The United Arab Emirates continues to solidify its position as the world’s top wealth magnet, attracting high-net worth individuals from around the globe. According to the Henley Private Wealth Migration Report, the UAE is poised to see a record net inflow of 6,700 millionaires by the end of 2024. This influx is driven by factors such as zero income tax, golden visas, luxury lifestyle, and strategic location. The UAE’s golden visa program allows foreign residents to live, work, or study in the country, making it an attractive option for wealthy individuals seeking tax benefits and a high standard of living. The report highlights that the UAE has become the go-to destination for migrating millionaires, surpassing countries like the United States in terms of net inflow.
The allure of Dubai, with its perception of safety, visa reforms, and tax-free environment, is a major pull factor for millionaires looking to relocate. Karim Jetha, a regional investor who moved from the U.K. to the UAE, points out the push and pull factors at play in this trend. While the prospect of higher taxes in the U.K., especially under a new Labour government, serves as a push factor, the attractive lifestyle and wealth management ecosystem in Dubai are strong pull factors. The UAE’s development of a robust regulatory framework and investment incentives have created a conducive environment for the wealthy to protect and enhance their wealth.
In contrast to the UAE’s prosperity, the U.K. is projected to see a decline in its millionaire population over the coming years. According to the UBS Global Wealth Report, the U.K. is expected to experience a 17% drop in its millionaire population by 2028. This decline is attributed to factors such as changing tax policies, the phasing out of the “non-dom” status, and the political landscape in the country. The U.K.’s large millionaire population, which includes many foreign residents, is facing uncertainty due to tax reforms and regulatory changes that may impact their financial standing.
The recent landslide election victory for the U.K.’s Labour Party has raised concerns among high-net worth individuals regarding potential tax hikes and fiscal policies. The prospect of new taxes, such as VAT on private school tuition, has led some millionaires to consider relocating to tax-friendly jurisdictions like Dubai. The U.K.’s shift in policies, particularly in relation to wealth management and taxation, has created uncertainty among the wealthy population, prompting them to explore alternative options for preserving their assets.
As the global landscape shifts and economic conditions evolve, the movement of millionaires between countries is likely to continue. The contrasting trajectories of the UAE and the U.K. in terms of their millionaire populations reflect the impact of political, economic, and social factors on wealth migration. While the UAE cements its position as a top destination for high-net worth individuals, the U.K. faces challenges in retaining its wealthy residents. The coming years will witness further shifts in millionaire migration patterns, influenced by tax policies, regulatory frameworks, and lifestyle considerations. Ultimately, the choices made by millionaires in terms of relocation will be shaped by a complex interplay of push and pull factors, highlighting the dynamic nature of global wealth migration.