UAE: Why are so many centi-millionaires relocating, investing in Dubai, Abu Dhabi?
Dubai and Abu Dhabi have taken the top spots for attracting and developing wealth for millionaires as well as where millionaires are looking to relocate, according to a new study released on Monday.
Launched by global real estate consultancy Savills, the research found that Dubai topped the list as it 'combines financial incentives with a good climate and quality of life.'
Dubai now boasts 81,200 resident millionaires, including 237 centi-millionaires and 20 billionaires, Henley & Partners' latest study released this month revealed. The emirate is also the biggest climber in the top 50 over the past year, moving from 21st to 18th place.
The study noted that Dubai and Abu Dhabi (where 75 residents are centi-millionaires) are projected to see their centi-millionaire populations more than double over the next 10 years.
Other cities that made to the top 12 list for attracting high net worth individuals (HNWI) are Singapore, Zurich, Auckland, Boston, New York, San Jose, Seattle, Miami, Dallas and San Francisco, according to Savills Dynamic Wealth Indices.
Savills noted that Abu Dhabi and Dubai are a particularly attractive option for HNWIs who bring their companies with them. These areas have a dynamic economy that's diversifying away from oil and attracting growing sums of corporate and sovereign wealth investment.
This has boosted real estate transaction volumes and values as prime residential capital values in Dubai rose by 6.8 per cent in 2024.
Interestingly, the newly launched index revealed that Dubai and Abu Dhabi are also among the top 12 cities for corporates for attracting and developing business wealth and investment. Abu Dhabi has been ranked 5th while Dubai has been placed at 11th in the index.
This means that Abu Dhabi has ranked in the top 5 for both, individuals and corporates looking to relocate, highlighting its range of benefits.
'Abu Dhabi's sovereign wealth has notably attracted connected family offices and global corporates. In turn, this has stimulated office demand – with new businesses requiring space – and the luxury residential market. Arguably, the push of fiscal policies of other countries has heightened the UAE's pull,' said Rachael Kennerley, director of research at Savills Middle East.
It added that fluid geopolitical and economic environment; changing government policies, taxes and incentives; and quality-of-life factors, are increasingly influencing where high net-worth individuals (HNWIs) and footloose companies choose to locate.
'Traditional predictors of global wealth flows, such as government policies, taxes and incentives, and the presence of either innovative talent pools or existing communities of similar individuals, have always been key drivers of dynamic footloose companies and individuals and will continue to play a major role, but a sense of place, and a high quality of living, are progressively the deciding factor when making location decisions,' said Paul Tostevin, director of Savills World Research.`
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
2 days ago
- Khaleej Times
UAE emerging as world's new wealth, investment hub; here's why
The UAE is fast establishing itself as a leading global wealth hub and a magnet for high-net-worth individuals (HNWIs), thanks to its business-friendly environment, robust regulatory framework, and political stability. The latest report by Capgemini Research Institute said that UAE along with Singapore, Hong Kong and Saudi Arabia have established themselves as prime alternatives, utilising advantageous tax policies, strong financial ecosystems, and political stability to draw global wealth.' The study noted global diversification is also a key strategy for next-gen high-net-worth individuals (HNWIs), who seek investment opportunities in traditional wealth hubs of London, Switzerland, and New York, therefore, emerging wealth hubs such as UAE, Singapore, Hong Kong, and Saudi Arabia are very quickly becoming attractive destinations. In the post-pandemic period, the UAE has seen record millionaires migration from around the world. According to Henley & Partners, the UAE attracted 7,200 millionaires from around the world in 2024, 4,700 in 2023 and 5,200 in 2022, attracted by zero income tax, safety and security, high returns on property investments and world-class quality of life. This is in addition to the 6,500 tech millionaires that the emirate housed in the first half of 2024. With a population of just over 10 million, the UAE is the world's 14th largest wealth market, housing 130,500 high-net-worth individuals or millionaires. UAE a wealth management hub The Middle East is also emerging as a formidable contender in global wealth management and the UAE and Saudi Arabia are capitalising on this trend as well, moving quickly to draft regulations that support international investors. 'In an increasingly uncertain world, high net worth individuals no longer question whether to keep their wealth in Switzerland, Singapore, UAE or Saudi Arabia. Instead, they embrace a multi-jurisdictional approach, distributing their assets across various financial centres to mitigate risks and maximise opportunities. Wealth management firms are evolving their strategies to provide clients with a unified view of their diverse investments,' said Capgemini Research Institute's study — Sail the great wealth transfer, setting a course to win next-gen HNWIs. The UAE's net wealth is growing faster than the regional and global average, reaching $2.9 trillion in 2023, growing by 10 per cent from the previous year, versus 8 per cent growth in. the Middle East and Africa region, according to Boston Consulting Group (BCG) annual global wealth report, Global Wealth Report 2024. Meanwhile, global financial wealth rose 7 per cent in 2023, following a decline of 4 per cent in 2022. Over the next five years, an estimated $92 trillion of financial wealth will be created globally. In the UAE, around 81 per cent of financial wealth is investable, which is expected to climb to 83 per cent by 2028, offering wealth managers massive opportunity. Influx of wealth managers