The United Arab Emirates is becoming the top destination for millionaires looking to relocate, while the U.K. is projected to see a decline in its millionaire population. According to the Henley Private Wealth Migration Report, the UAE is expected to attract 6,700 millionaires by the end of 2024, significantly more than the U.S., which is ranked second on the list with 3,800 expected millionaires. This trend highlights the appeal of the UAE for high-net worth individuals seeking tax-free environments and economic opportunities.
The decision of millionaires to move to the UAE is influenced by both push and pull factors. Push factors include the possibility of higher taxes in their home countries, such as the U.K., while pull factors include the perceived safety of Dubai and the visa reforms that encourage migration. For example, the prospect of new taxes under a Labour government in the U.K., such as levying VAT on private school tuition, is prompting some individuals to consider relocating to Dubai.
The UAE’s ability to attract wealthy individuals is also attributed to its development and reforms in the wealth management sector. Sunita Singh-Dalal, a partner at the Hourani Private Wealth & Family Offices in Dubai, highlighted the introduction of a robust regulatory framework that offers innovative solutions to protect and enhance wealth. The country’s zero income tax, golden visas, luxury lifestyle, and strategic location are also contributing factors that make the UAE an appealing destination for migrating millionaires.
In contrast to the UAE’s rise as a wealth magnet, the U.K. is expected to see a decline in its millionaire population from 3,061,553 to 2,542,464 by 2028, according to the UBS Global Wealth Report. The phasing out of the “non-dom” status in the U.K., which allowed wealthy foreign residents to avoid British taxes on overseas income, is likely to further contribute to the migration of millionaires away from the country. Despite being home to a large number of millionaires, many of whom are foreign residents, the U.K.’s tax policies and regulatory changes are driving some individuals to seek opportunities elsewhere.
The United Arab Emirates is emerging as a top destination for millionaires seeking favorable tax environments, economic opportunities, and a high standard of living. The country’s zero income tax, golden visa program, and robust wealth management ecosystem are key factors driving the influx of wealthy individuals from around the world. Meanwhile, the U.K. is facing challenges in retaining its millionaire population due to changes in tax policies and regulatory frameworks. As the UAE continues to attract high-net worth individuals, it is expected to solidify its position as a global wealth magnet in the years to come.
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