The United Arab Emirates (UAE) are on track to become the world’s largest wealth magnet for the third consecutive year, according to the Henley Private Wealth Migration Report
At the same time, the number of millionaires in the United Kingdom, a major source of expatriates for the UAE, is expected to decrease by 17% by 2028, according to a UBS report.
High-net-worth individuals, often referred to as “millionaires,” are increasingly looking towards more favorable fiscal and economic countries like Dubai, amid rising costs and taxes in their home countries.
“The trend of migrating to Dubai is driven by both push and pull factors,” explained Karim Jetha, a regional investor, to CNBC. “Push factors include the prospect of higher taxes under a new Labour government in the UK. For example, one of the Labour campaign promises was to impose VAT on private school education, potentially increasing costs by 20%,” he added. “On the other hand, Dubai is perceived as extremely safe, and visa reforms encourage migration.”
According to the Henley report, the UAE is expected to attract a record net influx of 6,700 millionaires from around the world by the end of 2024, nearly double the 3,800 millionaires estimated to migrate to the United States, which ranks second.
“The UAE has become the preferred destination for migrating millionaires due to zero income tax, golden visas, a luxurious lifestyle, and strategic positioning,” the report highlights.
The UAE’s golden visa is a long-term residency permit allowing foreign nationals to live, work, or study in the country. While most millionaires migrating to the UAE come from India, the Middle East, Russia, and Africa, it is anticipated that an increasing number of Britons and Europeans will also move to the glittering desert emirate, thanks to recent reforms in the UAE’s wealth management ecosystem.
Sunita Singh-Dalal, a partner at Hourani Private Wealth & Family Offices in Dubai, states, “In less than five years, the UAE has developed a robust regulatory framework offering innovative solutions to protect, preserve, and grow wealth.”
In contrast, the United Kingdom is facing an estimated decrease in its millionaire population from 3,061,553 last year to 2,542,464 by 2028, according to the UBS Global Wealth Report. This decline is partly due to the gradual removal of the “non-dom” status, which allowed wealthy and often foreign residents to avoid UK taxes on overseas income.
“Economic and political turbulence in the UK, coupled with new political decisions, risks accelerating this migration,” commented Hannah White, director of the Institute for Government in London, in the Henley report. She also noted the impact of the 40% property taxes and the removal of the 20% VAT exemption on school fees, which will significantly increase education costs.
In conclusion, the UAE continues to attract millions of dollars from around the world, offering a favorable fiscal environment and a luxurious lifestyle, while the UK faces a significant decrease in its millionaire population due to recent economic and fiscal changes.