To capitalise on the growing opportunities, local and foreign wealth management firms are further strengthening their teams while many new firms have established their presence in the UAE by relocating their offices in Dubai International Financial Centre (DIFC) and ADGM in Abu Dhabi over the last few years. As the Middle East, Africa, and South Asia's leading financial hub, DIFC oversees $450 billion (Dh1.65 trillion) in private wealth. More importantly, the free zone has access to $3 trillion in private wealth within an hour's flight, thanks to Dubai's strategic location. Last year, BlackRock, the world's largest asset manager with $11.5 trillion, was granted a commercial licence to operate in Abu Dhabi. Similarly, Rothschild & Co, a global wealth and management firm with over $100 billion in assets under management — expanded its business in Dubai last year with a new office to cater to the growing number of affluent population in the emirate. ADGM in Abu Dhabi granted licence to trillion-dollar asset management firms PGIM and New York Stock Exchange-listed Prudential Financial and Nuveen. During the first quarter of 2025, ADGM reported that assets under management grew 33 per cent compared to the same period in 2024. At the end of Q1 2025, 119 asset and fund managers managed a total of 184 funds out of ADGM. Next-gen millionaires seek high returns Capgemini Research Institute revealed that 88 per cent of relationship managers say that next-gen millionaires are 'more interested in alternatives than baby boomers.' While baby boomers focus most often on wealth preservation, next-gen HNWIs are predominantly risk takers, favouring higher growth asset classes such as private equity and cryptocurrency. 'With next-gen clients expected to switch relationship managers post-wealth transfer, factors like advisor age, digital experience, and relevance of the overall value proposition are key. To align with the evolving needs of younger and globally mobile investors, wealth management firms must modernize client engagement through artificial intelligence-driven tools, digital channels and tailored solutions,' Eric Mellor, wealth management specialist at Temenos UAE said. Industry executives suggest that many family offices especially led by second and third generations are now investing in cryptocurrency businesses, viewing them not as speculative gambles but as structured, strategic asset classes.
Khaleej Times
3 days ago
- Khaleej Times
Dubai office rents soar amid tight supply, strong demand
Dubai's office market is thriving, driven by strong demand, limited supply, and a surge in rental prices, positioning the emirate as a global hub for business and innovation. According to Savills' latest Dubai Office Market report, average year-on-year rental price growth soared 45 per cent across various sub-segments in 2025, with key business districts like the Dubai International Financial Centre (DIFC), Business Bay, Downtown Dubai, and TECOM leading the charge. DIFC, in particular, boasts an impressive occupancy rate of 98 per cent, underscoring the intense competition for premium office space. The city's Grade A office spaces are in high demand from both regional and international occupiers, fueled by Dubai's strategic appeal as a gateway to the Middle East, Africa, and Asia. Savills reports a 4.9 per cent increase in net effective occupier costs in Q1 2025, encompassing base rent, fit-out expenses, and other leasing costs. This places Dubai as the eighth most expensive prime office market globally, with average costs of $148.90 per square foot per annum. 'This growth reflects confidence in Dubai's long-term positioning,' said Toby Hall, head of Commercial at Savills. 'Companies view Dubai not just as a regional base but as a global node for innovation, finance, and enterprise.' Core sectors such as financial services, consulting, and technology and media are driving demand, accounting for the majority of market transactions. However, the supply of quality office space remains critically low, with Cushman & Wakefield Core projecting an undersupply until 2027-2028. While new office supply is set to double in 2025, adding 1.66 million square feet, much of this is already pre-leased due to unrelenting demand. DIFC alone will contribute nearly one-third of the city's office supply over the next three years, with most spaces expected to be occupied before completion. Dubai's office market holds the second-highest global occupancy rate at 92 per cent, projected to exceed 94 per cent by the end of 2025. In 2024, office rents surged by 22 per cent year-on-year, with forecasts predicting an additional 10-12 per cent increase in 2025. This growth is fuelled by an influx of new businesses and foreign companies drawn to Dubai's status as a trade, tourism, and financial hub. A CBRE report highlights that the chronic undersupply of quality space in prime locations has intensified competition, pushing rental rates up by over 20 per cent annually and creating challenges for tenants during lease renewals. Despite the tight market, landlords are adapting to meet evolving occupier needs. In established districts, where Grade A stock is scarce, property owners are offering tailored leasing terms, enhanced amenities, and refurbishments to attract tenants. In Business Bay, some strata landlords are now quoting rents comparable to DIFC, reflecting a broader uplift in perceived value across sub-markets. Meanwhile, lease renewals remain a popular choice for businesses, particularly outside DIFC, where Rera rental protections provide stability in a rising cost environment. Occupiers are also prioritizing functional layouts and long-term adaptability over expansive or elaborate office designs, optimizing space usage to align with modern workplace trends. While the outlook for Dubai's office market remains robust, with strong fundamentals and sustained occupier interest, the persistent undersupply poses challenges, as new deliveries in 2025 — approximately 100,000 square metres — are unlikely to alleviate pressure significantly. Most of these spaces will be pre-leased, leaving little room for new entrants or expanding businesses.
