The United Arab Emirates has solidified its position as the top destination for wealthy expatriates, according to the Henley Private Wealth Migration Report. The UAE is expected to welcome a record net inflow of 6,700 millionaires by the end of 2024, surpassing countries such as the U.S. and attracting individuals from various regions like India, the Middle East, Russia, Africa, Britain, and Europe. The appeal of the UAE lies in factors like the zero income tax, golden visas, high standard of living, geographic location, and robust wealth management ecosystem.
The Push and Pull Factors
Many high-net-worth individuals are choosing to relocate to Dubai due to a combination of push and pull factors. With potential increases in taxes in their home countries, individuals are seeking tax-free alternatives like Dubai, which is perceived as extremely safe with visa reforms encouraging migration. The prospect of higher taxes, such as levying VAT on private school tuition, has prompted individuals to consider moving to locations like Dubai for financial benefits and a more favorable lifestyle.
The UAE’s appeal goes beyond just tax benefits, with factors such as modern infrastructure, robust international school system, geographical connectivity, low crime rates, remote worker visas, and investment incentives playing a significant role. The development and reforms in the UAE’s wealth management ecosystem have also been instrumental in attracting wealthy individuals looking to protect, preserve, and enhance their wealth in a secure environment with innovative financial solutions.
In contrast to the UAE’s growth in attracting millionaires, the U.K. is projected to see a decrease in its millionaire population by 17% by 2028. The UBS Global Wealth Report forecasts a drop from 3,061,553 millionaires to 2,542,464 in the coming years. Factors contributing to this decline include the phasing out of “non-dom” status, which allowed foreign residents to avoid paying British taxes on overseas income, leading many individuals to reconsider their U.K. residencies.
The trend of wealthy individuals relocating to the UAE while the U.K. experiences a decline in its millionaire population highlights the importance of favorable tax policies, lifestyle enhancements, and financial opportunities in attracting expatriates. As the global wealth landscape continues to evolve, countries like the UAE position themselves as competitive destinations for high-net-worth individuals seeking a secure and thriving environment for both living and wealth management.