Some of the world’s youngest billionaires are all well below the age of 25, one among the youngest being Clemente Del Vecchio, who is heir to the Luxottica eyewear empire. The likes of Vecchio, Livia Voight (19 years old), Johannes von Baumbach (19 years old) and several others, represent a new generation of ultra-wealthy individuals who have reached financial milestones at a young age.
Globally, teenagers and young adults are increasingly accumulating seven, eight, and even nine-figure fortunes through a combination of inheritance, entrepreneurship, and digital innovation.
According to a recent study, almost 24 million millionaires live in the US today, representing 39.7 per cent of the world’s population, according to UBS & Credit Suisse’s latest Global Wealth Report. While the majority of millionaires are older, a small percentage of millionaires are 40 or younger, which indicates that wealth accumulation is beginning earlier for some individuals.
However, the billionaire statistics reveal a more concentrated conclusion. Most of the young billionaires in the world have inherited their wealth, with the world’s youngest billionaire, 19-year-old Livia Voight, still a university student. The Brazilian teenager is worth around $1.1 billion as a result of her minority stake in the electrical company WEG, co-founded by her late grandfather.
The landscape presents itself to be more nuanced than pure inheritance, several self-made young entrepreneurs have also made their mark, particularly in the technology and digital commerce sectors, where barriers to entry are dramatically lower than in the past.
Beyond family wealth, there exists a new generation of teenage entrepreneurs who are building and scaling businesses from scratch.
In the UAE, AlDhabi AlMheiri has made her mark at the age of 10 as the youngest entrepreneur in the country. She founded Rainbow Chimney, a publishing and storytelling platform for children.
AlMheiri holds two Guinness World Records as the youngest person to write a bilingual book and create a bilingual book series. She also holds the title of the youngest Emirati entrepreneur and publisher.
“Ten years ago, the conversation was dominated by the US and Western Europe. Now, Dubai, Riyadh, Singapore, and Lagos are producing young wealth at a pace. The GCC’s combination of investor-friendly policy, access to capital, and global connectivity is making it a fixture in global wealth creation, not just an opportunistic hub,” Mike Coady, Dubai-based financial expert, said in an exclusive interview with Arabian Business.
These success stories are examples that reflect a broader trend where young entrepreneurs are identifying problems and building solutions, leveraged by technology with minimum initial capital and maximum digital leverage.
“The headline doesn’t tell the whole story. In the GCC for example, I see two very different paths to that label: first-generation builders who have scaled a business in record time, and high-income heirs whose net worth is effectively an extension of the family balance sheet. Both get counted in the statistics, but they are living two very different financial realities,” Coady explained.
The inheritance factor
While entrepreneurial success is often publicised, the reality of young billionaires is dominated by inheritance. The data reveals a clear correlation between young billionaires and the likelihood of inherited wealth.
“Globally, most billionaires under 30 inherit their wealth. Millionaires are more mixed, but in the GCC even “self-made” often starts with family backing, whether that’s capital, introductions, or access to established supply chains. That doesn’t diminish the achievement, but it does mean the runway is shorter and the climb is steeper for those without that safety net,” Coady explained.
In 2019, one of the most widespread controversies was Kylie Jenner being declared as the youngest self-made billionaire at the age of 21 by Forbes.
The controversy caused a social media frenzy, and the internet stormed with comments questioning the authenticity of the claim, with many debating the ‘self-made’ billionaire title, attributing it to family wealth and the backing of the famous Kardashian-Jenner name.
The title was later reversed through an intricate investigation process and clarified by the publication.
“Kylie’s business is significantly smaller and less profitable than the family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe,” the article said.
The trend of younger billionaires and inherited wealth is accelerating due to demographic and economic factors. Over a quarter of wealthy individuals are expected to pass on their fortunes in the next decade, creating what some economists refer to as the ‘Great Wealth Transfer‘.
The size of intergenerational wealth transfers varies significantly by region, with different patterns emerging in different markets.
However, perceptions about inherited wealth do not necessarily match the reality for millionaires on a wider scale. According to research by Ramsey Solutions, 74 per cent of millennials believe that millionaires inherited their money, and more than half (52 per cent) of baby boomers believe in the same thing.
On the other hand, their study of millionaires contradicts this perception. The research shows that only 21 per cent of millionaires received any inheritance at all.
Digital innovation and new wealth plans
The digital economy has created unprecedented opportunities for young wealth creation. Traditional barriers that once prevented teenagers from having large businesses through access to capital, distribution channels, or manufacturing capabilities have all been significantly reduced by digital platforms and services.
14-year-old Gabby Goodwin considers herself a problem solver. By inventing a double-snap barette and calling it GaBBY Bows, she solved a long-standing problem faced by most parents of young kids – disappearing hair barettes. The product is sold online and in select retail and beauty supply stores, a testament to how e-commerce platforms enable young entrepreneurs to reach markets that would have been impossible to access in previous generations.
