The United Arab Emirates is quickly becoming the world’s most attractive destination for millionaires, setting the stage for an unprecedented influx of wealth in 2024. 

As the UAE prepares to welcome a record number of high-net-worth individuals, the United Kingdom faces a significant exodus of its wealthy residents, reshaping the global landscape of wealth distribution.

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• UAE is set to welcome 6,700 new millionaires in 2024, leading global wealth migration.

• The UK is projected to lose 17% of its millionaire population by 2028.

• The UAE’s tax-free living and luxury lifestyle contrast with rising costs and taxes in the UK.

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Tax-Free Paradise: Why the UAE Attracts Millionaires?

The Henley Private Wealth Migration Report paints a striking picture: the UAE is projected to attract a net inflow of 6,700 millionaires by the end of 2024, nearly doubling the figures of its closest competitor, the United States, which expects to welcome 3,800 millionaires in the same period. 

This trend marks the UAE’s third consecutive year as the world’s top wealth magnet, solidifying its position as a premier destination for the global elite.

Meanwhile, across the globe, the United Kingdom is experiencing a dramatic shift in its millionaire population. 

Swiss bank UBS forecasts a 17% drop in UK millionaires by 2028, with numbers expected to plummet from 3,061,553 in 2023 to 2,542,464. 

This decline is not merely a statistic but a significant transformation in the UK’s economic and social fabric.

The reasons behind this wealth migration are multifaceted. 

Karim Jetha, a seasoned investor who moved from the UK to the UAE during the pandemic, offers insight into the driving forces. 

He points to the looming prospect of higher taxes under a potential Labour government in the UK as a major push factor. 

One striking example is Labour’s campaign pledge to impose a 20% VAT on private school tuition, which would significantly increase education costs for wealthy families.

On the flip side, the UAE’s appeal is undeniable. 

With its reputation for safety and recent visa reforms, the emirate has become a beacon for those seeking a more favorable financial climate. 

The UAE’s zero-income tax policy and golden visa program, which offers long-term residency, have created an irresistible attraction for millionaires worldwide.

Dubai, in particular, has emerged as a haven for the wealthy. 

Its strategic location, modern infrastructure, and robust international school system make it an ideal destination for families looking to relocate. 

The emirate’s low crime rates and innovative initiatives like the remote worker visa have further cemented its status as a global wealth hub.

Sunita Singh-Dalal, a partner at Hourani Private Wealth & Family Offices in Dubai, attributes much of the UAE’s success to its rapidly evolving wealth management ecosystem. 

The country has introduced a comprehensive regulatory framework offering innovative wealth protection, preservation, and growth solutions in less than five years. 

This development has not gone unnoticed by the global elite, who increasingly view the UAE as a secure and profitable base for their assets.

The contrast with the UK’s changing landscape is stark. 

The British government’s decision to phase out the “non-dom” status, which previously allowed wealthy foreign residents to avoid UK taxes on overseas income, has prompted many to reconsider their residency. 

Additionally, the existing 40% duty on estates above £325,000 ($417,755) and the potential removal of VAT exemption on private school tuition fees under a Labour government are further pushing wealthy individuals to seek greener pastures – or in Dubai’s case, sandier beaches.

Hannah White, director of the Institute for Government in London, warns that these policy changes risk accelerating the outflow of wealth from the UK. 

This shift is more than just a movement of money; it represents changing priorities, evolving global dynamics, and the rise of new centers of financial power. 

As millionaires vote with their feet – and their wallets – the world watches to see how this redistribution of wealth will shape economies, policies, and societies in the years to come.

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