Africa and the Middle East are attracting a growing share of the $400 billion in wealth brought along by these ultra-rich migrants.
Since the onset of the COVID-19 pandemic, billionaires worldwide have been relocating more frequently, with key destinations like Switzerland, the UAE, Singapore, and the United States drawing significant numbers.
However, a noteworthy trend has emerged, Africa and the Middle East are attracting a growing share of the $400 billion in wealth brought along by these ultra-rich migrants.
A report by UBS Group AG released on Thursday reveals that approximately one in every 15 of the world’s 2,682 billionaires has relocated since 2020. The movement is driven by economic opportunities, tax benefits, political stability, and the appeal of emerging markets.
As billionaires grow older and their families expand, priorities are shifting towards quality-of-life considerations and legal frameworks that facilitate smooth wealth transfer across generations, according to the UBS Group AG report.
“The shock of the pandemic put a premium on first-class health care, while young families increasingly value excellent education and a safe environment,” according to the report, which estimates that the number of billionaires’ children has increased 56% to 6,441 in the past 10 years.
The number of billionaires worldwide has surged by over 50% in the past decade, with their combined net worth soaring by 121% to an impressive $14 trillion, according to the report.
However, global wealth creation has decelerated since 2020, largely driven by a decline in Chinese billionaires’ fortunes. Over the same period, their collective wealth has decreased by 5% annually, signalling a significant shift in the dynamics of global wealth accumulation.
A recent report by Henley & Partners’ 2024 Africa Wealth Report reveals that Africa is home to 135,200 high-net-worth individuals (HNWIs) with liquid investable wealth exceeding USD 1 million, along with 342 centi-millionaires worth USD 100 million or more, and 21 billionaires.
Africa’s ‘Big 5’ wealth markets, South Africa, Egypt, Nigeria, Kenya, and Morocco, collectively represent 56% of the continent’s millionaires and over 90% of its billionaires.
Business Insider
