Dubai and the UAE: the world's center of wealth

Dubai has become the epitome of wealth, luxury, prosperity and economic development. Attracting foreign investment and home to the emerging sectors of real estate, technology, finance, healthcare and tourism, Dubai is moving closer to becoming a leading global financial center.

Wealth and wealthy people

According to the 2023 World's Richest Cities report, Dubai ranks 20th. The city is home to more than 68,000 millionaires, more than 200 hundred millionaires (with a net worth of more than $100 million) and 15 billionaires. Year after year, more and more high-net-worth and over-wealthy people are choosing to relocate and settle in Dubai. According to Henley & In the same year, 3,500 high-income people came to Dubai to resettle in the city. The appeal and attraction extends beyond Dubai, with many high net worth individuals choosing the UAE as their preferred base. In 2022, the UAE saw the highest influx of wealthy people worldwide. More than 5,200 high-income earners moved to the UAE in 2022 and by the end of 2023, another 4,500 high-income earners are expected to move to the UAE. Indian millionaires are among the high net worth individuals who are moving to Dubai. About 7,500 high-net-worth individuals left India in 2022 and according to Henley Private Wealth Migration report, another 6,500 are expected to leave in 2023. Indeed, Dubai and Singapore have become two popular destinations for wealthy Indians looking to relocate. Some of the reasons for more affluent Indians leaving the country have to do with prohibitive tax policies, complex capital withdrawal rules, etc. д. Indians make up the largest proportion of expats in Dubai, accounting for about 25%. In fact, Dubai is sometimes referred to as "India's fifth city". According to a Knight Frank report, the number of individuals with exorbitant wealth in India, that is, those with a net worth of more than 30 million, is expected to grow by 58.4% in five years, from 12,069 in 2022 to nearly 20,000 in 2027. This growth does present a great opportunity for the migration of the wealthy to Dubai and the UAE.

The attractiveness of Dubai and the UAE.

Why do Indian non-residents and non-residents from around the world choose Dubai and UAE? According to Misha Glennie, "UAE has long been one of the preferred destinations for affluent people from all over the world. The reasons are obvious: zero tax rates; highly developed infrastructure; low street crime; lots of sunshine; affordable apartments in abundance; and a growing number of cultural attractions such as the Louvre in Abu Dhabi and the Dubai International Book Festival, which sells books by some of the world's best authors. As a center for affluent individuals and businesses from all corners of the world, the opportunities for professional expansion here are significant." Dubai and the UAE do not charge personal income tax and have low corporate tax rates, which attracts high net worth individuals and entrepreneurs.

The geographical advantage of the UAE

The UAE, located at the crossroads of East and West, boasts some of the busiest airports and important ports. This unique geographical advantage attracts businesses from all over the world, making it an ideal market for international expansion. Its strategic location has also made it attractive to investors seeking access to lucrative markets on several continents.

Stability and infrastructure

Dubai and the UAE are also considered economically and politically stable, which is a critical factor in attracting wealthy individuals. The UAE, especially Dubai, has successfully transitioned from an economy entirely dependent on oil and gas to a more sustainable and diversified model. This diversification strategy has forced the country to invest in sectors such as finance, technology, logistics, green energy and others. These investments in new industries have also simplified the way for international investors and businesses to enter the region's market. Moreover, Dubai's infrastructure, high standard of living, quality education, luxury shopping, world-class medical care and diverse entertainment options make it an extremely attractive destination for people craving for a high standard of living. The UAE also has a reputation for being a safe haven for non-residents looking for security and stability.

Measures taken to attract expats

To round it all off, regulators have also proposed attractive policies to attract expats. In 2021, a significant policy was introduced to allow 100% foreign ownership of companies that were not considered strategically important; previously, only 49% ownership was allowed. The ten-year "golden visa", which was introduced in 2019, is considered a game changer. The golden visa program is designed to attract highly skilled foreign workers from various fields to the country. This long-term residency permit will allow people to live, study and work in the UAE.

The development of the financial sector.

This influx of businesses and wealthy individuals to Dubai has led to the expansion of the financial sector. The sector contributed about 10% to Dubai's GDP in 2022, according to the Dubai Statistics Center. "The wealth management that the UAE offers to private clients including high net worth individuals, super wealthy individuals or prominent business families is impressive. With access to two common law-based international financial centers (which are also home to a number of active sovereign wealth funds), various free economic zones including those regulating the ownership of virtual assets, a liberated economy facilitating independent ownership in most sectors, and a choice of where to set up family offices, the UAE certainly represents a comprehensive option for many," said Sunita Singh-Dalal, partner for private wealth and family offices at Hourani in the UAE. Dubai is now the preferred destination for hedge funds, according to a new report by the Dubai International Financial Center (DIFC) in association with Refinitiv. The DIFC has registered 54% more hedge funds in 2022 and is in talks to register another 60 funds. Dubai has more than 50 local and foreign banks, as well as many asset management companies, investment banks and other financial institutions, making it a major financial center in the Middle East and North Africa (MENA) region.