BRICS bloc worth USD 45 trillion

BRICS bloc worth USD 45 trillion

BRICS is challenging the global economic order dominated by the North and West as we know it. According to the Henley and Partners BRICS Wealth Report; following the addition of other member states into the bloc, the global South is now a force to be recon with valued at USD 45 trillion.

With the inclusion of the Middle East and North Africa (MENA) members Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE into the BRICS bloc, the bloc now boasts more than 45% of the world’s population and accounts for 36% of global GDP, which is larger than that of G7 which accounts for 30% when adjusting for purchasing power parity (PPP).

The report reveals that, the millionaire population within BRICS is expected to grow by 85% over 10 years. The bloc current has 1.6 millionaires with investable assets of over USD 1 million in the grouping of the world’s leading emerging economies, including 4,716 centi-millionaires or ‘centis’ (with more than USD 100 million in investable assets) and 549 billionaires.

 “The inclusion of MENA countries 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. For investors worldwide, MENA’s growing participation 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,” said CEO of Henley & Partners, Dr. Juerg Steffen in the report.

According to the report, in the last decade, private wealth grew by a remarkable 92% in China, which is now home to 862,400 millionaires, including 2,352 centi-millionaires and 305 billionaires. India follows in 2nd place in the BRICS HNWI ranking, with 326,400 millionaires, including over 1,000 centis and 120 billionaires, and wealth growth soaring by 85% over the past 10 years. The UAE’s millionaire population has also shot up since 2013, by 77%, and the Middle East’s leading wealth hub is now home to 116,500 millionaires, including over 300 centis. The past decade has also seen robust private wealth growth in Saudi Arabia and Ethiopia, with their millionaire populations rising by 35% and 30%, respectively.

The report notes that although the rest of the BRICS cohort have seen a decline in their millionaire populations since 2013, ranging from a drop of 20% in South Africa, now home to 37,400 millionaires, and a 38% drop in Iran, where 11,900 HNWIs reside today, there is still significant private wealth to be found within the borders of these Global South nations. Brazil is home to 82,400 millionaires — a 28% decline since 2013, Russia has 68,400 resident HNWIs — 24% less than in 2013, and 15,600 US-dollar millionaires live in Egypt, 22% down on its 2013 HNWI population.

The wealth growth forecast for BRICS member states over 10 years is projected as follows: India leads the BRICS pack with a forecast 110% increase in wealth per capita by 2033. Saudi Arabia is runner up with its wealth per capita expected to expand by over 105% in the next 10 years, followed closely by the UAE on 95%. China (85%), Ethiopia (75%), South Africa (60%), and Egypt (55%) are all forecast to enjoy wealth growth of over 50% in the next decade.

The report shows the top 10 wealthiest BRICS countries as follows:            

China lays claim to five of the Top 10 wealthiest cities in the grouping, with its capital Beijing securing top honors as the wealthiest BRICS city, home to 125,600 millionaires, including 347 centi-millionaires and 42 billionaires. Hot on its heels is Shanghai with 123,400 resident HNWIs, of whom 322 are centis and 39 are billionaires. The other three Chinese cities making it into the Top 10 are Shenzhen (5th with 50,300 millionaires), Hangzhou (6th with 31,600), and Guangzhou (9th with 24,500).

The UAE and India each have two cities in the Top 10. Dubai is in 3rd place, living up to its reputation as the ‘City of Gold’ with 72,500 millionaires making it their home, of whom 212 are centi-millionaires and 15 are billionaires, and Abu Dhabi sits in 10th place with 22,700 resident millionaires (including 68 centis and 5 billionaires). Mumbai, India’s largest megacity and de-facto financial center, comes 4th with 58,800 resident millionaires (236 centis and 29 billionaires among them) and its national capital Delhi ranks 7th (home to 31,000 millionaires, including 123 centis and 16 billionaires) ahead of Moscow in 8th place (30,300 millionaires, with 207 centis and 23 billionaires).

The Russian Federation’s capital is the only Top 10 city with a declining millionaire population over the past decade. Moscow saw a 24% drop in HNWIs while the rest of the wealthiest cities in BRICS have all enjoyed significant private wealth growth of between 75% (Abu Dhabi) and — in the case of Shenzhen — an astonishing 140% more millionaires than in 2013.

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