The new breed of billioaires

The new breed of global billionaires will come from Africa, Asia and Latin America. Source: Supplied

JAKARTA, Nairobi, Ordos, Mumbai.   

They might not quite have the ring of London or New York but these could be the billionaire playgrounds of the future, if a recent wealth report is to be believed.

International development company Knight Frank’s 2014 Global Wealth Report analysed the views of more than 23,000 ultra-high net worth individuals (UHNWI) with a combined value of $1.5 trillion on everything from where they come from to how they feel about the economic climate.

It found the face of the ultra-wealthy is set to change drastically, with the biggest growth coming from the Middle East, Latin America and Africa which have already more than doubled their number of UHNWIs in the last decade.

Nairobi is set to be an economic powerhouse of the future. Pictured, fans react to the opening match of the World Cup. Pic: Tony Karumba.Source: AFP

While London and New York are still home to the largest number of billionaires, most of the growth in the last year has come from outside the US and Europe. The most important cities for growth in 2013 were Jakarta (up 38 per cent), Dubai (up 17 per cent), Dublin (up 18 per cent), Sao Paulo (up 13 per cent) and Nairobi (up 5 per cent).

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In the next decade the number of Africans with more than $100 million (known as centa-millionaires) is set to rise by 50 per cent. The continent is also expected to be home to 38 billionaires and grow at a faster rate than most of the world’s developed nations.

The report also found Asia will remain a huge force in global wealth, home to all but one of the top 25 cities for growth in UHNWIs over the next decade. The fastest growing countries include Vietnam, where the number of people with more than $30 million in assets will grow by 166 per cent. Indonesia (144 per cent), along with Cote d’Ivoire, Kazakhstan, Mongolia, Indian Tanzania, Ethiopia and Ghana — albeit off a low base.

Ho Chi Minh City is set to experience the most growth over the next decade when it comes to UHNWIs. Pictured, Hotel Rex in Ho Chi Minh City.Source: Supplied

Rapid growth in Vietnam is partly due to a relaxing of foreign investment rules that allow greater foreign ownership of listed companies and efforts to move the economy away from agriculture and towards industry and manufacturing. It’s a similar picture in the billionaire stakes with Indonesia, India and China leading the charge.

Former Goldman Sachs chairman Jim O’Neill said the changing face is part of a global shift driven partly by demographics. He dubbed the emerging economies of Mexico, Indonesia, Nigeria and Turkey the MINTs with “fabulous” demographics that can help accelerate economic growth.

“They not only have big populations, but there’s a balance between young and elderly ... This means they don’t need to do that much to grow by even faster rates in the decades ahead.”

London is home to the most billionaires at present, but that is expected to change.Source: Supplied

China will also remain a huge force, with the number of billionaires growing by 80 per cent in the next ten years, according to the report. Mr O’Neill said economic growth around seven per cent means the country is effectively adding $1 trillion to its economy every year, the equivalent of adding another Germany or Japan by the end of the decade.

Changing wealth patterns have also influenced spending habits. The Middle East, Africa and Latin America are taking the lead in terms of demand for foreign education, luxury spending and property investment.

Rolls Royce CEO Torsten Müller-Ötvös said the company’s record performance in 2013 was driven by growth in luxury markets, with sales up 17 per cent in the Middle East and 11 per cent in China, plus strong sales in Japan, Istanbul, Beirut, Lagos, Hanoi and Perth.

For most of the world’s wealthy their home is still a major investment — accounting for up to 30 per cent of their wealth in some cases. Cities are the most popular spot to live although vineyards, rural retreats and ski chalets are popular as second investments.

Mexican telecommunications tycoon Carlos Slim is already one of the world’s richest men.Source: AP

The rich are also getting richer. Three quarters of those interviewed said their fortune had grown over the last year, while just four per cent said it had fallen. The stock market is still their favourite way to make money, with 70 per cent saying they would increase their share holdings this year.

In terms of risks, the ultra-rich thought their main barrier to wealth creation came from global economic conditions (33 per cent) local economic conditions (19 per cent) and local political situation (18 per cent). One of the respondents, Lord Harris of Peckham who is a successful entrepreneur based in the UK said he is taking less risks in the current climate. Although Malaysian steel magnate Tan Sri A K Nathan said he plans to expand across the region in the years ahead.

Take a look at projected growth figures from Knight Frank across the next decade:
Ultra high net worth individuals ($30 million plus)

Africa - up 53 per cent
Asia - up 43 per cent
Australasia - up 18 per cent
Europe - up 21 per cent
Latin America - up 42 per cent
Middle East - up 35 per cent
North America - up 20 per cent
Global growth - up 28 per cent

Centa-millionaires (more than $100 million)

Africa - up 51 per cent
Asia - up 52 per cent
Australasia - up 20 per cent
Europe - up 22 per cent
Latin America - up 44 per cent
Middle East - up 36 per cent
North America - up 20 per cent
Global growth - up 31 per cent

Billionaires

Africa - up 52 per cent
Asia - up 66 per cent
Australasia - up 19 per cent
Europe - up 25 per cent
Latin America - up 45 per cent
Middle East - up 35 per cent
North America - up 21 per cent
Global growth - up 38 per cent

news.com.au 19 Jun 2014

Another bit of misinformation by the corporate media.

The allegation here is that (one of) the world's richest person is Carlos Slim.

The corproate media does NOT mention the (trillion dollar) fortunes of the Rothschild's banking dynasty.

Conspiracy Theory?