As many as 1,500 millionaires have relocated from the UK to Dubai in the past 10 years while hundreds of more will relocate this year as the emirate continues to maintain its appeal as an attractive destination for high net-worth individuals, says a new report released on Wednesday.
According to the latest figures released by New World Wealth, about 250 millionaires will move from the UK to Dubai this year, becoming the third top destination to attract HNWIs from the European country.
The global wealth intelligence firm’s study covered millionaires with investable wealth of $1 million (Dh3.67 million) or more.
The Henley Private Wealth Migration Report 2023 released earlier projected that 4,500 millionaires will relocate to the UAE this year, the second highest migration after Australia.
In 2022, the Emirates attracted 5,200 high-net-worth individuals, surpassing Henley’s forecast of 4,000. It was the highest migration of HNWIs to any country in 2022.
Andrew Amoils, head of research, New World Wealth (pictured below), said possible reasons that UK millionaires are drawn to the UAE due to its diversified economy as its financial services, healthcare, oil and gas, real estate, technology, and travel and tourism are very strong sectors that are attracting foreigners.
In addition, the UAE also boasts the most competitive tax rates in the world along with Bermuda and Monaco. “The UAE has a top-class healthcare system, and many foreigners opt to be treated there. It is a safe haven as the crime rate is low and it also offers beautiful beaches,” said Amoils.
“In terms of attracting more HNWIs in future, Dubai could continue to grow its fund management and family office sector. Also, it could encourage more big hi-tech firms to base themselves in the city,” he added.
The New World Wealth said the top destination cities for migrating HNWIs that are leaving the UK in 2023 are Paris (300), Monaco (250), Dubai (250), Amsterdam (200), and Sydney (200). The above are provisional and are rounded to the nearest 50.
During the five years from 2017 to 2022, the UK lost approximately 12,500 more HNWIs than it has gained through migration and it is expected to lose another 3,200 HNWIs to migration in 2023.
The report cited the dwindling importance of the London Stock Exchange, Brexit, the deteriorating healthcare system, increasing safety concerns, especially in the big cities, very high capital gain tax and estate duty rates, and the growing dominance of the US and Asia in the global hi-tech space as major reasons that millionaires relocating to Dubai and other cities worldwide.