Six billionaires saw fortunes rise from $17.6 bln to $19.9 bln
Cyprus had six billionaires last year, one less than in 2017, but their combined wealth rose from $17.6 bln to 19.9 bln, beating the worldwide trend, according to the latest UBS and PwC Billionaires Insights report.
Four of the six ‘Cypriot’ billionaires were self-made, with the other two gaining their wealth from inheritance, the UBS/PwC report said.
Although names were not available, the richest Cypriot is Norwegian-born oil tanker and shipping magnate John Fredriksen, whose fortune was estimated by Forbes in 2018 as being $7.4 bln (EUR 6.72 bln).
That places his twin daughters, Kathrine and Cecillie, in the richest inheritance category, benefitting from the zerotax in this segment in Cyprus, ever since the 75-year-old opted to take up Cypriot citizenship in 2006.
According to the 2010 edition of the Greek Rich List, compiled in cooperation with the Financial Mirror, Fredriksen’s family fortune at the time was estimated at EUR 2.7 bln, which has more than doubled in a decade.
His fortune has risen much faster than the 17.8% growth of the billionaires’ wealth recorded by UBS/PwC in the past 15 years, and the 9.1% increase in the market performance of the MSCI AC World Index.
Several Cypriot billionaires, either born on the island or of Cypriot families, have opted for dual citizenship, hence their taxable fortunes are recorded in other jurisdictions. Many are included in the annual Sunday Times Rich List.
For example, Sir Stelios Haji-Ioannou, owner of the ‘easy’ low-cost empire and founder of easyJet, is estimated by Forbes to have a wealth of $1.57 bln (EUR 1.43 bln), but his residence is Monaco, while his shipowner brother Polys’ fortune is estimated at $1.46 bln (EUR 1.33 bln). He, too, is a Cypriot but with residency in Monaco.
Their sister, Clelia, has a fortune of $1.35 bln (EUR 1.23 bln) and like her siblings is a Cypriot with residency in Monaco.
The UBS/PwC report, The Billionaire Effect, also found that “more broadly, billionaires’ wealth dipped by $388 bln in 2018, following five years of growth.
“Asia’s billionaires saw a correction following five years of significant growth, during which their wealth almost quadrupled.
By contrast, the Americas saw a slight wealth increase this year, led by prominent US tech billionaires. Despite slowing growth last year, billionaire wealth is over a third higher (34.5%) than five years earlier, amounting to an increase of $2.2 trln,” the USB/PwC report said.
It added that the strong dollar and volatile equity markets saw billionaire wealth decrease to $8.5 trln after five years of growth.
“Tech billionaires saw their wealth increase more than any other sector last year, fuelled by existing businesses and disruptive new market entrants. The number of female billionaires has grown by 46% in five years.”
“The billionaire boom of the past five years has now undergone a natural correction. The stronger dollar, combined with greater uncertainty in equity markets amidst a tough geopolitical environment, has created the conditions for this dip,” explained Josef Stadler, Head of Ultra High Net Worth at UBS Global Wealth Management.
“Nevertheless, it’s clear that billionaire businesses continue to thrive. Billionaires are creating and steering businesses that consistently outperform equity markets. This business acumen has also translated into their philanthropy, as billionaires seek new ways to engineer far-reaching environmental and social change. This ‘Billionaire Effect’ is alive and well across the world – and shows little sign of slowing,” he added.
The study shows that over two-thirds of billionaires in emerging markets Saudi Arabia and the UAE, as well as in the more established countries Poland and Cyprus, are selfmade, said Ali Janoudi, Head Central and Eastern Europe, the Middle East and Africa at UBS Global Wealth Management.
“This highlights just how much economic opportunity and entrepreneurial drive we can find in these regions.”