Billionaire Ambitions
- TF
- Apr 30, 2024
- 2 min read
UBS conducted an online survey of its billionaire clients booked in Europe (incl. Switzerland), Middle East, Singapore, Hong Kong SAR, and the United States between 28 June and 17 September 2023. The total sample size was 79 respondents.
Following, are some key findings included in the UBS Billionaire Ambitions Report 2023.
• New billionaires acquired greater wealth through inheritance rather than entrepreneurship.
• 137 people became billionaires for the first time with total wealth of USD 291.5 billion. Out of these 137 people: 53 people inherited USD 150.8 billion; 84 were new self-made billionaires totaling less at USD 140.7 billion.
• During the next 20 to 30 years, over 1,000 of today’s billionaires are likely to transfer more than USD 5.2 trillion to their heirs.
• Governing bodies like family assemblies, family councils, business councils and investment committees grow in importance.
• The world’s largest concentration of billionaire wealth is still in the Americas, although there was little growth. The continent has 867 billionaires, accounting for a total USD 5.0 trillion.
• France is home to the region’s largest concentration of billionaire wealth, with 34 individuals accounting for a total of USD 501.6 billion.
• The number of UAE billionaires increased from 10 to 17.
• In the APAC region, markets with smaller numbers of billionaires such as Indonesia, the Philippines, Singapore, and Taiwan saw wealth increase by almost a third. By contrast, billionaire wealth fell in India and expanded more slowly in Greater China.
Industrial Billionaires
There are early signs of improving fortunes for industrials billionaires. In this UBS report, the Industrials sector includes Automotive, Construction and Electrical sub-sectors.
-Industrial billionaires grew at a compound average of 15%, outstripping all other sectors to end the period at USD 1,259 billion. Fortunes are improving in countries that promote energy transition and higher defense spending.
-Leading industrials billionaires include entrepreneurs involved in energy transition, such as US and Chinese electric vehicle makers, as well as manufacturing businesses.
-Industrial billionaires have benefited from policies in countries that boost domestic industries, opting for security and national production over cost. For example, in 2022, the Biden Administration introduced the Inflation Reduction Act.