The number of millionaires in Iran has exploded despite the country suffering from US sanctions and the Covid-19 pandemic.
In 2020, the number of high nets worth people (HNWI) in Iran increased by 21.6%, well above the global average of 6.3%. The collective wealth of these dollar millionaires is growing faster – 24.3%.
“Between March and July, the trading value of the Tehran stock exchange rose 625% over the same period the previous year,” said a report by consulting firm Capgemini published on Tuesday (29 June). In comparison, the S&P 500 gained more than 16% over the same period.
With sanctions restricting access to international assets, many of Iran’s wealthy and professional classes invest their money in stocks and stocks. The resulting bull market made them millionaires. According to Capgemini, there are currently 250,000 millionaires in Iran. Most of them live in Iran.
The Iranian government contributed to this millionaire boom by flooding the Tehran stock exchange with public money. It brought 1% of the National Development Fund to market last September and announced a new tranche of 25 trillion riyals (about 595.2 million US dollars) in January.
Cryptocurrencies have provided another source of funding for Iran’s new millionaires. In addition, cheap electricity in the country has created a thriving bitcoin mining community.
The craze for mining cryptocurrencies was so extreme that the government announced a four-month ban on the practice in May. The computational power required to extract cryptocurrencies consumes so much electricity that a solar eclipse occurs.
Undeterred, an Iranian bitcoin miner, who declined to be named, said the practice was “very lucrative” and that he earned more from mining bitcoins than as a lawyer. About 72% of HNWIs have invested in cryptocurrencies, according to the Capgemini World Wealth Report.
According to Capgemini’s calculations, the rapid rise in the number of millionaires makes Iran one of the 14 wealthiest countries in the world and the richest in the Middle East. Iran is now even more prosperous than its biggest rival, Saudi Arabia, which ranks 17th with 210,000 millionaires.