The United Arab Emirates is attracting a significant number of millionaires, positioning itself as the top wealth magnet globally for the third consecutive year, as per the Henley Private Wealth Migration Report. In contrast, the U.K. is projected to witness a decline of 17% in its millionaire population by 2028, according to Swiss bank UBS. The movement of high-net worth individuals from the U.K. to tax-free expat hubs like Dubai is on the rise, driven by factors such as rising costs and taxes in their home country.
Karim Jetha, an investor who recently relocated from the U.K. to the UAE, highlighted various push factors contributing to this trend. These factors include the potential for higher taxes under a new Labour government in the U.K., which may lead millionaires to seek more favorable tax environments. On the other hand, Dubai’s perceived safety, along with visa reforms designed to encourage migration, serve as pull factors attracting wealthy expatriates to the UAE.
The UAE is expected to witness a significant net inflow of 6,700 millionaires by the end of 2024, a number that far exceeds other destinations like the U.S. The allure of the UAE lies in its zero income tax policy, golden visas offering long-term residency, luxurious lifestyle, and strategic location. The country’s attractive offerings have solidified its position as the preferred destination for migrating millionaires worldwide.
Sunita Singh-Dalal, a partner at Hourani Private Wealth & Family Offices in Dubai, credited the UAE’s robust regulatory framework and innovative wealth management solutions for attracting wealthy individuals. The country’s focus on developing its wealth management ecosystem has played a significant role in positioning Dubai as a premier destination for the affluent. Factors such as modern infrastructure, a strong international school system, geographical connectivity, low crime rates, and a range of investment incentives further contribute to Dubai’s appeal to the wealthy.
In stark contrast to the UAE’s trajectory, the U.K. is expected to witness a decline in its millionaire population over the coming years. The UBS Global Wealth Report forecast a decrease from 3,061,553 millionaires last year to 2,542,464 by 2028. The phasing out of the “non-dom” status in the U.K., which allowed foreign residents to avoid paying British taxes on overseas income, is likely to impact the country’s millionaire population as many individuals seek to explore more tax-efficient residency options.
The United Arab Emirates continues to solidify its position as a top destination for migrating millionaires, driven by a combination of push and pull factors that make the country an attractive haven for the affluent. Meanwhile, the U.K. faces challenges in retaining its millionaire population as changes in tax policies and residency status prompt wealthy individuals to reconsider their ties to the country. The shifting landscape of millionaire migration underscores the importance of creating environments that cater to the unique needs and preferences of high-net worth individuals on a global scale.
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