Abu Dhabi is booming as a residential destination. Victor Besa / The National
Abu Dhabi is booming as a residential destination. Victor Besa / The National
Abu Dhabi is booming as a residential destination. Victor Besa / The National
Abu Dhabi is booming as a residential destination. Victor Besa / The National

Why Abu Dhabi is becoming more attractive for millionaire investors


Nick Webster
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Millionaire investors are looking towards Abu Dhabi for long-term investments, according to data that shows the capital is home to the highest number of luxury properties on sale in the UAE.

Analysis by real estate developers Bloom Holding found the highest property price growth between 2020 and 2025 was in Abu Dhabi, with the capital having 352 homes for sale valued above $1 million.

Abu Dhabi recorded year-on-year growth of 202 per cent in the last five years, with 8,490 properties on sale increasing in value.

Low taxes and substantial sovereign wealth, along with high living standards, were listed as significant factors in attracting ultra-high-net-worth individuals to choose Abu Dhabi for long-term property investments.

A bright future

Asad Khan, chief executive of Invest Dubai Real Estate, said Abu Dhabi is becoming a more attractive option for investors.

“With all the government bodies based there, as well as sectors like technology, healthcare, finance and renewable energy all setting up, the bigger players are coming into Abu Dhabi,” he said.

“There's a lot of investment coming into the area, not only from the government but also from the private sector.

“I feel that the future is very, very strong in terms that the entry price is a lot lower in Abu Dhabi – even within the luxury market.”

Asad Khan, CEO of Invest Dubai Real Estate, says Abu Dhabi is the place to be. Photo: Supplied
Asad Khan, CEO of Invest Dubai Real Estate, says Abu Dhabi is the place to be. Photo: Supplied

“Abu Dhabi is getting more people coming into that space only because, the entry price is a lot lower,” said Mr Khan.

“You're getting a lot more for your money, both on the commercial side and also on the residential side.”

One UAE resident looking to invest in Abu Dhabi is Kevin Goodall, who lives in Dubai with his wife and four sons.

Mr Goodall sold his IT business last February and moved to Dubai to rent a family villa in Arabian Ranches in August. He has already purchased off-plan in a luxury development in Dubai, but is now looking towards Abu Dhabi for opportunities.

“I will probably be looking to invest around Yas Island or anywhere near where Disneyland is being proposed,” he said.

“Investing in Abu Dhabi is more of a diversification tactic. Obviously it is very different to Dubai, and they've both got very different appeal.

“There are a lot of attractions there like the F1, theme parks and Disney which is definitely appealing. Investing there is more a strategic tactic.”

Population growth

In a decade, Abu Dhabi’s population has grown 51 per cent, rising from 2.7 million in 2014 to over 4.1 million in 2024.

In the first three months of 2025, total real estate transactions in Abu Dhabi grew by 34.5 per cent compared with the same period in 2024, climbing from Dh18.82 billion to Dh25.3 billion.

Figures from the Abu Dhabi Real Estate Centre showed the number of property deals made in that quarter increased from 5,773 to 6,896.

Mortgage transactions also recorded strong growth in Abu Dhabi, reaching Dh9.8 billion through 3,077 transactions – a 49 per cent year-on-year increase.

“Abu Dhabi Vision 2030 is a comprehensive long-term plan that aims to transform the emirate into a diversified, sustainable, and globally integrated economy,” said Arun Bose, director of the International Real Estate & Investment Show that takes place in Abu Dhabi in September.

“At the heart of this vision is real estate development, which plays a pivotal role in shaping the future of urban living, economic growth, and social infrastructure.

“The strategy focuses on creating vibrant, liveable communities supported by smart infrastructure, green spaces, and world-class amenities.

“With investments pouring into mixed-use developments, waterfront districts, cultural hubs, and high-tech business zones, Abu Dhabi is positioning itself as a real estate powerhouse in the region.”

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Transmission: eight-speed automatic

Power: 582bhp (542bhp in GTS model)

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Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: July 23, 2025, 5:37 AM