Over the past decade, a significant number of 1,500 millionaires have made the move from the UK to Dubai, with hundreds more anticipated to relocate this year. The emirate continues to sustain its allure as an attractive destination for high-net-worth individuals, as highlighted in a recent report released on Wednesday.
According to the most recent data from New World Wealth, approximately 250 millionaires are expected to transition from the UK to Dubai in 2023, positioning the emirate as the third top destination attracting High Net Worth Individuals (HNWIs) from the European country. The study conducted by the global wealth intelligence firm focused on individuals with investable wealth of $1 million (approximately Dh3.67 million) or more.
The Henley Private Wealth Migration Report 2023, released earlier, projected that 4,500 millionaires would choose the UAE as their destination this year, marking the second-highest migration after Australia. In 2022, the Emirates experienced an influx of 5,200 high-net-worth individuals, surpassing Henley’s forecast of 4,000, making it the highest migration of HNWIs to any country in 2022.
Andrew Amoils, Head of Research at New World Wealth, pointed out potential reasons why UK millionaires are attracted to the UAE, citing its diversified economy. The UAE's robust sectors, including financial services, healthcare, oil and gas, real estate, technology, and travel and tourism, are particularly appealing to foreigners. Additionally, the UAE boasts the most competitive tax rates globally, alongside Bermuda and Monaco. Amoils highlighted the UAE's top-class healthcare system, safety (with a low crime rate), and scenic beaches as contributing factors to its appeal.
Looking ahead, Amoils suggested that Dubai could further enhance its attractiveness to HNWIs by fostering growth in the fund management and family office sectors. Encouraging more significant hi-tech firms to establish themselves in the city could also contribute to this appeal.
The New World Wealth report identified the top destination cities for migrating HNWIs leaving the UK in 2023 as Paris (300), Monaco (250), Dubai (250), Amsterdam (200), and Sydney (200). These figures are provisional and rounded to the nearest 50. Over the five years from 2017 to 2022, the UK experienced a net loss of approximately 12,500 HNWIs through migration, with an anticipated additional loss of 3,200 HNWIs in 2023. The report cited various factors contributing to this trend, including the diminishing importance of the London Stock Exchange, Brexit, a deteriorating healthcare system, increasing safety concerns in large cities, very high capital gain tax and estate duty rates, and the growing dominance of the US and Asia in the global hi-tech sector.