Dubai is the Beverly Hills for wealthy Indians. You can find the answer here.

The influx of funds from wealthy Indians also helps strengthen the luxury real estate market in Dubai.

Adele Sajjan witnessed one of the greatest booms of his company as a stream of wealthy Indians buys apartments worth $250,000 in the luxury skyscrapers of Dubai built by his family.

His family home is a 26,000 square foot villa in the Emirates Hills area, often referred to as the Beverly Hills of Dubai.

“I think every other house here is an Indian house,” said the 34-year-old managing director of the Danube Group in an interview at his estate, where the marble living room is the size of a mini football field, and the garage with panoramic windows showcases more than 15 cars, from Bentley to Range Rover and Lamborghini.

The Sajans are not new wealthy individuals, but the family's growing wealth and business are now receiving significant support from funds coming from the subcontinent.

Indians make up 32 percent of the company's clients in the UAE, and they contribute to one of the biggest successes for Danube since its founding by Adel's father three decades ago in the United Arab Emirates.

For many years, China's wealth has had a significant impact on global financial flows, but Dubai is now offering one of the first clear opportunities to understand the potential influence of new millionaires and wealthy families from India abroad.

Reflecting one of the most significant financial shifts in the world, UBS estimates that last year, household wealth in India increased by 4.6 percent, while in North America and China, it decreased.

The liberal visa policies of the UAE, low taxes, and proximity make this country the most significant foreign recipient of remittances from South Asia.

The immigration firm Henley & Partners estimates that this Middle Eastern country is expected to see the highest profits from wealthy Indian investors in 2023.

As Bloomberg reported at the time, billionaire Mukesh Ambani purchased property on the beach of the Palm Jumeirah archipelago in this emirate.

Actor Vivek Oberoi has also invested in housing and real estate in the city, and his Instagram delights with photos of his Rolls Royce in Dubai.

In India, Bollywood personalities or athletes often have crowds of people standing in front of their homes in the middle of the night, trying to catch a glimpse of them, said Atul Muchala, the Managing Director of Operations in India at IQ-EQ, which provides services to Indian family offices in various countries, including Dubai.

“If they have property in Dubai or on one of the islands there, they can enjoy privacy despite the option of a short flight back to Mumbai.”

The flow of money from wealthy individuals is coming at a time when Middle Eastern governments are strengthening ties with Prime Minister Narendra Modi's administration, as they seek new global allies in addition to their long-term partnership with the United States.

Wealthy Chinese investors, who invested from Vancouver to Sydney, have suffered from the decline in stock and real estate values.

However, it is noted that India is expected to see an 80 percent increase in "centi-millionaires," whose net worth exceeds 100 million dollars, over the next few decades, which is the second largest growth in the world after Vietnam, according to estimates by Henley.

It is expected that after Dubai, the second most popular destination for wealthy Indian immigrants will be the USA, followed by Australia, Canada, and Singapore.

However, most of the new billions in India are expected to remain within its borders due to capital controls and a traditional caution regarding the outflow of savings from the homeland.

Moreover, for those who are in a hurry to get to Dubai or elsewhere, it may become increasingly difficult to withdraw money. India is already limiting the amount of money that wealthy individuals can take out of the country, allowing individuals to send only $250,000 each year.

But starting from October, these transfers are subject to a 20 percent tax, except for funds used for education and medical expenses.

At the same time, Indian tax authorities have also begun to worry that some of the money flowing out of India may be going to Dubai due to its more favorable regulatory environment, sources familiar with the matter reported.

Although India and the UAE have a mechanism for exchanging information about suspected unaccounted money, it is becoming increasingly difficult for India to obtain information from the Middle Eastern country, said a source dealing with the matter.

Despite India's insistence on obtaining information about wealthy individuals and Indian companies operating from the UAE, very little information is coming in, noted this interlocutor.

A representative from the Indian tax department did not respond to the email requesting a comment.

A representative of the UAE government stated in a statement that the Middle Eastern state adheres to international agreements regarding tax cooperation, fully complies with global standards, and closely collaborates with bilateral partners.

The UAE Golden Visa program also allows foreigners who invest significant amounts to reside in the country for 10 years.

Wealthy Indians also prefer Dubai because it provides a base with easy access to utilizing their wealth globally and the opportunity to diversify their investments, said Daksha Baxi, an expert in international tax reporting and founder of the consulting firm SRI Solutions, headquartered in Mumbai.

“The good infrastructure and the fact that Dubai offers a luxurious lifestyle is another reason why wealthy Indians are moving there,” she said.

In the case of Dubai, the funds coming from wealthy Indians also help bolster the luxury real estate market, as they arrive at a time when the inflow from affluent Russians - which increased after the Kremlin's invasion of Ukraine - is declining.

According to Henley, this year more millionaires from India will move to the Middle Eastern country than from any other country.

The Dubai brokerage company Betterhomes states that Indians are the main buyers of real estate in the city and continue to be so even as Russians have dropped out of the top three buyers due to the weakening ruble.

According to the Indian Ministry of External Affairs, there are currently about 3.5 million Indians living in the UAE.

For many, Dubai feels like a home due to decades of cultural ties with India.

Indian actor Vivek Oberoi made Dubai his second home three years ago and founded a real estate company, Bricks n Woods, in the heart of this emirate.

The business has over 300 experts working with family offices and private individuals.

Mr. Oberoi also owns a business dealing with lab-grown diamonds called Solitario and invests in startups around the world outside of India, from Dubai.

Convenient time zones, social life, and global sports make Dubai an attractive place to live for his family, he said.

“Today, during the formation of Dubai, one of the most significant contributions was made by Indians.

Vishal Goel, a Harvard-educated serial entrepreneur with interests in K-12 education and healthcare, avoided the series of lockdowns and COVID-19 measures in India by moving to Dubai.

“My wife started her company in the fintech hub DIFC, and I was able to grow my fund management business outside of India,” said Goel, managing director of the venture and private equity investment firm JV Ventures.

The company Danube, led by Rizwan Sajan, is currently aiming for a revenue of $2.5 billion this year, compared to $1.5 billion last year, contributing to the flow of Indian capital.

Three years ago, Rizvan Sajjan - Adil's father and the founder of Danube - obtained Emirati citizenship. Now Adil is in the process of obtaining his own.

“I am proud to be Indian,” said Adele. “Having said that, it’s very difficult for me to imagine how I could live in India, especially as someone who has spent my entire life here.”