Today’s world is highly competitive. Like any competition, there are always those at the top and those below them. There is no area of life that this does not apply to, and the subject of money is no exception. The top tier can be seen in the world’s wealthiest countries. Whether through natural resources, calculated investment strategies, or just good luck, these countries have been able to acquire staggering amounts of wealth and influence.
For anyone curious, here is a look at the richest countries in the world and what has made them formidable contenders in terms of finances.
What Is a Rich Country?
Before taking a look at the list of richest countries in the world, it is important to establish what ‘rich’ actually means in this context. Generally speaking, a rich country is one with a large Gross Domestic Product (GDP) per capita. This figure is determined by the total value of a country’s goods and services over a period of time divided by the total population. It is usually expressed at purchasing-power parity (PPP), which takes into account differences in cost of living.
When looking at countries, the most commonly cited measure of wealth is the human development index (HDI). The HDI includes measures such as life expectancy, education, standards of living, and quality of life. This provides a more holistic measure of a country’s financial success than just GDP. Though HDI and GDP have a positive correlation, there are exceptions.
The Richest Countries By GDP Per Capita
Below is a list of the ten countries with the highest GDP per capita, adjusted for PPP, in 2020.
- Qatar $130,726
- Macao $114,432
- Luxembourg $106,709
- Singapore $90,531
- Ireland $80,495
- Brunei $77,285
- Switzerland $76,954
- Hong Kong $68,747
- United Arab Emirates $67,196
- Norway $65,081
Qatar
At the top of the list is Qatar. This oil- and gas-rich country has the highest GDP per capita in the world. With few natural resources other than oil, it has heavily invested in a thriving real estate sector and modernized its public transportation system.
Thanks to its vast reserves of natural gas, Qatar is the world’s leading exporter of liquefied natural gas (LNG). The country has also made significant investments in tourism and business, as well as hosting international events such as the 2022 FIFA World Cup.
Macao
Located in South China, Macao is a semi-autonomous Chinese territory and one of the world’s fastest-growing wealth hubs. It is home to some of the highest GDP per capita figures in the world, thanks to its world-renowned casinos and vibrant tourist trade.
As an economy heavily reliant upon the gaming industry, Macao is not only incredibly wealthy but also incredibly specialized. According to the IMF, the city’s gaming sector accounts for 75 percent of all its economic output.
Luxembourg
The Grand Duchy of Luxembourg is a small European country known for having one of the highest per-capita incomes in the world. Luxembourg’s success is largely due to its partnership in Pan-European business organizations. As a founding member of the European Union and home to multinational major banks and the European Investment Bank, the country attracts a high amount of foreign direct investment.
It has also become one of the world’s leading countries when it comes to investment banking, with some of the world’s largest banks, such as Bank of America, having offices in Luxembourg City.
Singapore
Arguably the most successful economy in Southeast Asia and one of the world’s most industrialized nations, Singapore is a top economic performer with the fourth highest GDP per capita.
The city-state has benefited from prudent economic policies and sound fiscal management. It is one of the most reputable financial and banking centers in the world, has a successful manufacturing sector, and has also become a major hub for technology companies. Its major trading partners include Malaysia, the United States, and China.
Ireland
One of Europe’s frontrunners in terms of growth and wealth, Ireland has experienced a dramatic improvement in its financial fortunes in the past two decades. Its key strength lies in its commitment to innovation, with tech startups and financial services dominating its economy. It has particularly benefited from the rise of the financial sector and the international endowment of the country’s educated workforce.
Brunei
The tiny Southeast Asian Sultanate of Brunei is a wealthy state sitting on a large oil and gas deposit. According to the most recent GDP figures, the country has the sixth highest GDP per capita in the world.
Oil and natural gas account for 75 percent of its exports and make up much of its national income. The Sultanate also boasts one of the lowest tax regimes in the world and a currency heavily pegged to the US dollar.
Switzerland
Switzerland’s impressive ranking is partly due to its reputation as a respected banking center and a low-tax haven for wealthy investors. The country’s long-standing neutrality and its renowned banking secrecy have attracted large-scale foreign investments and turned Switzerland into one of the most wealthy countries in the world.
Switzerland is also a major hub for global trade and investment, with the European Union, US, and the rest of Europe being important trading partners. This economic success has been facilitated by an extremely efficient and well-educated workforce, as well as a thriving energy and small business sector.
Hong Kong
As one of the “Four Asian Tigers” (along with Singapore, South Korea, and Taiwan) Hong Kong is one of the wealthiest cities in the world. Success is largely attributed to its high-powered economy and efficient government regulations.
With more than 7 million people calling it home, Hong Kong is the world’s busiest trading port and financial hub, a leader in banking, tourism and international trade. A major political and business center in the Far East, the city is known for its impressive skyline, a high quality of life, and excellent practices of freedom.
United Arab Emirates
The United Arab Emirates is an influential and powerful financial center in the Middle East. Its principal cities of Dubai, Abu Dhabi and Sharjah are major trading and banking hotspots for investors from all over the world. The country is known for its low taxes and liberal economy, as well as its strategic location as a major hub for business and transport.
The UAE has some of the world’s richest and most powerful individuals, and with its oil reserves, the country is set to maintain its financial clout for years to come.
Norway
The Kingdom of Norway is the only Nordic nation to make this top 10 list and the tenth wealthiest country in the world. The country’s wealth and high standard of living comes from its oil and gas reserves, with the country having the world’s highest per capita production of oil and natural gas outside of the Middle East.
Aside from its huge natural energy reserves, Norway also excels in technology, shipping, fishing and other industries. Thanks to its impressive infrastructure and success in the financial sector, Norway remains a top-tier industrialized nation.
When it comes to the wealthiest countries in the world, Qatar, Macao, Luxembourg, Singapore, Ireland, Brunei, Switzerland, Hong Kong, the United Arab Emirates, and Norway are undoubtedly some of the biggest players. From oil and gas to banking and tourism, these countries have achieved a sustained level of success for a variety of reasons.
They all demonstrate the power of hard work, ambition, and smart investing, as well as the potential of what a country can achieve when it puts its resources to use in a beneficial manner. Ultimately, these countries can provide examples of what other nations strive for, both in terms of wealth and quality of life.
