The world has a new upcoming order of wealth – and it’s shifting away from the traditional international cities of London, New York and Paris.
In the near future, cities like Nairobi, Kenya; Jakarta, Indonesia and Mumbai, India, are just as likely to figure as leading world cities as those in the old west, according to a new report.
After examining the insights of more than 23,000 ultra-high net worth multimillionaires with a combined net worth of almost £1 trillion, this year’s Knight Frank Global Wealth Report disclosed the wealth landscape of the world is about to undergo seismic changes.
Although plenty of riches are locked up in the old developed countries, the new rising stars are in Africa, Latin America and the Middle East, which are regions that have seen the numbers of super-rich double in just a few years.
Qualifying as an ultra-high net worth individual means having money to burn on luxuries and investments.
What does ultra-wealthy mean?
The definition is at least £17.5 million of disposable cash in the bank, having eight cars and at least four homes.
While London and New York still have more super-rich than anywhere else, according to the report, the increase in their numbers has come from the rest of the world. The leading wealth generating cities in the past year which saw big rises in the number of super-rich were:
- 38% in Jakarta
- 17% in Dubai, United Arab Emirates
- 18% in Dublin, Eire
- 13% in Sao Paulo, Brazil
- 5% in Nairobi
The report also found Africa will see the number of millionaires with more than £60 million in cash double in the next 10 years.
In the Asia-Pacific, Vietnam is expected to become an ultra-rich hotspot with a 165% spurt in the number of wealthy with at least £17.65 million in assets. The capital, Ho Chi Minh city is set to see massive growth at the same time.
New rich hot spots
“Vietnam is prospering because of relaxed rules compared with many countries that allow foreigners to control companies,” said the report. “A cheap labour force and an easy way to do business are attracting many firms who would otherwise look elsewhere in the region.
“Indonesia is also benefitting from a similar economic climate.”
Other economic experts point to a shift in demographics that gives many countries a huge pool of young workers and aspirational customers for their goods.
These countries include Nigeria, Indonesia, Mexico and Turkey.
Read the full Knight Frank Global Wealth Report 2014
