beyondbrics

Thinking of moving abroad? If accumulating wealth is your goal, Russia, Singapore and the Gulf states should top your list, according to a new global survey of expatriates.

Foreigners living in Russia, Saudi Arabia, Bahrain, the United Arab Emirates and Singapore have the greatest overall wealth, defined as earning higher salaries, having more disposable income and owning more luxury items, HSBC Offshore’s Expat Explorer survey found. The low end of the totem pole is dominated by the UK and Europe, reflecting the stark difference in recovery between developed and developing economies.

The report compares the financial picture for expats around the world by examining income, spending, saving and investment patterns and the impact of the state of the global economy on their lives and livelihoods. The study, which HSBC bills as the largest global expat survey, involved more than 4,000 people working in 39 industries in more than 100 countries.

So how do different countries stack up? Russia boasts the wealthiest expats, with more than a third (36 per cent) earning more than a quarter of a million dollars, followed by Singapore with 32 per cent and Bermuda with 27 per cent. Worldwide, 13 per cent of expats earn more than $250,000.

Meanwhile, expats in Europe are the lowest earners, with 62 per cent of those in Spain making less than $60,000, 47 per cent in both France and the Netherlands, and 45 per cent in Germany. HSBC attributes this increase over the global average of 26 per cent to “the high number of expats who choose mainland Europe as a retirement destination.”

What’s more, the study says, “With Asia and the Middle East also weathering the financial storm particularly well compared to countries in the eurozone, it is not a surprise that a greater number of expats will have sought out these safer hotspots to progress their careers and be rewarded with higher salaries.”

The growing wealth gap between the west and emerging markets is also evident in Brazil, India and China, which, along with Russia, HSBC highlights as “promising expat hotspots”.

“The Bric economies have fared well over the last year and as a result we’ve seen that these expat locations are particularly strong when it comes to expat finances,” said Lisa Wood, HSBC Offshore’s head of customer propositions.

Expats living in the Brics are more likely to earn higher salaries and have better job prospects. While 63 per cent of expats worldwide report earning more in their host countries than in their countries of origin, 82 per cent do so in Russia, 75 per cent in China, 70 per cent in India and 69 per cent in Brazil.

Similarly, 64 per cent of all expats say they have increased career opportunities in their host countries, while 82 per cent do so in Russia and 70 per cent in both India and China. (Brazil is in this instance an exception, falling slightly below the global average of 64 per cent.)

(click chart to enlarge)

Expats in Bric countries are also more likely to save and invest more than the global average, as this chart illustrates.

And in emerging markets – where the recession sparked by the global crisis was shorter and recoveries have been more robust – expatriates have sunnier views of their host countries’ economies.

Twenty-seven per cent of expats in Russia, half of those in India and a 61 per cent in China said the economy in their host country had improved over the last year, compared with 22 per cent of all expats. And just 9 per cent in China and 16 per cent in India felt the local economy had deteriorated, far fewer than the 47 per cent of expats worldwide who reported deterioration.

Unsurprisingly, negative views of the local economy are held by 93 per cent of expats in Spain, 67 per cent in the UK and 60 per cent in France.

Time to start checking executive search listings in Moscow.