Why the ultra-wealthy are flocking to new destinations

The migration of billionaires to new countries has surged since the onset of the COVID-19 pandemic, with Switzerland, the UAE, Singapore, and the United States emerging as the most sought-after destinations. This trend reflects a shift in global wealth patterns and priorities among the ultra-rich.

According to a recent report by UBS, approximately one in every 15 billionaires worldwide has relocated since 2020. Of a global total of 2,682 billionaires, this movement has brought an estimated $400 billion in capital, with the Middle East and Africa capturing the lion’s share.

One in every 15 billionaires worldwide has relocated since 2020

The report underscores that aging billionaires and growing families are increasingly prioritizing quality of life. These individuals are drawn to regions with legal frameworks that support the seamless transfer of wealth.

“The pandemic highlighted the importance of access to top-tier healthcare,” the report stated. “Meanwhile, younger families are placing greater emphasis on excellent education and safe environments.”

It also revealed a 56% rise in billionaire offspring over the past decade, reaching 6,441 children.

Factors such as geopolitical shifts also play a significant role. Singapore, for instance, has attracted an influx of affluent Chinese individuals following Beijing's regulatory clampdown on the private sector.

Younger families are placing greater emphasis on excellent education and safe environments

Similarly, global wealth hubs are actively targeting high-net-worth individuals in the UK ahead of the anticipated introduction of new tax policies under a Labour-led government.

Despite their mobility, North America remains the top investment destination for billionaires, particularly in the short to medium term.

This preference is fueled by groundbreaking technological innovations, such as generative AI and advancements in weight-loss pharmaceuticals.

Around 40% of surveyed billionaires plan to boost investments in real estate within the next 12 months. Other favored asset classes include stocks in developed markets, gold, and precious metals.

Meanwhile, about one-third prefer to hold substantial cash reserves, reflecting caution over geopolitical risks and the elevated valuations of equity markets.

The report also highlighted a remarkable increase in the global billionaire population, which has grown by more than 50% over the past decade.

Their collective wealth has skyrocketed by 121% to $14 trillion. However, since 2020, the pace of wealth creation has slowed significantly, largely due to a decline among Chinese billionaires, whose combined fortunes have contracted by 5% annually during this period.

“China's economic activity has shifted from being a major growth driver to a moderating force,” the report stated, citing the country’s efforts to implement a more equitable wealth distribution policy.

This evolving landscape reflects the changing priorities and challenges facing the world’s wealthiest individuals as they navigate an increasingly complex global environment.