The number of UK millionaires fell between 2000 and 2001 as a result of the downturn in markets and ...
The number of UK millionaires fell between 2000 and 2001 as a result of the downturn in markets and the dot.com bubble, however, analysts are suggesting the new hot market will become Muslim millionaires which will need specialist or tailored products.
The fall of technology stocks saw around 1.4% of the UK millionaire sector tipped back into high-net worth status rather than millionaire last year, says the latest report by Datamonitor, as the numbers of millionaires dropped from 69,600 to 68,700.
However, self-made money will continue to prosper as the number of millionaires is expected to exceed 100,000 by 2006, continues the document produced by Datamonitor's financial services department, albeit the growth of high-net worth individuals will be slower than in past years.
Muslims are likely to be the next key customer target group in the UK, says Nicholas Stephens, Datamonitor's global wealth analyst, as there are though to be around 1.75m Muslims in the UK or 2.9% of the UK population.
Around 5,400 of these are thought to be high net worth individuals (based on the number of people registered at Mosques) with potential liquid assets of £3.6bn, and at least one-third of the Muslim population is believed to be in need of Sharia-compliant products.
"The market for Islamic (Sharia-compliant) finance in the UK is set to grow hugely as a huge gap in the market exists for Sharia-compliant equity and mortgage products. Muslims have historically been underserved by UK financial institutions, but this is set to change," says Stephens.
Parsoli UK's Global Islamic Equity Fund was the first ISA-compliant Islamic fund in the UK, however, HSBC is being touted as a stronger provider at this early stage because of its HSBC Amanah Finance division which is already used to dealing with Sharia law products.
Muslims have been showing increasing readiness to invest in the stock market since the mid1990s when the Fiqh Academy decreed Muslims could invest in equities, and analysts are predicting intermediaries might find the specialist market easier to advise because Muslims are located in such well-defined areas of the UK.
For a copy of the UK High Net Worth Customers report, which costs £1,995, contact Datamonitor sales on +44 207 675 7073.
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