The BRICS bloc, initially a loosely aligned group of emerging economies, is undergoing a remarkable transformation, emerging as a formidable economic powerhouse that wields significant Wealthiest and influence on the global stage.
This evolution is particularly noteworthy with the recent inclusion of new members from the Middle East and North Africa, which has expanded the BRICS cohort’s representation to encompass over 45 percent of the world’s population. Remarkably, when adjusted for purchasing power, this coalition now contributes nearly 36 percent of the global Gross Domestic Product (GDP), surpassing the combined contribution of the G7 nations.
A comprehensive report by Henley & Partners and New World Wealth sheds light on the unprecedented Wealthiest amassed by the BRICS nations. This bloc, comprising Brazil, Russia, India, China, and South Africa, has emerged as a financial force to be reckoned with, marking a substantial shift in the global economic landscape.
The report underlines the significance of the inclusion of new members from the Middle East and North Africa, showcasing the strategic expansion of the BRICS bloc beyond its original composition. The newfound diversity not only enhances the bloc’s economic prowess but also solidifies its influence on geopolitical matters.
The sheer magnitude of the wealth held by the BRICS nations is staggering, as highlighted in the report. The collective economic output of these nations, when considering GDP adjusted for purchasing power, underscores their prominence in the global economic arena. This places the BRICS bloc ahead of the traditionally influential G7, signaling a paradigm shift in the distribution of economic power worldwide.
The report delves into the specific economic contributions of each BRICS member, revealing the diverse strengths that collectively contribute to the bloc’s overall financial might. From Brazil’s dynamic and rapidly growing economy to China’s manufacturing prowess and India’s thriving service sector, each member brings a unique and complementary aspect to the BRICS alliance.
Anticipated Surge in Wealth for the BRICS Bloc on the Horizon
The collective investable wealth held by these nations presently amounts to $45 trillion, and a substantial 85 percent increase in their millionaire population is forecasted over the next ten years.
China takes the lead with an impressive 862,400 millionaires, closely trailed by India and the UAE. Notably, even countries confronting economic challenges, such as Ethiopia, exhibit noteworthy levels of private wealth.
In response to the findings of the BRICS Wealth Report, prominent personal finance and investment authority, Jeff D Opdyke, asserts that countries previously labeled as ‘developing,’ ’emerging,’ or subjected to the pejorative term ‘third world’ are now vibrant economies reshaping the global landscape. Opdyke highlights the transformative role of non-Western nations, with BRICS leading the charge, in propelling the world into a new era. Economically, these nations are spearheading a shift in the global order, ushering in an emerging economic, social, and monetary paradigm that challenges the norms accepted for nearly eight decades.
In the report, Dr. José Caballero, a senior economist at the IMD World Competitiveness Center in Switzerland, underscores the significance of BRICS as an organization. He points out that BRICS provides a collection of dynamic markets with relatively stable political systems, exerting potential influence on the future of the global economy. The robustness of these economies is attributed to the dynamism of their Small and Medium Enterprises (SMEs) sectors for some, and for others, it lies in the adaptability of their political systems. As an intergovernmental organization, the expanded BRICS members complement each other, ensuring the sustainability of their wealth-creation endeavors.
In the context of the Middle East, the report discloses a notable surge in the UAE’s millionaire population, experiencing a substantial 77 percent increase since 2013. As the foremost wealth hub in the Middle East, the UAE currently boasts 116,500 millionaires, which includes over 300 centis.
Over the past decade, both Saudi Arabia and Ethiopia have witnessed robust growth in private wealth, with their respective millionaire populations escalating by 35 percent and 30 percent.
Ranking the Wealthiest Cities in the BRICS Economies – A Top 10 List
China asserts dominance in the ranking of the Top 10 wealthiest cities within the BRICS grouping, with five cities securing coveted positions. Beijing, the capital, clinches the top spot as the wealthiest BRICS city, hosting 125,600 millionaires, which includes an impressive 347 centi-millionaires and 42 billionaires.
Following closely is Shanghai, occupying the second position with 123,400 high-net-worth individuals (HNWIs), comprising 322 centi-millionaires and 39 billionaires.
The remaining trio of Chinese cities featured in the list are Shenzhen, securing the fifth position with 50,300 millionaires, Hangzhou claiming the sixth spot with 31,600, and Guangzhou rounding off the list at the ninth position with 24,500 millionaires.
Both the UAE and India secure two spots each in the esteemed Top 10 list. Dubai, living up to its moniker as the ‘City of Gold,’ claims the third position with an impressive 72,500 millionaires choosing it as their residence. Among them, 212 are centi-millionaires, and 15 are billionaires.
Abu Dhabi, another prominent city in the UAE, secures the tenth position with 22,700 resident millionaires, including 68 centi-millionaires and five billionaires.
Mumbai, a financial powerhouse in India, secures the fourth spot with 58,800 resident millionaires, among whom 236 are centi-millionaires and 29 are billionaires. Meanwhile, India’s national capital, Delhi, attains the seventh position, hosting 31,000 millionaires. This includes 123 centi-millionaires and 16 billionaires.
In the eighth position, Moscow is noted for hosting 30,300 millionaires, including 207 centi-millionaires and 23 billionaires. However, it stands out as the sole city in the top 10 with a decrease in its millionaire population over the past decade.
The Russian Federation’s capital has witnessed a notable 24 percent decline in High Net Worth Individuals (HNWIs), in contrast to the substantial private wealth growth experienced by the other leading cities in the BRICS. The rest of the wealthiest cities have enjoyed remarkable growth ranging from 75 percent in Abu Dhabi to an astounding 140 percent increase in millionaires in Shenzhen since 2013.
Cities Anticipated to Join the Prestigious List
Cities anticipated to be included in the list in the future encompass Bengaluru, presently housing around 13,200 millionaires. Projections indicate that this figure is poised to surpass 30,000 by 2033, positioning Bengaluru as one of the most rapidly expanding cities within the BRICS bloc. The forecasted wealth growth for the next decade stands at an impressive 125 percent.
Andrew Amoils, the Head of Research at New World Wealth, identifies Sharjah in the UAE, along with Saudi cities Riyadh and Jeddah, as cities poised for significant developments.
“Despite having a considerably smaller private wealth footprint compared to Dubai and Abu Dhabi, Sharjah demonstrates a slightly faster growth rate in its millionaire population, both in absolute terms and percentage growth. Currently hosting 4,100 High Net Worth Individuals (HNWIs), this number is anticipated to surge to over 9,000 by 2033, reflecting a remarkable growth of 120 percent. Similarly, both Jeddah and the Saudi capital Riyadh are expected to experience a surge in millionaires, with growth rates forecasted at 100 percent and 90 percent, respectively, over the next decade,” states Amoils.
Andrew Amoils further notes that Cape Town, often referred to as South Africa’s ‘Mother City,’ is poised for an increase in High Net Worth Individuals (HNWIs). The current population of 7,400 millionaires in Cape Town is projected to surge by 85 percent over the next decade, reaching 13,500 by 2033.
Despite the BRICS nations collectively controlling more of the world’s GDP PPP than the G7, there remains a substantial disparity in economic mobility for their citizens compared to those residing in the most advanced economies. According to the Henley Passport Power Index, passport holders from BRICS countries have access to just 21 percent of global GDP visa-free, in stark contrast to G7 nations whose citizens collectively enjoy access to over 80 percent of global GDP without requiring a prior visa.