Cover From left: Brazilian President Inacio Lula da Silva, Chinese President Xi Jinping, South African President Cyril Ramaphosa, Indian Prime Minister Narendra Modi and Russian Foreign Minister Sergey Lavrov at the 15th BRICS Summit in Johannesburg, South Africa on August 23, 2023
From left: Brazilian President Inacio Lula da Silva, Chinese President Xi Jinping, South African President Cyril Ramaphosa, Indian Prime Minister Narendra Modi and Russian Foreign Minister Sergey Lavrov at the 15th BRICS Summit in Johannesburg, South Africa on August 23, 2023
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According to a report by Henley & Partners, BRICS is establishing itself as a powerful rival to the G7
In a report released by investment migration consultancy Henley & Partners, the BRICS bloc’s investable wealth stands at US$45 trillion, anticipating an 85 per cent surge in millionaires in the next 10 years. According to its inaugural BRICS Wealth Report, published in partnership with global wealth intelligence firm New World Wealth, there are currently 1.6 million individuals with investable assets of over US$1 million in the grouping of the world’s leading emerging economies, including 4,716 centi-millionaires or ‘centis’ (with more than US$100 million in investable assets) and 549 billionaires.
The original BRICS cohort comprising Brazil, Russia, India, China, and South Africa added substantial new financial firepower and geopolitical clout with the inclusion of Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE in January. The report notes that the BRICS bloc now represents more than 45 per cent of the world’s population and accounts for a larger share (nearly 36 per cent) of global GDP than G7 countries (30 per cent) when adjusting for purchasing power parity (PPP). This has significantly increased its share of global wealth, challenging the world order and establishing itself as a powerful rival to the G7 and other international institutions.
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Above Customers are shopping for gold jewelry at a gold store in Suzhou, East China’s Jiangsu province
Customers are shopping for gold jewelry at a gold store in Suzhou, East China’s Jiangsu province
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The report shows that China takes the lead with five cities among the top 10 wealthiest. The report predicts India to lead in wealth per capita growth, followed by Saudi Arabia and the UAE. Dr Juerg Steffan, CEO of Henly & Partners, says in the report that the bloc presents attractive new opportunities for investors, entrepreneurs, and talented high-net-worth individuals.
“The inclusion of Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE is not just a political realignment but a recognition of their growing economic stature. The region, historically pivotal due to its energy resources, is now asserting a more diversified economic role,” says Steffan. He also notes that the growing participation from these countries in BRICS opens a realm of possibilities beyond the region, offering access to fast-growing consumer markets, strategic geographic positioning, and unique cultural and business environments.
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Above The BRICS bloc now represents more than 45 per cent of the world’s population and accounts for a larger share of global GDP than G7 countries
The BRICS bloc now represents more than 45 per cent of the world’s population and accounts for a larger share of global GDP than G7 countries
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However, despite the bloc now controlling more of the world’s GDP PPP than the G7, its citizens have significantly less economic mobility than those residing in the most advanced economies. According to the Henley Passport Power Index, the average percentage of global GDP that passport holders from BRICS countries can access visa-free is just 21 per cent compared to those from G7 nations who collectively enjoy access to over 80 per cent of global GDP on average without requiring a prior visa.
That being said, Dominic Volek, group head of private clients at Henley & Partners, says the extended BRICS community will create new opportunities in the investment migration sector, “both for investors seeking greater access to BRICS member states and for those within BRICS countries looking to improve their global access and passport power.
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Above India leads the BRICS pack with a forecasted 110 per cent increase in wealth per capita by 2033
India leads the BRICS pack with a forecasted 110 per cent increase in wealth per capita by 2033
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Looking ahead, when it comes to private wealth growth projections in the next decade, India leads the BRICS pack with a forecasted 110 per cent increase in wealth per capita by 2033. Saudi Arabia is runner up with its wealth per capita expected to expand by over 105 per cent in the next 10 years, followed closely by the UAE at 95 per cent. China (85 per cent), Ethiopia (75 per cent), South Africa (60 per cent), and Egypt (55 per cent) are all forecasted to enjoy wealth growth of over 50 per cent in the next decade.
The report is available to view on Henley & Partners’ website at www.henleyglobal.com.
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Sim Wie Boon is the general manager of Tatler Malaysia. Previously the print and digital editor, Sim hails from the land of the hornbills, Sarawak. Sim is now based in Kuala Lumpur and brings more than a decade of experience in the media industry as a journalist and broadcast producer.
As a self-proclaimed geriatric millennial, he appreciates the finer things in life, from savouring a sip of single malt whisky to relishing in the deliciousness of char siew. While reminiscing about the indie-sleaze era, Sim now finds solace in the soothing tunes of ambient music, staying active through running and occasionally succumbing to the addictive world of doom scrolling.
Follow him on Instagram or Threads at @simwb
