Inheritance is now the biggest source of new b'naire wealth

B’naire heirs inherited more wealth in 2025 than in any previous year, with USD 298 bn passed on to spouses and children in the year to April, the highest figure since records began, according to UBS’ B’naire Ambitions Report 2025 (pdf). The wealth transfer also marks a 36% increase y-o-y as 91 individuals became b’naires through inheritance.

No sign of slowing down: UBS expects this trend to accelerate, with USD 5.9 tn set to exchange hands over the next 15 years. The US will account for almost half of the expected flow of capital, with Western Europe, India, and Greater China also set for strong contributions. Meanwhile, some USD 152.7 bn is expected to exchange hands in the Middle East and Africa by 2040, largely to heirs in the UAE, Saudi Arabia, Israel, and South Africa, the report estimates.

This year, the Americas saw the biggest growth in b’naire wealth, up 15.5% to USD 7.5 tn, while Asia-Pacific saw an 11.1% increase, and EMEA lagged slightly on the back of stunted growth in Europe, though still seeing b’naire wealth rise 10.4% to USD 4.1 tn.

Yes, but: B’naires — especially younger ones — are increasingly mobile, with an exodus expected from traditional wealth hubs like Switzerland, which harbors an estimated USD 206 bn set for transfer, on the back of a possible 50% levy on inheritances above USD 62 mn. The UK has also been seeing a significant number of high-net-worth individuals leave their home country for more tax-friendly alternatives.

The UAE, Singapore, and the US are now among preferred destinations for wealthy individuals, 36% of whom relocated recently, with quality of life, taxation, and geopolitical climate cited as key decision factors, the report said.

Self-made wealth is also on the rise, with some 196 new self-made b’naires emerging this year — the highest since 2021 — with growth led by US tech, China consumer sectors, and Asia crypto or software.

Total b'naire net worth reached USD 15.8 tn, up around 13% y-o-y, with new b’naires adding USD 137.2 bn, outpacing existing b’naires who have increased their wealth.

Sector leaders and laggards are diverging: While tech b’naire wealth rose 23.8% to USD 3 tn, industrials grew faster, up 27.1% to USD 1.7 tn, supported by SpaceX valuation gains and EV supply chains. Consumer or luxury showed 5.3% growth, as the European market cooled and Chinese mass brands captured share.

Where are b’naires investing their money next year? Some 42% plan to increase allocations to EM equities, while 35% are looking towards infrastructure, 49% are eyeing direct private equity, and 32% are set to invest more in gold or precious metals. North America remains the top return market (63%) but half of those surveyed see Asia-Pacific and Greater China as becoming the most attractive destinations.

MARKETS THIS MORNING-

It’s a mixed bag across Asian markets this morning, with Japan’s Nikkei and Hong Kong’s Hang Seng in the red, while South Korea’s Kospi gained 0.5%, and China’s CSI 300 flat at the open. Over on Wall Street, futures are marginally down as investors await inflation data that could give them more clues about the US Federal Reserve’s interest rate decision next week.

THE CLOSING BELL-

The DFM rose 0.4% yesterday on turnover of AED 666 mn. The index is up 14.9% YTD.

In the green: Chimera S&P UAE UCITS ETF - Share Class A - Accumulating (+8.6%), DFM (+6.3%) and Emirates REIT (CEIC) (+4.0%).

In the red: Gulf Navigation Holding (-10.0%), Ithmaar Holding (-7.0%) and Al Firdous Holding (-6.1%).

Over on the ADX, the index rose 0.4% on turnover of AED 1.4 bn. Meanwhile, Nasdaq Dubai was up 0.9%.