In the coming two to three decades, an unprecedented transfer of wealth is anticipated, with over 1,000 billionaires poised to hand down a whopping $5.2 trillion to their heirs.
This stems from the UBS Billionaire 2023 report, underscoring the advanced age of the current billionaire cohort, with many surpassing their 70s.
According to the report,
- “During the next 20 to 30 years, over 1,000 of today’s billionaires are likely to transfer more than $5.2 trillion to their heirs.” The calculation is derived by aggregating the wealth of the 1,023 billionaires currently aged 70 or older.
The foundation for this colossal wealth transfer is rooted in the prosperity generated by entrepreneurial activities since the 1990s, paving the way for future generations of billionaire families, despite the current wealth levels remaining below the 2021 peak.
Delving deeper, the billionaire community experienced a partial recovery in wealth during the 2022/2023 period, buoyed by the resurgence in Europe’s Consumer and Retail billionaires.
After a nearly 20% decline in the previous 12 months, the total number of billionaires globally increased by 7%, reaching 2,544, while their combined wealth rebounded by 9% from $11.0 trillion to $12.0 trillion.
It is noteworthy that, despite this recovery, the billionaire community remains smaller than its 2021 zenith, which saw 2,686 individuals collectively valued at $13.4 trillion, following the post-pandemic asset price rally.
A significant highlight of the UBS report is the remarkable performance of the EMEA region, marking its strongest showing during the nine editions of this study.
Fueled by the post-pandemic shopping surge in 2022, the profits and share prices of France’s leading luxury goods and cosmetics companies soared, benefiting the billionaire families associated with them.
The EMEA region witnessed a 21% increase in total wealth, reaching $3.2 trillion, accompanied by a 10% growth in the number of billionaires from 599 to 658.
In the Middle East, the United Arab Emirates (UAE) saw a notable jump in wealth, expanding by 157% from $38.7 billion to USD 99.4 billion, and becoming home to more billionaire wealth than any other country in the region. Its economy rebounded sharply in 2022 from the pandemic, with GDP expanding by 7.6%.
