The UAE is reinforcing its status as a magnet for the super-wealthy, with thousands of millionaires migrating to the country in 2024, a wealth report will say.
The Emirates is the top place for high-net-worth individuals (HNWIs) to establish a new home, according to global analytics firm New World Wealth and investment migration advisers Henley & Partners.
The number of super-rich individuals relocating to the UAE last year significantly exceeded the 6,700 originally predicted in October, The National understands. It is almost double the projections for those moving to the US, in second place with 3,800, and third-place Singapore with 3,500. The findings will be confirmed later this year.
Leaving London
More than 950 of the millionaires relocated from the UK, also far higher than expected, New World Health said in its initial release of findings for 2024.
Tax increases in the UK, safety concerns and the “dwindling” importance of the London Stock Exchange have led to it becoming less attractive, said Andrew Amoils, head of research at New World Wealth.
“The significant increase in British [ultra-wealthy] applying for our services has materialised due to a culmination of factors," he said. "These include the Covid pandemic, political instability, the climate in the UK, the increase in crime – especially in London with phone and watch thefts, the change in government, the perceived attack on the wealthy and, of course, one of the biggest drivers, tax."
“Wealthy non-doms have been targeted with additional taxes, which has prompted many of them to leave the UK,” Mr Amoils told The National. “Capital gains tax and estate duty rates in the UK are among the highest in the world, which deters wealthy business owners and retirees from living there. These taxes also have a spillover effect on the local wealth management and family office sector, which is showing signs of decline. The healthcare system in the UK is deteriorating.
“The dwindling importance of the London Stock Exchange [LSE] is also a factor. The LSE was once the largest stock market in the world by market cap, but it now ranks 11th globally. The past two decades have been particularly poor, with a large number of delistings.”
He said that historically much of the UK’s appeal lay in its language, English, which is the first or second language of most millionaires around the world.
“Over time, this has become less relevant as the economies of the other major English-speaking countries have grown," he added. "Furthermore, there are now several other high-income markets globally where one can get by only speaking English, including the UAE."
Losing millionaires
China was projected to lose the most millionaires last year, with the UK second and India third. It comes ahead of changes to the UK tax system in April that will cause the overseas assets of current non-doms to be subjected to UK inheritance tax for the first time.
“Many fast-growing, high-income markets globally have done so with success, including the likes of Mauritius and the UAE,” Mr Amoils said. A move towards a Dubai-style healthcare system, which is largely privatised, would also be appealing, he added.
Wealth tax
The popularity of the UK for HNWIs began to wane following the 2016 Brexit referendum. Millionaires began to relocate and, after a lull during the pandemic, the number of people exiting shot up last year, when the UK experienced a summer of unrest and riots and a change in government.
Henley & Partners' head of UK operations, Stuart Wakeling, said a “perceived attack” by Prime Minister Keir Starmer’s government on the wealthy has led to an increase in people quitting the UK. He told The National a rise in thefts in London of luxury items such as watches has increased safety concerns and influenced people to leave.
If a non-dom dies, the UK-based part of their estate is subject to inheritance tax. All their overseas assets – property, trusts, cash and bank accounts held outside Britain – are not subject to UK inheritance tax. But from April 6 they will be, depending on how long they have resided in the UK.
Previously, non-doms paid a £30,000 ($36,847) annual fee to HM Revenue & Customs to protect their offshore income and gains. Mr Amoils said that if the UK were to compete with the UAE, it would need to look at scrapping capital gains tax and estate duty.
“British HNWIs are consistently telling us that they are becoming more and more disassociated with the country of their birth," he added. "They are realising that although a relocation brings about a significant change and upheaval to their lives, it is a change worth making.
“The wealthy are also becoming more and more aware that having a Plan B, or additional residence or citizenship, is vital in an ever-changing world – just in the same way as being multi-banked is a necessity, for example. Having all your eggs in one basket is risky and sometimes the grass can ultimately be greener elsewhere.”
Attracted to UAE
Philippe Amarante, head of Middle East at Henley & Partners, said the UAE’s tax-free environment, quality of life and robust financial infrastructure have been major draws.
“The UAE has been a top contender in attracting private capital and talent for quite some time,” he told The National. "However, since investment-based migration is increasingly driven by a confluence of economic, geopolitical, and domestic social factors, the UAE provides a reliable, safe, and appealing environment for high-net-worth families.
“The country's economic resilience, favourable tax policies, and world-class infrastructure, combined with its strategic location and political stability make it an ideal destination for global wealth and investment. There are multiple reasons behind the UAE’s attractiveness, such as premium real estate, investor-friendly frameworks, large industrial announcements, and a highly sought-after golden visa.”
Super-rich relocate
Last year saw a record number of millionaires (128,000) relocating globally. Before the pandemic there had been a steady increase to 110,000 but by 2023 that figure had risen to 120,000 and in 2025 numbers are predicted to rise to 135,000.
Nassef Sawiris, Egypt’s wealthiest person and a shareholder in Aston Villa football club, announced at the end of 2023 that he was moving his family office to Abu Dhabi from the UK.
The New Wealth Fund said many of the millionaires moving to the UAE are also from India, the Middle East, Russia and Africa. It said large inflows last year were from the UK and Europe, showing “its growing appeal”.
Decade of growth
For more than a decade the number of millionaires in the UAE has been accelerating alongside China and India. With golden visas and the offer of a luxury lifestyle, the UAE has continued to grow in popularity and its number of millionaires has increased by 77 per cent between 2013 and 2023.
Last month a report by Swiss banking group UBS revealed the Middle East and Africa region has attracted the most billionaire wealth globally since the Covid-19 pandemic as the uber rich sought countries offering premium health care, education, safety and ease of doing business.
UAE billionaires’ aggregate wealth rose by 39.5 per cent annually to $138.7 billion last year, with the number of billionaires growing by one to 18, UBS’s Billionaire Ambitions report found.
