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

2

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