The United Arab Emirates has been named the top destination for wealthy individuals seeking to relocate for the third consecutive year. The Henley Private Wealth Migration Report predicts a record number of 6,700 millionaires moving to the UAE by the end of 2024. The appeal of the UAE lies in its zero income tax policy, luxurious lifestyle, golden visa program, and strategic location. These factors, combined with the rich cultural experience and diverse population, make the UAE a desirable choice for high-net-worth individuals from around the world.
The Shift in the U.K.’s Millionaire Population
In stark contrast, the U.K. is expected to see a significant decline in its millionaire population by 2028. According to Swiss bank UBS, the U.K. is projected to lose 17% of its millionaire population in the coming years. The reasons behind this decline can be attributed to the potential increase in taxes under a new Labour government and the phasing out of the “non-dom” status, which allowed foreign residents to avoid paying British taxes on overseas income. These factors have prompted many wealthy individuals to consider relocating to countries with more favorable tax policies, such as the UAE.
One of the main pull factors drawing millionaires to Dubai is the perception of safety and security that the city offers. In addition, visa reforms in the UAE have made it easier for foreigners to migrate and establish a long-term residence in the country. The modern infrastructure, robust international school system, geographical connectivity, low crime rates, and a range of investment incentives further contribute to Dubai’s appeal as a wealth management hub for high-net-worth individuals.
Sunita Singh-Dalal, a partner at the Hourani Private Wealth & Family Offices in Dubai, attributes much of the UAE’s success in attracting wealthy expatriates to the development and reforms in the country’s wealth management ecosystem. Over the past five years, the UAE has introduced a comprehensive regulatory framework that offers innovative solutions to protect, preserve, and enhance the wealth of its residents. These initiatives have created a conducive environment for wealth accumulation and investment in the UAE.
While the UAE continues to solidify its position as a global destination for migrating millionaires, the U.K. faces challenges in retaining its wealthy population. As tax policies evolve and geopolitical landscapes shift, wealthy individuals are increasingly considering their options and exploring opportunities in countries that offer more favorable conditions for wealth accumulation. The disparity in millionaire populations between the UAE and the U.K. highlights the changing dynamics of global wealth migration and the importance of creating an attractive environment for high-net-worth individuals.