Share

Many wealthy entrepreneurs plan to move

Johannesburg - Just under a third (29%) of the world’s wealthy entrepreneurs are planning to move to a different country within the next five years, according to the latest report in the Barclays Wealth Insights series.

This means that wealthy entrepreneurs are twice as likely as global high net worth individuals (HNWIs) to relocate - 15% of whom are planning to move to a different country in the next five years.

The report is based on a global survey of more than 2 000 HNWIs comprising entrepreneurs, business leaders and investors.

The Barclays Wealth Insights provides an in-depth study into the rise of the high net worth global citizen. The report navigates the global landscape of wealth, examining where individuals today live, work, retire and give their time and money.

The greatest wanderlust

The report shows that it is HNWIs in emerging markets and entrepreneurs who are most likely to be planning a move in the next five years, as globalisation, technological advances and political and economic uncertainty in certain regions have led to an opening up of markets and an increase in mobility among the world’s wealthy.

Across global markets, nearly half (47%) of HNWIs in China and a third in Qatar (36%) and Latin America (34%) are considering a move.

While this figure stands at just 10% in South Africa, it is those in Japan, the US and Switzerland who are most likely to remain where they are, with only 7% in Japan, 6% in the US and 4% in Switzerland considering relocating.

While the Chinese and Qatari wealthy are the most driven by better educational and employment opportunities for their children (78% and 39% say this respectively), those in Latin America are looking to move to have better economic security (29%).  

For wealthy entrepreneurs currently planning a move, 41% are looking to move for economic opportunity, 29% are doing so to start a new business and 27% to pursue an international career, showing that high net worth business owners are increasingly looking to other markets for growth.

An open map

In terms of migration patterns and wealth flows, North America and Europe could see the biggest influxes of global HNWIs.

However, regions such as Asia Pacific are also seeing over one in 10 (11%) HNWIs from Europe and one in 20 (6%) of those in North America looking to move there in the next five years, showing the shift of wealth hot spots from West to East.

The top overall reasons for considering a move among global HNWIs include having a more desirable climate (35%), economic security (25%) and looking to retire in another region (24%).

The report shows that, while just under half (43%) of global HNWIs have lived in more than one country, there are some marked regional differences.

Those in India, Hong Kong and the US are the least likely to have lived abroad – 98% of HNWIs in India have only ever lived in one country, compared to 71% in Hong Kong and 69% in the US –  while those in burgeoning economies have moved around much more.

Almost a third (30%) of HNWIs in South Africa have lived in three or more countries, while this figure rises to 41% for wealthy individuals in the UAE and 65% for HNWIs in Monaco.

“Although our high net worth individuals in South Africa are highly mobile in terms of the number of countries they have lived in, not many are planning to leave the country when compared to other emerging economies," said Nomkhita Nqweni, chief executive of wealth and investment management at Barclays Africa.

"This could be an indication of the loyalty that HNWIs have to the country, which is positive. This trend should also be seen in the context of a strong link to ongoing economic and wealth creation opportunities in South Africa and the fact that SA is strongly integrated to the global economy."

However, the trend for the next generation of HNWIs could be somewhat different as they are set to become global citizens. This has implications for SA's wealth business going forward as one has to understand these patterns and how they impact business.

The next generation of global citizens

While today’s HNWIs are living increasingly global lifestyles, spending more time in different countries, it is their offspring that could ascend to become a truly multinational generation.

The majority of HNWIs expect their children to live in more countries than they have done and this belief is especially prevalent in South Africa, where 78% of wealthy individuals hold this belief, as well as emerging economies such as India (91% of HNWIs believe this) and China (90%).

 (Supplied)

- Fin24

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.9%
Rand - Pound
24.10
-0.9%
Rand - Euro
20.59
-0.7%
Rand - Aus dollar
12.42
-0.9%
Rand - Yen
0.13
-0.8%
Platinum
915.75
-0.8%
Palladium
1,028.36
-3.5%
Gold
2,159.96
+0.2%
Silver
25.03
-0.6%
Brent Crude
85.34
-0.1%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders