Despite uncertainties in economic conditions, the appetite for wealthy collectors remains robust as individuals turn to tangible investments such as cars and paintings, which are likely to appreciate in value, said an industry expert.

“Within the Middle East, the Luxury Spending Index produced by Wealth-X reveals that ultra high net worth individuals (UHNWIs) show a stronger propensity for luxury automobiles and collectables than the global average,” added Dana Salbak, head of Mena Research at Knight Frank.

“Both automobiles and collectables are a way of illustrating status and appeal to a rapidly growing and young population,” Salbak said, commenting on Knight Frank’s Luxury Investment Index (KFLII), which increased 7 per cent in 2015.

The Index, which tracks the performance of 10 investments of passion and was presented at the Knight Frank Wealth Report launch at the ADGM (Abu Dhabi Global Markets), reveals that classic cars (+17 per cent) continue to top the league.

Contemporary and modern art performed particularly strongly this year, with Picasso’s Women of Algiers setting an-all time auction high of $179 million, according to the Index.

“As individuals in emerging markets become wealthier, we expect to see the numbers of collectors increase. Not only do collectables represent a safe asset investment, they are a way of illustrating status and a sense of having ‘arrived’. Last year, the world’s top 200 art collectors came from 36 countries, compared with 17 in 1990,” said Salbak.

Seeking new fields to capitalize on found a lot of wealthy entrepreneurs and business people investing in football clubs. While not everyone may be a fan, an annual Review of Football Finances conducted by Deloitte, reveals there is money to be made in the sector through TV revenues, ticket sales, and commercial revenues (including shirt deals and stadium rights), the Wealth Report said. – TradeArabia News Service