UAE Emerges as Top Wealth Magnet for Third Consecutive Year
KARACHI: Not only Pakistanis but millionaires from around the world are heading to Dubai, making the United Arab Emirates the biggest wealth magnet, reported CNBC on Tuesday.
The UAE is set to lead for the third year in a row as the world’s top destination for the wealthy, expecting a record-breaking inflow of 6,700 millionaires by year’s end, according to The Henley Private Wealth Migration Report 2024 cited by CNBC. This surge in wealthy individuals relocating to the UAE underscores the country’s growing appeal as a hub for affluent migrants seeking favorable economic conditions, a luxurious lifestyle, and strategic geographical positioning.
Pakistani media reported last month that data prepared by the US-based non-profit Centre for Advanced Defence Studies has listed over 23,000 properties belonging to Pakistani nationals up to 2022. These properties, initially valued at $10 billion two years ago, are now worth $12.5 billion due to a significant 25 percent increase in property prices in the emirate. This appreciation in property values reflects Dubai’s robust real estate market and its attractiveness as a safe and lucrative investment destination.
Millionaires from Pakistan have also relocated their businesses to the UAE or migrated to other countries, although Pakistani authorities have never officially reported this trend. The relocation of Pakistani businesses highlights the UAE’s favorable business environment, including tax benefits, ease of doing business, and political stability, which are critical factors for high-net-worth individuals (HNWIs) seeking to safeguard and grow their wealth.
CNBC reported that the US comes in second for attracting foreign high-net-worth individuals (HNWIs) and is projected to see an inflow of 3,800 millionaires in 2024. The United States, with its diverse economic opportunities, stable political environment, and world-renowned educational institutions, remains a significant draw for wealthy individuals globally.
However, China expects to see the biggest millionaire exodus with a projected 15,200 HNWIs anticipated to leave the country by the end of the year. The outflow from China is attributed to various factors, including economic uncertainties, political tensions, and the pursuit of better opportunities and lifestyles abroad. This large-scale migration of wealth from China marks a significant shift in the global distribution of affluent individuals.
A record-breaking 128,000 millionaires, or HNWIs with liquid investible wealth of $1 million or more, are expected to relocate in 2024, according to the report. This figure surpasses the previous record of 120,000 millionaires set last year, highlighting an accelerating trend in the global migration of wealth. The increasing mobility of the wealthy is reshaping the economic landscapes of both the countries they leave and those they move to.
The data for the report was supplied by global wealth intelligence firm New World Wealth and features insights on the inflows and outflows of millionaires and their migration patterns globally. The comprehensive analysis provides a clear picture of how wealth is shifting around the world and the implications of these movements.
“This great millionaire migration is a canary in the coal mine, signalling a profound shift in the global landscape and tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the nations they leave behind or those which they make their new home,” said the report. This statement underscores the broader economic and geopolitical implications of such wealth migrations, indicating potential shifts in global power dynamics and economic influence.
These migration inflows into the UAE are largely boosted by movement out of the greater Middle East region, India, Russia, Africa, and more recently, the expected influx of individuals from the United Kingdom and Europe, according to the research. The UAE’s strategic position as a business hub, coupled with its liberal visa policies and world-class infrastructure, makes it a preferred destination for wealthy individuals from these regions.
The top 10 countries expecting to see the highest net inflows of millionaires in 2024, according to Henley and Partners, are the UAE with 6,700; the US with 3,800; Singapore with 3,500; Canada with 3,200; Australia with 2,500; Italy with 2,200; Switzerland with 1,500; Greece with 1,200; Portugal with 800; and Japan with 400. Each of these countries offers unique advantages, from economic opportunities and political stability to high quality of life and favorable tax regimes, attracting wealthy individuals seeking new opportunities.
China expects to see the biggest millionaire exodus with a projected 15,200 HNWIs expected to leave the country by year’s end, according to the report. The UK comes in second, projected to see a net loss of 9,500 millionaires by the end of 2024, followed by India, which is expected to lose 4,300 millionaires this year. These significant outflows reflect the broader socio-economic and political challenges in these countries, prompting wealthy individuals to seek more favorable environments elsewhere.
According to CNBC, the top 10 countries or territories projected to see the highest outflows of millionaires in 2024 are China with 15,200; the UK with 9,500; India with 4,300; South Korea with 1,200; the Russian Federation with 1,000; Brazil with 800; South Africa with 600; Taiwan (Chinese Taipei) with 400; Nigeria with 300; and Vietnam with 300. These outflows indicate potential challenges and opportunities for both the departing and receiving countries in managing and leveraging this wealth migration.