A record 6,700 millionaires are expected to relocate to the UAE by the end of this year, solidifying the Emirates as the leading destination for high-net-worth individuals (HNWIs). This finding comes from a survey by Henley & Partners, an international investment migration advisory firm.
Luxury Lifestyle and Favorable Policies
The UAE’s zero income tax, golden visas, and luxury lifestyle have been major draws, securing its position as the world’s wealth magnet for the third consecutive year. The country is set to attract nearly twice as many millionaires as its closest competitor, the US, which is forecast to see 3,800 millionaires settle there by the end of 2024.
Rapid Growth and Development
The Henley Private Wealth Migration Report 2024 highlights Dubai’s rapid rise and growing popularity among the super-rich. Rosy Khalastchy, director at high-end property company Beauchamp Estates, notes the significant migration of wealthy African families from countries like Nigeria and South Africa to Dubai and London. She contrasts the historical growth of cities like London, Manhattan, Paris, and Berlin over 200 years with Dubai’s remarkable development in just 20 years.
Attraction of Luxury Homes
Peter Wetherell, founder and executive chairman of Wetherell, a prime London estate agent, points out that many wealthy clients now prefer key locations like Dubai, London, Mumbai, the South of France, and either Los Angeles or Miami for owning luxury homes. Dubai has replaced traditional choices like Paris for pied-a-terre properties.
Global Wealth Migration Trends
Dominic Volek, group head of private clients at Henley & Partners, remarks on the unprecedented global movement of wealth, with 128,000 millionaires expected to relocate worldwide this year, surpassing the previous record of 120,000 set in 2023. This trend, driven by geopolitical tensions, economic uncertainty, and social upheaval, signals a significant shift in the global landscape of wealth and power.
Winners and Losers in Wealth Migration
The report identifies winners and losers in the global migration of millionaires. China tops the list of countries losing millionaires, with 15,200 expected to leave this year. The UK follows, with a projected outflow of 9,500 millionaires, more than double the 4,200 that left last year. Dr. Hannah White, chief executive of the Institute for Government in London, attributes this to low economic growth, political instability, and uncertain tax policies.
India is expected to lose 4,300 millionaires, while South Korea’s outflow is projected to rise from 800 in 2023 to 1,200 in 2024.
Benefits of Wealth Migration
Andrew Amoils, head of research at New World Wealth, emphasizes the significant benefits wealth-attracting countries gain. Migrating millionaires bring substantial forex revenue and entrepreneurial potential, with around 20% starting new businesses and creating local jobs. This percentage rises to over 60% for centi-millionaires and billionaires.
The UAE’s strategic policies and attractive living conditions have positioned it as the premier destination for millionaires in 2024. As global wealth continues to move, the implications for both the countries losing and gaining these high-net-worth individuals will be profound and far-reaching.
