Wealth inequality in the Arab region is notoriously high. A small group of individuals control an extremely high share of regional wealth, while the region experiences growing poverty among the majority of the population.
Despite the economic crisis precipitated by the COVID-19 pandemic, the region’s economic elites have further increased their grip on regional assets, both in terms of their share and in absolute value.
While most economic groups in the region saw their holdings eroded to some degree, those in the lower middle and the bottom of the wealth pyramid plainly backslid in terms of their holdings. However, in contrast, several individuals broke through the $1 million or higher wealth marks. The region now has more – and richer – millionaires than in mid-2019.
These so-called “high net worth individuals” saw their control over assets swell by 44 per cent by the end of 2020. On the other end of the wealth spectrum, significant loss of wealth occurred. The median regional resident saw a decline in their wealth of around 28 per cent.
Among the poorest half of the Arab population, people’s wealth fell by a third. In the middle of the wealth distribution, people’s wealth stagnated, failing to even keep up with inflation.
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