For generations, London has been a magnet for global wealth. Its stable financial system and cosmopolitan character have made it the home of choice for high-net-worth families worldwide.
That status, however, is changing. Political upheaval, rising taxes, recent legislative changes, safety concerns and Brexit-related uncertainty have combined to push many wealthy people to look elsewhere.
The trend is striking. Reports suggest an estimated 16,500 millionaires are expected to leave the UK this year, one of the largest outflows of wealth in modern history.
Much of this wealth is not dispersing evenly across the globe. Instead, it is being channelled decisively to the Middle East, particularly here in the UAE. The shift reflects both the push factors driving people away from Britain and the pull factors attracting them to the Gulf.
The UK’s allure for the wealthy has diminished sharply in recent years. Brexit unsettled financial markets and weakened London’s role as Europe’s gateway. A shifting political landscape has added further uncertainty. With Labour taking power last year, many anticipate further tax hikes and stricter regulation to plug a black hole in the public finances, a challenge that is likely to worsen as wealthy people relocate abroad.
At the same time, rising costs of living, immigration debates and safety concerns have compounded the sense that Britain is no longer the secure or predictable base it once was.
In contrast, the Middle East has worked deliberately to present itself as a new home for global wealth. Governments have introduced long-term residency schemes such as the UAE’s golden visa and Saudi Arabia’s investor programmes, sending a clear signal that investment and innovation are welcome.
These initiatives are backed by world-class infrastructure, modern airports and expanding global connectivity.
The fiscal environment is another decisive advantage: low or zero income tax, competitive corporate structures and investor-friendly regulation. Combined with stability and sunshine, the package is too difficult for many to resist.
Here in the UAE, the arrival of HNWIs carries immediate economic benefits. Luxury real estate markets in Dubai and Abu Dhabi have surged, with record property transactions reflecting demand from families selling assets in the UK and buying homes in the Gulf.
Beyond real estate, banks, asset managers and family offices are seeing new deposits and clients, strengthening the UAE’s position as a financial centre. Professional services, schools and healthcare providers are also set to gain, as wealthy new arrivals seek high-quality education, medical care and legal support.
Importantly, these people are not simply moving their capital and their families. Many are entrepreneurs and innovators with long track records of creating wealth elsewhere. Their expertise, networks and appetite for building businesses will accelerate the region’s diversification away from oil and gas.
The Gulf has long aimed to transform itself into a hub for knowledge-based industries such as FinTech, renewable energy and artificial intelligence. The arrival of a new wave of wealth creators strengthens this transition and opens opportunities for local employment and collaboration.
There is also a geopolitical dimension. Hosting a growing concentration of global elites enhances the Middle East’s standing on the world stage. The UAE, Saudi Arabia and Qatar are increasingly shaping conversations around finance, technology and trade.
Their influence in forums such as the G20, and the hosting of Cop28 in Dubai, have reinforced the region’s profile as a place where global decisions are discussed and made. The relocation of wealth thus acts not only as an economic stimulus but also as a source of soft power.
Watch: Dubai's millionaires double as London drops down wealth list
The trend is not without challenges, though these are best seen as issues to manage rather than obstacles to success. Rising demand for housing risks driving up property prices, while growing consumption could strain supply chains still heavily reliant on imports. Congestion and pressure on infrastructure may also intensify as populations expand.
Yet governments here are already investing in new transport networks, urban development projects and housing supply. The region’s track record of ambitious planning suggests it is well-placed to manage these pressures and ensure growth remains sustainable.
This shift of wealth represents more than a reshuffling of residency patterns. It is a fundamental shift in where wealth and influence reside. For the UK, it serves as a warning about the cost of political and economic instability. For us in the Middle East, it marks a defining moment: an opportunity to continue to secure prosperity, stability and global influence for decades to come.
Chris Davies is head of financial planning at Metis, a DIFC-based wealth adviser
