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Ahmadoff & Company
Economics of Spanish BillionairesResearch Report
private capital intelligence…
This report is prepared by Ahmadoff & Company’s research team based on the studies of the Forbes billionaires.
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Economics of Spanish Billionaires > Agenda
o General comparison
o Wealth overview
o Who are the new billionaires?
o Wealth concentration among the billionaires is the highest
o Political careers of billionaires shape construction industry
o Spanish business families have unique elements
o Summary
o Authors
Economics of Spanish Billionaires research is a study of Forbes billionaires of the last two decades in Spain and covers material events and challenges of their lives in addition to the wealth. The materials used to prepare this report is intellectual property of Ahmadoff & Company.
Agenda
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Source: Forbes.com, IMF, Ahmadoff & Company analysis
General Comparison
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AV. AGE OF THE BILLIONAIRES 2010 | 2017
NUMBER OF BILLIONAIRES 2010 | 2017
BILLIONAIRE-FRIENDLY INDUSTRIES 2017
BILLIONAIRES’ WEALTH TO GDP 2009 | 2016
62 | 69 67 | 64
13 | 25 1011 | 2043
Diversified,
Real estate,
Retail
Financial
investments,
technology, retail
3.4% | 10.1% 5.5% | 10.2%
World
GDP GROWTH between 2009 and 2016 -18% 14%
Spain
Economics of Spanish Billionaires > General Comparison
Source: Forbes.com, Ahmadoff & Company analysis
Wealth overview
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Spain has seen remarkable growth with the
number of billionaires in the past two decades
both from multigenerational family businesses and
entrepreneurial wealth. The number of the
billionaires doubled after 2010 reaching a peak of
25 billionaires. Interestingly, globally rising gap
between the numbers of self-made wealthy and
inheritors in favor of entrepreneurship levels off
with equality amongst Spanish billionaires.
However, wealth levels follow the global trends
differently from the number of billionaires, where
self-made capital dominates in fact, billionaire
entrepreneurs hold 80% of ten-digit assigned
wealth in Spain. Sharp rise of entrepreneurial
wealth throughout the period from 2010 to 2015
has made a substantial impact to the overall
wealth levels of billionaires, though it has
stabilized after 2015. Average wealth per
billionaire has stood at $5.0bln in 2017 up from
$3.3bln of 2005.
Total wealth of Spanish billionaires (bln. USD)
Economics of Spanish Billionaires > Wealth Overview
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7
8
12 13
3 3 3
5
9
12
1996 2000 2005 2010 2015 2017
Number of billionaires in Spain
0
20
40
60
80
100
1996 2000 2005 2010 2015 2017
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Key characteristics of new-comer billionaires in Spain
1995 - 2010
Rise of ‘business titans’ ‘Infrastructure’ wealth
2010 - 2017
Generational capital managers
Average age62 65
Source: Forbes.com, Ahmadoff & Company analysis
Economics of Spanish Billionaires > Who are the new billionaires?
Who are the new billionaires?
79%
43%
14%
Ind
ustr
y: R
ea
l e
sta
te
So
urc
e: S
elf-m
ade
Wom
an
60%
40%33%
So
urc
e: F
am
ily b
usin
ess
Ind
ustr
y: R
ea
l e
sta
te
Wom
an
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Wealth concentration among the billionaires is the highest
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Source: Forbes.com, Ahmadoff & Company analysis
Economics of Spanish Billionaires > Wealth concentration among the billionaires is the highest
24%
38%
50%
64%
69%66%
33%
56%59%
53%50%
47%
37%
28%31%
14%
21%17%
SHARE OF THE RICHEST PERSON’S WEALTH TO TOTAL WEALTH OF THE BILLIONAIRES OF THE RESPECTIVE COUNTRY
2000 2010 2015 2016 2017
Spain Mexico Brazil
The rise of business magnate,
founder of Inditex Group, Amancio
Ortega brought an unprecedented
wealth concentration to Spain in the
last decade. Approximately, two-third
of the Spanish billionaires’ wealth is
controlled by Ortega family. In
contrast, peer countries with the
same economic size saw a gradual
decline in the share of the richest
person among the other billionaires.
