The United Arab Emirates (UAE) is set to attract nearly 6,000 millionaires annually over the next five years, according to the Global Wealth Report released by Swiss bank UBS. The report predicts that the number of millionaires in the UAE will increase by 15 per cent, from 202,201 in 2023 to 232,067 in 2028. Henley and Partners have also forecasted a record net inflow of 6,700 millionaires into the UAE this year, making it the top destination for high net worth individuals from around the world.
For the third consecutive year, the UAE is positioned as the leading wealth magnet globally, with significant inflows from the UK, India, and Europe. This is attributed to the country’s zero income tax, golden visa program, luxury lifestyle, and strategic location. The UAE is expected to outperform its competitors in attracting millionaires, including the US, which is projected to see a net inflow of 3,800 millionaires in 2024. The country is also expected to see higher migration of millionaires compared to Germany, Hungary, Qatar, Singapore, Spain, Portugal, Italy, China, Greece, Netherlands, and the UK.
The UAE has witnessed substantial growth in wealth, with a 16 per cent annual compound growth rate between 2000 and 2010, and 4 per cent between 2010 and 2023. This growth is reflected in the surge in luxury property prices, driven by an influx of high-net-worth individuals post-pandemic. The number of prime home listings in the second quarter of 2024 dropped by nearly half compared to the previous year, indicating a strong demand in the luxury property market.
In addition to the UAE, Saudi Arabia is also expected to see a 15 per cent increase in the number of millionaires by 2028, reaching 403,8784 compared to 351,885 in 2023. Globally, wealth growth recovered by 4.2 per cent in 2023, following a 3 per cent contraction in the previous year. The growth was primarily driven by regions such as Europe, the Middle East, Africa, and the Asia-Pacific region.
Managing wealth requires careful stewardship and dedication. As the world’s only truly global wealth manager, UBS Global Wealth Management understands the shifting landscape of wealth and is committed to translating these changes into opportunities for their clients. The UAE’s appeal as a destination for migrating millionaires is expected to continue growing, driven by its attractive lifestyle offerings, tax benefits, and strategic location. With an influx of high-net-worth individuals from various regions, the UAE is poised to maintain its status as a top wealth magnet in the years to come.
