Israel had 1,000 new millionaires in 2007, according to the Merrill Lynch and Capgemini 2008 "World Wealth Report", bringing the number to 8,200, 13.6% more than a year earlier. The aggregate wealth of the millionaires was $38.5 billion, 10% more than in 2006.
The World Wealth Report defines a millionaire as a person with at least $1 million in liquid assets, excluding capital invested in assets and after deducting liabilities. The average wealth of the millionaires worldwide is $4 million.
Merrill Lynch and Capgemini note that the increase in the number of Israeli millionaires was double the average global increase of 6%. Merrill Lynch Israel private banking manager Sigal Shapira said, "The surge in financial markets, the sale of real estate, and other factors contributed to the increase in the number of millionaires residing in Israel."
A comparison with the increase of millionaires in other emerging markets shows that Israel is well below the average. The number of Indian millionaires rose by 22.7% compared with the previous survey, due in great part to the 11.8% annual growth rate by the Bombay Stock Exchange. China had the second fastest rate of growth in millionaires, with a 20.3% increase, followed by Brazil with 19.1%, South Korea - 18.9%, and Indonesia - 16.8%.
According to the 2008 World Wealth Report, 97 Israelis are multimillionaires with more than $30 million in liquid assets, 10 more than the year before. The World Wealth Report states that art and luxury collectibles (cars, boats, planes, etc.) are the number one items in millionaires' portfolio allocations in "investments of passion", at least 16% on each. Sammy Ofer, for example, bought a Van Gogh at an auction at Christie's for $40.3 million.
14% of the millionaires' investments of passion go towards jewelry, 14% on vacations and recreation, 12% on various luxury goods, 10% on healthcare, 8% on other collectibles, 5% each on sports and miscellaneous investments.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2008
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