Property investors have been given a huge confidence boost by the recent announcements regarding migration of UHNWI into the UAE.
By the end of 2024, an estimated 6,700 wealthy migrants are projected to move to the UAE, making it the top destination for millionaires for the third consecutive year. This is according to Henley and Partners’ annual Private Wealth Migration Report 2024, which highlights the UAE's significant growth in millionaire population, primarily driven by inflows from the UK and Europe.
Attractive Factors for Wealthy Individuals
The UAE’s appeal to the affluent is bolstered by its zero-income tax policy, golden visa program, and strategic geographical location. “Consistent high inflows from India, the wider Middle East region, Russia, and Africa, coupled with the expected increase in Britons and Europeans, position the UAE to attract nearly twice as many millionaires as the US, which is projected to see a net inflow of 3,800 millionaires in 2024,” the report states.
This surge in confidence in the UAE in part can be attributed to the introduction of a robust regulatory framework that provides the wealthy with a range of innovative solutions to protect, preserve, and enhance their wealth.
Unprecedented Global Wealth Migration
The Henley Private Wealth Migration Report 2024, published by Henley and Partners, offers detailed projections of net inflows and outflows of millionaires, as monitored by New World Wealth, a global wealth intelligence firm with over a decade of experience in tracking wealth migration trends.
Dominic Volek, Group Head of Private Clients at Henley and Partners, highlighted that 2024 is set to be a record-breaking year for global wealth migration. “An unprecedented 128,000 millionaires are expected to relocate worldwide this year, surpassing the previous record of 120,000 set in 2023,” he said. Volek attributed this trend to a combination of geopolitical tensions, economic uncertainty, and social upheaval, describing it as a significant indicator of a profound shift in the global landscape of wealth and power.
Benefits of Wealth Migration
Andrew Amolis, Head of Research at New World Wealth, emphasized the diverse benefits that migrating millionaires bring to their new countries. “Migrating millionaires are a vital source of foreign exchange revenue as they bring their money with them. Additionally, around 20 percent of them are entrepreneurs and company founders who may start new businesses and create local jobs. This percentage rises to over 60 percent for centi-millionaires and billionaires,” he noted.
Countries Losing Wealth
The report also outlines the countries experiencing significant outflows of millionaires. The UK is projected to lose 9,500 millionaires in 2024, second only to China, which is expected to see a net exit of 15,200 high-net-worth individuals (HNWIs). The UK’s loss is more than double the 4,200 who left last year and follows the departure of 16,500 millionaires between.
Summary
More and more of the world's wealthy are realising what the UAE and particularly Dubai has to offer and they are making strategic decisions to take advantage.
Sheikh Mohammed in his recent tweet said it best “Many around the world are betting on the UAE with their investments, talents, and their wealth. We tell them: Whoever bets on us, we will bet on them. God willing, we will continue to create the best investment environment in the world.”