The global landscape of wealth migration is shifting, with the United Arab Emirates emerging as the top destination for high-net worth individuals seeking greener pastures. On the other hand, the United Kingdom is projected to see a decline in its millionaire population in the coming years, leading to questions about the factors driving these trends.
The UAE has positioned itself as a magnet for wealthy individuals due to its attractive attributes such as zero income tax, golden visas, luxury lifestyle, and strategic location. The prospect of higher taxes in countries like the UK is pushing millionaires to relocate to tax-free expat hubs like Dubai. The recent landslide election victory for the UK’s Labour Party has added to the momentum, with some financiers predicting an acceleration in the migration of millionaires to the UAE. The perception of Dubai as an extremely safe city and visa reforms that encourage migration are also contributing to this trend.
The Henley Private Wealth Migration Report has forecasted a record net inflow of 6,700 millionaires to the UAE by the end of 2024, making it the top destination for migrating millionaires for the third year in a row. This influx is nearly double that of the second-ranked country on the list, the US, which is expected to welcome 3,800 millionaires in the same period. The UAE’s golden visa program, along with its modern infrastructure, robust international school system, geographical connectivity, low crime rate, no income tax, remote worker visa, and investment incentives, are all contributing to its appeal as a wealth migration hub.
Reforms in the UAE’s Wealth Management Ecosystem
Sunita Singh-Dalal, a partner at Hourani Private Wealth & Family Offices in Dubai, credits the development and reforms in the UAE’s wealth management ecosystem for attracting wealthy individuals to the country. In less than five years, the UAE has established a robust regulatory framework that offers innovative solutions to protect, preserve, and enhance wealth. These factors, combined with the country’s welcoming environment, make Dubai an attractive destination for the wealthy.
On the flip side, the UK is projected to see a decline in its millionaire population by 2028, according to the UBS Global Wealth Report. Factors such as the phasing out of the “non-dom” status, which allowed wealthy foreign residents to avoid paying British taxes on overseas income, are likely to contribute to this decline. While the UK has traditionally been home to a large number of millionaires, changes in tax regulations and the political landscape are leading to a shift in migration patterns.
The wealth migration landscape is evolving, with the UAE emerging as the top destination for high-net worth individuals seeking tax-efficient and lifestyle-friendly environments. The UK, on the other hand, is experiencing a decline in its millionaire population due to changes in tax policies and regulations. The push and pull factors affecting the migration of millionaires highlight the importance of a conducive environment for wealth preservation and growth. As these trends continue to unfold, it will be interesting to see how countries adapt to attract and retain wealthy individuals in an increasingly globalized world.
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