The United Arab Emirates has been recognized as the world’s top wealth magnet for the third consecutive year, as reported by the Henley Private Wealth Migration Report. This trend is expected to continue, with a projected net inflow of 6,700 millionaires by the end of 2024. The appeal of the UAE lies in its zero income tax policy, golden visas, luxury lifestyle, and strategic location. The country has become a hub for high-net worth individuals seeking tax-free expat hubs like Dubai, as costs and taxes continue to rise in their home countries.
One of the significant factors driving millionaires to relocate to Dubai is the promise of favorable tax conditions compared to their home countries. For example, the prospect of higher taxes under a new government in the U.K. has prompted numerous individuals to seek residency in the UAE. Additionally, Dubai’s reputation for safety, along with visa reforms designed to encourage migration, has made it an attractive destination for the wealthy. The golden visa program, which grants long-term residency in the UAE, has further incentivized high-net worth individuals to move to the country.
The development and reforms in the wealth management ecosystem of the UAE have played a crucial role in attracting millionaires from around the world. The country has implemented a robust regulatory framework that offers innovative solutions for protecting, preserving, and enhancing wealth. Factors such as modern infrastructure, a strong international school system, geographical connectivity, low crime rates, and various investment incentives have made Dubai a preferred choice for wealthy individuals looking to relocate.
In contrast to the UAE’s thriving wealth migration trend, the U.K. is expected to witness a decline in its millionaire population by 17% by 2028, according to the UBS Global Wealth Report. The phasing out of the “non-dom” status, which allowed foreign residents to avoid British taxes on overseas income, has contributed to this decline. While the U.K. currently has the third-highest millionaire population globally, the impending changes in tax policies and residency regulations are likely to drive many wealthy individuals away.
The ongoing trend of millionaires relocating to the UAE and the projected decline in the U.K.’s millionaire population highlight the shifting landscape of global wealth distribution. As high-net worth individuals continue to seek favorable tax conditions, safe environments, and investment opportunities, countries like the UAE are positioned to attract a growing number of affluent residents. The competition among nations to appeal to wealthy migrants underscores the importance of economic policies, regulatory frameworks, and incentives in shaping migration patterns in the years to come.