The beauty and lifestyle sectors have been a particularly strong ground for young entrepreneurs. Rising youth startup leaders have not only achieved financial success but also contributed to the inspiration of millions of youths worldwide.
The distribution of young wealth varies significantly across different regions and markets. While the US and Europe dominate the number of young billionaires, emerging markets are producing increasing numbers of young millionaires and entrepreneurs.
It is projected that global wealth will increase by 39 per cent over the next five years, reaching $583 trillion by 2025. Additionally, the population of millionaires is anticipated to grow by 50 per cent, totalling 84 million people.
This growth suggests that opportunities for wealth creation will continue expanding, potentially creating more pathways for young individuals to achieve significant financial success.
The Middle East region presents particular opportunities for young wealth creation, given the combination of family business traditions, increasing digital adoption, and government initiatives supporting entrepreneurship and innovation.
The rise of teenage millionaires and billionaires comes with critical controversy, where there is rising concern of growing wealth inequality and the question of whether such concentrated wealth among the young represents healthy economic development or problematic concentration of resources.
Billionaire wealth surges by $2 trillion in 2023, three times faster than the year before, while the number of people living in poverty has barely changed since 1990, according to Oxfam International. This disparity raises questions about the broader implications of extreme wealth concentration, particularly when it involves individuals who have not yet reached legal adulthood.
There are also concerns about the sustainability and impact of wealth acquired at such young ages. Managing significant financial resources requires a sophisticated understanding of investments, tax implications, legal responsibilities, and social obligations, which are skills that may not fully develop until later in life.
Several trends suggest that the phenomenon of young wealth will continue to grow. First, the ongoing digital transformation creates new opportunities for young entrepreneurs who are native to digital platforms and technologies.
“The fastest wealth often comes from the new industries, e-commerce, crypto, gaming, AI, and content creation but the most enduring fortunes, especially in the GCC, are still built on property, energy, logistics, and large-scale infrastructure. The most sophisticated young entrepreneurs here are finding ways to fuse the two, for example using AI-driven platforms to transform real estate, or blockchain solutions for supply chain and trade,” Coady said.
Moreover, the Great Wealth Transfer will continue producing young inheritors over the next several decades.
Changing cultural attitudes toward age and business leadership also means young entrepreneurs face fewer barriers to accessing capital, partnerships, and market opportunities. Venture capital firms and angel investors increasingly recognise that age may be less important than innovation, market understanding, and execution capability.
The development of new technologies such as artificial intelligence, blockchain, virtual reality, and biotechnology creates additional opportunities for young entrepreneurs who can master these technologies before they become mainstream.
“The money they stand to inherit may give them the ability to pursue these alternative strategies, which generally require a high minimum investment and are limited to qualified investors,” said Sarah Norman, head of Merrill and Bank of America Private Bank’s Chief Investment Office (CIO) Sustainable Investing Thought Leadership.
The rise of creator economies, where individuals can monetise content, skills, and personal brands through digital platforms, provides additional pathways for young people to build substantial income streams and wealth. Platforms like YouTube, TikTok, Instagram, and specialised marketplaces enable young entrepreneurs to reach global audiences and build businesses around their interests and skills.
The success of teenage millionaires and billionaires depends not only on wealth creation but also on wealth management and preservation. Young individuals with significant financial resources face unique challenges that require specialised support and guidance.
“I also see fragility. Fast wealth can be wiped out just as fast, one bad market cycle, one overleveraged deal, or one liquidity freeze and it’s gone. The young millionaires who will still be on the list in 20 years are already doing the unglamorous work: structuring, diversifying, and thinking long-term,” Coady cautioned.
Financial education becomes crucial for young wealth holders, who must understand complex investment strategies, tax implications, legal responsibilities, and risk management.
Many successful young entrepreneurs and inheritors work with teams of financial advisors, lawyers, and business mentors to navigate these challenges.
The psychological and social aspects of managing wealth at a young age also require attention. Experts believe that maintaining personal relationships, pursuing education and personal development, and developing a sense of purpose beyond financial success are important factors in long-term well-being and success.
The rise of young millionaires and billionaires represents a fundamental shift in how wealth is created, inherited, and managed in the modern economy. While inheritance remains the primary path to billionaire status for the youngest wealth holders, entrepreneurship is creating new opportunities for young individuals to build substantial fortunes.
“The speed of wealth creation has changed completely. Digital businesses, global investor access, and the ability to reach a global market instantly mean you can go from concept to sale in a few years. Add borderless e-commerce, global funding networks, and social media influence, and the barriers that slowed previous generations are gone,” Coady concluded.
