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Emerging wealth: The ultra rich of emerging markets.

Summary: Wealth is rising -- fast - in emerging markets but who are the new custodians of massive capital? A new study by Forbes Insights and Societe Generale reveals

The world's wealth is shifting continents and crossing borders. It's rising up in the pockets of people who are younger and from industries not previously seen in the corridors of the High Net Worth castle. In particular, wealth is rising in the emerging markets of Africa, Central and Eastern Europe, and the Middle East.

A recent report by Forbes Insights in association with Societe Generale Private Banking takes a closer look at the evolution of personal wealth in these regions, all of which are experiencing rapid change. The study is based on analysis of 250 UHNWIs, with an average fortune of $2.8 billion, in 22 countries in central and eastern Europe, the Middle East and Africa.

Speaking at the launch of the report in March, Editor Kasia Moreno said 98 per cent of the 250 billionaires surveyed were male and 78 per cent were first generation.

"First I want to put the report in a bigger historical and global perspective. The world is now undergoing wealth creation in both emerging and mature markets. This is happening for the first time in history. In mature markets, it first started towards the end of the industrial revolution but now emerging markets have joined with the change of political climates and economic reforms. Of course the current technological revolution is accelerating this.

"In 1950, about 30 per cent of people in the world lived in developing countries. The revolutions that are happening now, both in emerging and western markets hopefully will lead to the flip of this so that 75 per cent or more of the world's people will live in advanced communities. This comes from a book by Michael Spence called The Next Convergence: The Future of Economic Growth in a Multi- Speed World."

Average wealth in emerging markets is still lower than in mature markets, Moreno said. "The average wealth of the 20 richest people in the US ($24.3 billion) is over $20 billion. It's the same in Western Europe ($20.1 billion). In Russia it's around half that at $10.1 billion, Middle East $7.6 billion, Eastern and Central Europe $3.2 billion, and Africa $2.3 billion."

So not quite on par with developed countries yet but rapidly joining the global ranks, said Moreno, which is "quite an achievement considering the majority of those fortunes are first generation and would have been made over the last 20 years".

"The world is now undergoing wealth creation in both emerging and mature markets. This is happening for the first time in history"

2013 CPI Financial. All rights reserved. 2011 CPI Financial. All rights reserved.

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Publication:Wealth
Geographic Code:60AFR
Date:Jun 30, 2013
Words:471
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