UAE remains the world’s leading millionaire magnet, while China and the UK are set to see mass exoduses

According to a recent report by Henley Private Wealth Management, the United Arab Emirates (UAE) has solidified its position as the world’s leading destination for attracting millionaires in 2024. The UAE’s appeal lies in its zero income tax regime, luxurious lifestyle offerings, and robust golden visa program, which are expected to bring in approximately 6,700 new millionaires this year.

Shifts in Migration Patterns: European and British Immigrants Offset Russian Slowdown

While the influx of Russian millionaires into the UAE has slowed recently, there has been a notable increase in immigrants from Europe and the UK. Over the past decade, the number of millionaires residing in Dubai, the UAE’s largest city, has surged by an impressive 78%, as highlighted in Henley’s report.

Global Hotspots: USA and Singapore Follow Close Behind

In addition to the UAE, other countries expected to see significant net inflows of millionaires this year include the USA and Singapore, with projections of 3,800 and 3,500 new millionaires, respectively. Several European nations also feature prominently in the top 10 ranking, with Italy, Switzerland, Greece, and Portugal attracting wealthy individuals seeking new residential opportunities.

Impact of Geopolitical and Economic Factors

Dominic Volek, Group Head of Private Clients at Henley & Partners, emphasized the unprecedented scale of millionaire migration in 2024, surpassing the previous record set in 2023. “As geopolitical tensions, economic uncertainties, and social upheavals continue globally, millionaires are increasingly choosing to relocate in record numbers,” Volek stated.

Outflow Challenges: China and UK Face Significant Departures

In contrast, Henley’s report indicates significant outflows of millionaires from China and the UK. China is projected to experience the largest net outflow of millionaires in 2024, with 15,200 individuals leaving the country. Similarly, the UK is expected to see an exodus of 9,500 millionaires, more than double the figure from the previous year, driven in part by changes in tax policies and political instability post-Brexit.

Policy Shifts and Economic Implications

Alec Marsh, Contributing Editor at Spear’s Magazine, commented on the UK’s shifting landscape for wealthy individuals. “The UK’s decision to modify its non-dom tax regime and other policy changes have signaled to global elites a shift in the country’s approach, influencing their relocation decisions,” Marsh noted.

Balancing Economic Growth and Social Impact

The migration patterns of millionaires carry significant implications for national economies, affecting tax revenues and economic vitality. High-net-worth individuals often contribute to sectors such as real estate, technology, and tourism, driving innovation and job creation. However, their concentration can also elevate living costs in certain areas, impacting local communities.

“By attracting wealthy residents and their capital, regions can experience transformative economic growth across various sectors,” Volek explained. “However, it’s crucial to balance this influx with policies that support broader economic inclusivity and sustainability.”

As global millionaire migration continues to evolve, countries are navigating how best to harness the benefits while mitigating potential challenges, ensuring sustainable economic development and prosperity for all residents.

Reference: Butler, E. (2024b, June 20). UK set to lose thousands of millionaires as rich vote with their feet and move overseas. Euronews. https://www.euronews.com/business/2024/06/20/uk-set-to-lose-thousands-of-millionaires-as-rich-vote-with-their-feet-and-move-overseas