The (ultra) rich get (ultra) richer: The wealth controlled by ultra-rich families is expected to hit USD 9.5 tn by 2030, up 73% from today’s USD 5.5 tn, Bloomberg reports, citing estimates from consultancy Deloitte. Family offices — private investment firms for the wealthy — are growing fast, with their numbers projected to rise by one-third to over 10.7k over the same period.

What’s driving the growth? Wealth inequality is concentrating “more money in the hands of the very rich,” while it is increasingly becoming easier to set up family offices, the outlet reports. More family offices are popping up, and some are rivaling hedge funds in size and talent. These firms are taking on bigger roles in markets with some acting as activist investors.

Uh, Enterprise, what are activist investors? Activist investors are shareholders who use their equity stake to influence a company’s operations, often pushing for changes to increase shareholder value.

Most family offices are small but mighty: The average family office manages some USD 2 bn with just 15 employees, and one-third of these firms are run by someone outside the family, according to the Deloitte report. “It can definitely be risky managing that much wealth,” Rebecca Gooch, global head of insights for Deloitte Private said. “Family offices really need to be careful about who they bring on board,” she added.

ALSO WORTH NOTING FROM PLANET FINANCE- The UAE is emerging as a standout among higher-rated emerging market borrowers as a global risk-off, worries about US growth, and lower US yields push investors to look at safer EM assets in search of returns, Bloomberg suggests. “Investors like the combination of twin surpluses, FX reserve accumulation, lack of political noise and a supportive local bid,” fixed-income portfolio manager at Arqaam Capital, Fady Gendy, told the outlet.

EGX30

31,030

+0.1% (YTD: +24.7%)

USD (CBE)

Buy 48.37

Sell 48.51

USD (CIB)

Buy 48.39

Sell 48.49

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,099

-0.2% (YTD: +1.1%)

ADX

9,448

-0.3% (YTD: -1.4%)

DFM

4,373

+0.04% (YTD: +7.7%)

S&P 500

5,408

-1.7% (YTD: +13.4%)

FTSE 100

8,181

-0.7% (YTD: +5.8%)

Euro Stoxx 50

4,738

-1.6% (YTD: +4.8%)

Brent crude

USD 71.06

-2.2%

Natural gas (Nymex)

USD 2.28

+0.9%

Gold

USD 2,524.6

-0.7%

BTC

USD 54,130.50

+2.4% (YTD: +28.5%)

THE CLOSING BELL-

The EGX30 rose 0.1% at Thursday’s close on turnover of EGP 5.5 bn (41.7% above the 90-day average). Regional investors were net sellers. The index is up 24.7% YTD.

In the green: Elsewedy Electric (+2.1%), Madinet Masr (+1.4%), and Ezz Steel (+1.4%).

In the red: Edita (-3.7%), ADIB (-2.2%), and Orascom Construction (-2.0%).

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