealth of the overall population during boom times, and falling more quickly in a downturn. This is particularly true of entrepreneurs who, by definition, have had to take risks in order to become successful. Compared with wealthy individuals who have earned their wealth through inheritance or savings over time, those that became wealthy through the sale of a business do indeed have a higher risk tolerance.
No two wealthy individuals are the same, but Barclays research has shown consistently that differences between wealthy individuals can be observed depending on how they have acquired their wealth. Additionally, as the global pattern of wealth creation shifts, these differences have significant implications for how the wealthy spend, save and share their money.
As a result, entrepreneurs need to embrace volatility and recognize that fortunes can be lost as quickly as they were made. Among the sample, wealthy entrepreneurs are more likely than those who have inherited or acquired wealth through savings or bonuses to say that their wealth accumulation has been a rapid process. Wealthy entrepreneurs have also, however, experienced greater fluctuation in their wealth over time.
Barclays recent report titled "Origins and Legacy: The Changing Order of Wealth Creation" provides an in-depth study into how wealth is now being made, spent and shared across the world. This 17th volume of Barclays Wealth Insights investigates how the global landscape of wealth is changing, and how wealthy individuals plan for their legacy and philanthropy.
Rory Gilbert, managing director and head of wealth and investment management, Barclays, Middle East and North Africa, said: "HNWIs in Saudi Arabia are of the viewpoint that income and position in society are directly correlated to the individuals’ efforts, which may be the reason that Saudi respondents believe that entrepreneurs should continue persisting if their business is floundering and not give up. Once wealth is created, Saudi respondents stated that they were most likely to save and invest their wealth, following which they would be most likely to spend on their lifestyle."
