The influx of wealthy individuals from across the globe to Dubai is experiencing unprecedented growth, particularly from Western countries. This surge is attributed to the absence of personal income taxes and the luxurious lifestyle options that are difficult to find in their home nations, as reported by various sources.
While Dubai remains a favored destination for affluent individuals from neighboring regions, migration experts and wealth service providers highlight a notable rise in arrivals from Western countries.
According to Henley & Partners, a firm specializing in residency and citizenship matters, the UAE is anticipated to attract a record 9,800 millionaires this year, the highest figure of any country worldwide.
Overall, the UAE is solidifying its status as a strong magnet for the wealthy due to its political and economic stability, low crime rates, flexible business environment, and ease of access to a luxurious lifestyle. The “Golden Visa” system, which offers long-term residency for up to 10 years, is a significant draw for high-skilled professionals and those with considerable wealth.
Dubai, in particular, has transformed into a preferred haven for influencers and enthusiasts of luxury living, housing one of the world’s largest shopping centers which features a ski slope, the tallest skyscraper globally, and the lavish Palm Jumeirah island filled with luxury hotels.
The demographic of those relocating to Dubai is diverse, including professionals in their 30s and 40s, tech startup founders, business heirs, advisors, and investment fund managers.
Among the new residents is a 42-year-old founder of a cloud software company who relocated from the UK due to concerns over potential taxes on the profits from his company’s sale. The UK has become a significant source of millionaires leaving for other nations.
Changes in UK tax policies, particularly related to the non-domicile status, have accelerated this outflow. Henley & Partners predicts that the UK could lose a record 16,500 millionaires this year.
One of the most notable departures is billionaire John Fredriksen, who expressed in Norwegian media his decision to move to the UAE, stating, “Britain has gone to hell.”
In a podcast titled “Building Wealth Without Borders,” Max Maxwell, CEO of Padko Real Estate, discussed his relocation from the United States to Dubai, sharing, “We’re all looking for a certain lifestyle. In the UAE, I found that my family could enjoy a better life for almost the same costs.”
Philippe Amarante from Henley & Partners in Dubai confirms that wealthy individuals are keen to preserve their fortunes and lifestyle while operating in a low-bureaucracy environment. The UAE has clearly communicated its message: “We are open for business.”
Faisal Durrani, head of Middle East research at Knight Frank, points out that the new trend sees wealthy individuals bringing not only their families but also their businesses and private offices to Dubai.
As of now, Dubai ranks among the cities with the highest concentration of millionaires, boasting 81,200 affluent individuals along with 20 billionaires, according to Henley & Partners. When it comes to the luxury property market, Dubai has outperformed both New York and London combined by selling 435 properties exceeding $10 million last year.
Durrani believes that luxury properties in the UAE remain more reasonably priced compared to their counterparts in the West.
He concluded, “In Monaco or Switzerland, a client might seek a $100 million apartment. In Dubai, that amount could purchase an entire building.”