A new report claims that the UAE could attract around 4,500 millionaires in 2023. The country is the second most popular place that millionaires move to. That's according to Henley & Partners.
The migration consultancy company noted that the UAE’s numbers have gone up a little since 2022. It saw a record-breaking 4,000 millionaires migrating to the country last year. The impressive numbers aren’t enough to dethrone Australia though. The country expects to welcome more than 5,000 high-net-worth individuals this year.
Andrew Amoils of New World Wealth said the inflow of 4,500 millionaires to the UAE is the highest on record. The researcher said the country used to see an inflow of about a thousand millionaires per year. That was before the pandemic. It has ballooned to massive proportions.
Amolis also noted that many of the incoming millionaires will be coming from India and the UK. There will be thousands coming from Russia, Lebanon, Pakistan, and Turkey. The UAE can also expect wealthy families coming from Egypt, South Africa, and Nigeria. Many millionaires from China and Hong Kong are also set to move to the Emirates.
There are many reasons why the UAE has been attracting such illustrious individuals. 2022 showed that the country’s low tax regime was a key attraction. So was the country’s claim to having the fastest vaccination rates in the world. Dubai playing host to the World Expo post-pandemic strengthened its place as a wealth hub.
Many of the ultra-wealthy families also liked the UAE’s immigration policies. The Emirates developed these policies to draw in private wealth. They also made it very attractive to international talents.
Amolis believes many millionaires are now attracted to the UAE because it's a haven. The country also has a very diversified economy and low tax rates. Its healthcare system is first-class. It’s a luxurious luxury hub with top-class restaurants and shopping. The UAE also boasts of a robust residential property market. It has many good international schools. People can enjoy leisure activities all year round.
Juerg Steffen of Henley & Partners said the UAE is like Singapore and Switzerland. The three countries have built reputations as being safe havens for good living. But they’re also known for preserving wealth as well.
He said these countries made themselves known as attractive business hubs. They’re where companies can thrive due to helpful financial jurisdictions. The corporate tax rates in these countries are favorable. They also have zero inheritance and wealth taxes.
Journalist Misha Glenny noted the same benefits fueled Russian immigration. He added that the developed infrastructure and low levels of street crime are big draws. The country also has a lot of sunny days. There are also many affordable apartments.
The UAE has also molded itself into becoming a cultural hub. It has developed many cultural attractions. The Louvre in Abu Dhabi is a big draw. So is the Dubai International Book Festival. The event draws in many of the world’s best-selling authors.
Millionaire Exits
Glenny noted that affluent Russians have started moving to Israel and the UAE. They’ve done so to escape the effects of the sanctions the West has imposed on Russia. Glenny said there was already a noticeable pattern to the migration. And this happened in before Russia invaded Ukraine.
Glenny noted that a veritable tidal wave of capital left Russia. This was way before the sanctions on the country’s banking system. The movement was due to President Vladimir Putin’s erratic style of governance. Many middle-class and rich Russians also became wary of Putin’s demands for loyalty from them.
Steffen said the migration of high-net-worth individuals has been a rising trend. Especially over the past ten years. But the influx slowed down in 2020 and 2021 because of the coronavirus pandemic.
He also noted in the 2023 report that figures for this year and the next could hit 122,000 and 128,000. It mentioned the 2023 forecast showed more notable exits of millionaires are happening.
Where Do Multi-Millionaires Go?
Australia is at the top of the millionaire migration list this year. About 5,200 millionaires are calling the sunny continent their home. That’s a big leap from the 3,800 affluent individuals in 2022.
The UAE comes a close second. Singapore holds third place in this prestigious list. The small island country has attracted a startling 3,200 millionaires in 2023. That’s a respectable increase from last year’s 2,900.
One question many people ask is where these moneyed individuals come from. A vast number of them are leaving China. The Asian superpower could lose as many as 13,500 millionaires this year. India is also seeing an exodus of tycoons. Around 6,500 millionaires would be leaving the country by year’s end.
The United Kingdom will also be dealing with its exodus. Studies pegged that around 3,200 millionaires will leave the country this year. That’s double the outflow of 2022. The economic ecosystem post-Brexit is pushing people out. So is the government policy change that removed the fixed non-domiciled tax status.
Prof. Trevor Williams said Brexit has made the UK less welcoming to millionaires. They now have a harder time moving between the UK and other EU countries. There’s also evidence that shows the UK’s inward investment into Europe has dropped. It started when the country left the EU. Now Germany and France are benefiting from this gap.