WEB DESK: The United Arab Emirates (UAE) is on track to maintain its status as the world’s premier destination for high-net-worth individuals (HNWIs) for the third consecutive year.
According to the Henley Private Wealth Migration Report 2024, a staggering 6,700 millionaires are expected to relocate to the UAE by the end of the year.
This unprecedented influx is significantly driven by substantial inflows from the UK and Europe, highlighting the UAE’s growing appeal among global elites.
Zero Income Tax and Golden Visas Boost UAE’s Appeal
Key factors contributing to the UAE’s allure include its zero-income tax policy, the availability of golden visas, a luxurious lifestyle, and a strategic geographic location. These elements have solidified the UAE’s reputation as the top destination for migrating millionaires.
Furthermore, the UAE is anticipated to attract nearly double the number of millionaires compared to its closest competitor, the United States, which is projected to see a net inflow of 3,800 millionaires in 2024.
Sunita Singh-Dalal, Partner leading the Private Wealth & Family Offices at Hourani in Dubai, highlighted the UAE’s remarkable growth in the wealth management sector. “The evolution and development of the UAE’s wealth management ecosystem is unprecedented. In less than 5 years, the UAE has introduced a robust regulatory framework that provides the wealthy with a range of innovative solutions to protect, preserve, and enhance their wealth,” Singh-Dalal stated.
UK and China Face Major Wealth Exodus
Conversely, the UK is expected to witness a dramatic net loss of 9,500 millionaires in 2024, more than double the 4,200 who left the country last year. China is projected to continue being the largest exporter of millionaires globally, with an anticipated net exit of 15,200 HNWIs this year.
Dominic Volek, Group Head of Private Clients at Henley & Partners, remarked on the significance of these trends. “2024 is shaping up to be a watershed moment in the global migration of wealth.
An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023. As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty, and social upheaval, millionaires are voting with their feet in record numbers.”
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Singapore, Canada, and Australia are Among the Top Destinations
Singapore is set to secure the third spot for millionaire inflows with 3,500 expected arrivals, followed by Canada with 3,200, and Australia with 2,500.
The migration of wealth and talent to these countries brings significant benefits, including increased foreign exchange revenue, job creation, and economic growth as many relocating HNWIs start new businesses.
Investment Migration Sector Experiences Boom
The surge in millionaire migration is also driving a boom in the investment migration sector. Henley & Partners has reported record levels of inquiries about residence and citizenship by investment programs over the past 12 months from nearly 200 different countries. The top two nationalities driving this demand are Americans and Indians, with Brits, Filipinos, and South Africans also among the top ten.
As the UAE continues to attract a growing number of millionaires, the country’s economy and global standing are set to benefit significantly from this influx of wealth and talent.
