The United Arab Emirates (UAE) is on track to attract more new millionaires than any other country in 2024, according to the Henley Private Wealth Migration Report. With an anticipated influx of 6,700 wealthy individuals by the end of the year, the UAE’s combination of favorable policies, prime location, and luxurious lifestyle continues to draw high-net-worth individuals (HNWIs) from around the globe.
A Global Magnet for Wealth
The UAE’s ability to attract foreign millionaires is unmatched, largely due to its strategic initiatives, including the highly sought-after Golden Visa program and the absence of income tax. These factors, along with the country’s luxurious lifestyle offerings, have made it a top destination for millionaires from the United Kingdom, India, and Africa. The Henley report highlights that this year will mark the third consecutive year in which the UAE leads the world in attracting millionaire migrants, solidifying its position as a premier global wealth hub.
Key Factors Driving Influx
The UAE’s appeal to wealthy migrants is multifaceted. The introduction of the Golden Visa, which offers long-term residency to investors, entrepreneurs, and specialized talents, has been a game-changer. Coupled with the zero-income tax policy, the UAE presents an irresistible proposition for those looking to maximize their wealth while enjoying a high standard of living. Additionally, the country’s strategic location, serving as a gateway between the East and West, and its robust infrastructure make it an ideal base for global business operations.
The Henley Private Wealth Migration Report 2024, developed by Henley & Partners, also emphasizes the UAE’s role in global wealth management. “The evolution and development of the UAE’s wealth management ecosystem is unprecedented,” says Sunita Singh-Dalal, Partner at Hourani in Dubai. “In less than five 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.”
Comparative Global Wealth Migration
As the UAE anticipates a record net inflow of 6,700 millionaires, it far outpaces its closest competitor, the United States, which is expected to see a net gain of 3,800 millionaires in 2024. Singapore ranks third with a projected inflow of 3,500 millionaires, followed by Canada and Australia with 3,200 and 2,500 respectively.
These trends reflect a broader global movement of wealth, with countries like Italy, Switzerland, Greece, Portugal, and Japan also seeing significant increases in millionaire migrations. However, not all countries are benefitting from this trend. The UK is expected to experience a significant net loss of 9,500 millionaires in 2024, marking a sharp reversal from its historical status as a magnet for global wealth.
The Impact of Wealth Migration
The migration of wealthy individuals has profound implications for the countries involved. As Andrew Amoils, Head of Research at New World Wealth, points out, migrating millionaires often bring substantial foreign exchange revenue with them, along with the potential to create new businesses and jobs. “Around 20 percent of these individuals are entrepreneurs and company founders who may start new businesses in their new countries, a figure that rises to over 60 percent for centi-millionaires and billionaires,” Amoils notes.
As 2024 progresses, the UAE continues to solidify its status as the world’s top destination for high-net-worth individuals, driven by strategic policies, tax advantages, and an attractive lifestyle. The country’s ability to attract such significant wealth inflows not only enhances its global standing but also sets the stage for further economic growth and diversification. As the global migration of wealth reaches new heights, the UAE’s role as a premier destination for the world’s wealthy appears more secure than ever.