The United Arab Emirates is on track to maintain its position as the world’s leading destination for high-net-worth individuals seeking to relocate. The recent Henley Private Wealth Migration Report indicates that the UAE is attracting a record number of millionaires, with a projected net inflow of 6,700 millionaires by the end of 2024. This trend is in stark contrast to the U.K.’s millionaire population, which is expected to decline by 17% by 2028.
Push and Pull Factors
The allure of the UAE for expatriates lies in both push and pull factors. On one hand, individuals are increasingly looking to leave their home countries due to rising costs and taxes. The prospect of higher taxes under a new government, such as the case in the U.K., is a major motivating factor for millionaires to relocate to tax-friendly destinations like Dubai. On the other hand, the pull factors for Dubai include its reputation for safety, visa reforms that encourage migration, and a luxurious lifestyle.
The UAE’s golden visa program, which offers long-term residence permits to foreign residents, has been a key driver in attracting wealthy individuals to the country. Additionally, the development of a robust wealth management ecosystem in the UAE has provided high-net-worth individuals with innovative solutions to protect and grow their wealth. This, coupled with factors like modern infrastructure, a strong international school system, geographical connectivity, low crime rates, no income tax, and various investment incentives, make Dubai an attractive destination for the wealthy.
In contrast to the UAE’s thriving expat community, the U.K. is witnessing a decline in its millionaire population. The UBS Global Wealth Report projects a decrease in the number of millionaires in the U.K. from 3,061,553 to 2,542,464 by 2028. This decline is attributed to factors such as changes in tax regulations and the phasing out of the “non-dom” status, which allowed wealthy residents to avoid paying taxes on overseas income.
As the landscape of global wealth migration continues to evolve, it is clear that the UAE is emerging as a frontrunner in attracting high-net-worth individuals from around the world. With its tax-friendly policies, luxurious lifestyle, and strategic location, Dubai is positioning itself as a top destination for millionaires seeking to relocate. Meanwhile, the U.K. will need to reconsider its policies and incentives to retain its wealthy residents in the face of increasing competition from expat hubs like the UAE.