Now, the private wealth of the richest
person in Spain is equal to 7% of the
GDP in the country, the situation
places Spain to the second place
after Hong Kong, where billionaire Li
Ka Shing’s capital is just above 10%
of the local economy of island-nation.
Political careers of billionaires shape construction industry
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Source: Forbes.com, Ahmadoff & Company analysis
Economics of Spanish Billionaires > Political careers of billionaires shape construction industry
Co
nstr
uction b
illio
na
ires
Billionaires from
other industries
68%12%
Former Politicians
20%
Construction is the best industry to become a billionaire after spending some time in politics in Spain. In
fact, all three Spanish billionaires with political background found themselves in love with development
projects and heading largest firms of the country.
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Number of children in rich Spanish families
Gender of billionairesFamily structure
Data shows that first marriage is
riskier than other parts of the
world, in fact 28% of Spanish
billionaires divorced and one in
five have got married second time.
Currently, 6 women billionaires are
part of the Forbes Billionaires list
and four of them had inherited
from their fathers and the rest
two from husbands.
Average number of children in
rich families is 3.3 in Spain well
above of 2.8 average children per
billionaire family globally,
according to our research.
Source: Forbes.com, Ahmadoff & Company analysis
24%10%
76%90%
Female Male
Spain
Wo
rld
4%
33%
63%
one-child family
big family (4 or more children)
small family (2 or 3 children)
28%
15%
20%
9%
divorced second marriage
Spain World
Spanish business families have unique elements
Economics of Spanish Billionaires > Spanish business families have unique elements
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Summary
Economics of Spanish Billionaires > Summary
• Both number and wealth level of the Spanish billionaires have doubled though
national GDP contracted 18% since 2009;
• Real estate remained as the main billionaire breeding industry with approximately
40% of all newcomers during the last two decades;
• Generational family business owners saw a marked growth after 2010, almost half of
the billionaires inherited large firms from their families;
• Zara’s bold expansion movement brought both economic growth and wealth inequality
to the country;
• All of the Spanish billionaires with political background sourced their wealth in
construction industry;
• Spanish family businesses trust in their woman leaders: exact half of the billionaires
from family firms are women;
• Rich families in Spain tend to have more children than other parts of the world;
• Almost three in ten billionaire families get divorced which is twice more than global
average figure for billionaires.
Authors
10Ahmadoff & Company
Fakhri Ahmadov, CIWM, TEP is managing director at the Ahmadoff & Company and the Family Office leader of the firm. He is a topic leader for private wealth history for the research. You may contact him by e-mail at fakhri@ahmadoff.com.
Nadir Bakhishov is executive director at the Ahmadoff and Head of Regional Relationship Management group. He is a senior advisor for the research report. You may contact him by e-mail at nadirb@ahmadoff.com.
Zulfiyya Valiyeva is wealth analyst at the firm’s data analysis and research unit. You may contact him by e-mail at info@ahmadoff.com.
This report has been prepared by Ahmadoff & Company for wealthy people, their heirs and families, private wealth community, including familyoffices, private shareholders and other focused stakeholders. The report contains an analysis of profiles of the richest people of the planet withspecific focus on richest people in Spain according to Forbes magazine. This material and its contents do not constitute financial or otherprofessional advice, and specific advice should be sought about your specific circumstances.
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Economics of Spanish Billionaires > Authors
https://data.worldbank.org/indicator/NY.GDP.MKTP.CDhttps://data.worldbank.org/country/Spainhttps://www.forbes.com/2010/03/09/worlds-richest-people-slim-gates-buffett-billionaires-2010-intro.html#142bec3e141a