The UAE, particularly Dubai, has become a magnet for millionaires.
Despite its small size compared to other global UHNWI hubs such as New York and London, Dubai has recorded an 18% increase in high-net-worth individuals. With over 67,000 millionaires already residing in Dubai, the city is set to welcome a new era of mega-wealth, with the number of centi-millionaires expected to increase by 52% over the next decade.
Big banks like HSBC have expanded their private banking businesses in the UAE to cater to this growing number of high-net-worth investors.
By the end of 2024, approximately 128,000 millionaires are expected to migrate globally, with the UAE and the USA emerging as top destinations. In the Middle East, Dubai ranks as the top city for UHNWI wealth, followed by Tel Aviv, Israel. According to a study by New World Wealth and Henley & Partners, the number of HNWIs in the UAE is expected to rise from 163,000 in 2021 to over 228,000 by 2026, marking a 39% increase.
Whatever measure is taken, the world's wealthy are moving to Dubai, bringing not just an influx of wealth, but also talent and numerous other benefits to these countries.
Economic Benefits of UHNWI migration to Dubai
- Stock market investments: Millionaires enhance local stock markets through equity investments and by publicly listing their companies.
- Job creation: UHNWIs indirectly create thousands of well-paying jobs through their spending, particularly in luxury sectors such as hotels, fine dining, retail, fashion, hi-tech, automotive, prime property, wealth management, and family offices. In fact, around 20% of high-net-worth individuals are entrepreneurs who often start businesses in their new country, creating local jobs. This figure rises to over 60% for centi-millionaires and billionaires.
Economic health indicator
Millionaire migration is a key indicator of an economy’s health. A country losing large numbers of millionaires likely faces serious issues, and this outflow can signal future economic challenges, as wealthy individuals are often the first to leave.
As the UAE leadership is keen to maintain the country's growth and global standing, it is expected to continue to actively attract and retain UHNWI residents.
Why the world's wealthy move to Dubai
Common reasons for relocation to Dubai include:
- Safety and security: The UAE's low crime rate sees the country consistently ranked as one of the safest places in the world.
- Financial stability: A USD-pegged currency and strong government focus on diverse growth
- Tax advantages: Residents and companies pay less tax in Dubai than most other major cities in the world
- Work and business opportunities: Increasingly a major commercial and travel hub, Dubai's diverse economy presents wide-ranging trade and business opportunities
- Lifestyle factors: A warm climate, year-round and luxury amenities add to the appeal to UHNWIs
- Educational opportunities for children: The number of International Schools in Dubai continues to grow year on year
- Quality healthcare systems: UHNWIs can choose from 52 hospitals, 77 specialised clinics, 58 one-day surgery centres, 82 dental clinics and 122 clinics in Dubai
Golden Visa: A gateway to long-term residency
The UAE’s Golden Visa program is a significant draw for high-net-worth individuals. This long-term residency visa allows foreign talents to live, work, or study in the UAE for up to 10 years, with the possibility of renewal. Key benefits of the Golden Visa include:
- No need for a sponsor: Visa holders do not require a local sponsor.
- Extended stay flexibility: Visa holders can stay outside the UAE for more than six months without losing their residency status.
- Family sponsorship: Visa holders can sponsor their family members, including spouses and children, regardless of their ages.
- Domestic helpers: Visa holders can sponsor an unlimited number of domestic helpers.
- Security for families: In the event of the primary visa holder’s death, family members can stay in the UAE until the end of their permit duration.
Investors can obtain a Golden Visa by investing at least AED 2 million (approximately USD 545,000) in property. This visa not only facilitates extended stays but also provides access to world-class healthcare and education, and the ability to open international bank accounts.
Sustained demand for Dubai's luxury villas
High-net-worth individuals and ultra-high-net-worth individuals are increasingly seeking luxury villas and there is currently a shortage of new super-luxury villas ready for purchase in Dubai. Indeed the wait time for new listings can be up to 3 years. This demand gives individual sellers holding premium villas a significant advantage, as they can upgrade and customise their properties to sell to the highest bidder.
Experienced property investors have recognised the immense value in building customised luxury villas in Dubai. While large developers are constructing decent luxury villas, they often lack uniqueness, which today’s UHNWIs demand.
Dubai's UHNWIs and property investment
The migration of millionaires to the UAE is set to bring substantial economic benefits, from forex revenue to job creation. This trend highlights the attractiveness of the UAE as a top destination for high-net-worth individuals seeking stability, opportunity, a high quality of life – and a property portfolio.