Khaleej Times
4 days ago
- Khaleej Times
UAE is rapidly becoming the go-to destination for the world's wealthiest families
The UAE is rapidly becoming the go-to destination for the world's wealthiest families seeking to manage assets worth trillions of dollars, and the recent Family Office Summit 2025, held in Abu Dhabi, underscored this shift. With its tax advantages, strategic location, and progressive regulatory framework, the UAE is redefining wealth management, attracting global high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) seeking innovative and secure ways to preserve and grow their wealth. Bringing together 235 high-level participants — including 61 family offices, 82 family holdings, and representatives managing over $500 billion in assets — the summit highlighted why the UAE is a magnet for family offices. The summit, a cornerstone event for global investors, showcased Abu Dhabi's rise as a hub for wealth leadership, building on the success of previous Dubai editions. Discussions spanned 11 panels, covering topics from governance to the future of legacy, with a focus on how family offices are evolving. A standout panel, 'Family Office 2.0,' featured experts like Vaidotas Melynavicius of Santocedrus Capital and Amer Al Osh of Gewan Holding, who emphasized the role of next-generation leaders in driving tech-enabled, future-ready family offices. These young stewards are embedding sustainability, technology, and entrepreneurial thinking into their investment strategies, reflecting a generational shift. According to a recent report, 79 per cent of Middle Eastern next-gen investors see high potential in digital and tech sectors, aligning with the UAE's innovation-driven vision. The UAE's appeal lies in its unique blend of advantages. Dubai, home to over 75 per cent of the region's family offices, manages more than $1.2 trillion in assets through 120 families and 800 family-related entities, as noted by Arif Amiri, CEO of the Dubai International Financial Centre (DIFC) Authority. The DIFC, the Middle East, Africa, and South Asia's leading financial hub, oversees $450 billion in private wealth and is central to this ecosystem. With access to $3 trillion in private wealth within an hour's flight, Dubai's strategic location makes it a gateway for global investment, connecting Asia, Europe, and the Americas. Tax benefits are a major draw. The UAE's zero-income tax, zero capital gains tax, and absence of inheritance tax create a tax-efficient environment for wealth preservation across generations. The introduction of a corporate tax in 2023 has further strengthened the UAE's financial framework, offering clarity and stability. These advantages are particularly appealing to Indian HNWIs, who are increasingly relocating to the UAE to structure their finances. The DIFC's 2023 Family Arrangement Regulations provide tailored support for single and multi-family offices, ensuring seamless operations for wealth management, tax planning, estate planning, and legal counsel. The UAE's regulatory environment is another key factor. The Dubai World Trade Centre Authority and DIFC have established clear frameworks for family offices, supporting both single-family offices (SFOs) and multi-family offices (MFOs). The DIFC's Global Family Business and Private Wealth Centre, launched in 2022, is the first of its kind globally, offering advisory services, networking, and dispute resolution. Family businesses contribute significantly to the emirate's economy, aligning with the Dubai Economic Agenda D33, which aims to position Dubai among the world's top four financial centers by 2033. Investment opportunities in the UAE are diverse and dynamic. Family offices are increasingly drawn to private equity, particularly in green energy, which aligns with the UAE's sustainability goals. Real estate, hospitality, technology, and healthcare are also thriving sectors, offering high growth potential. The Abu Dhabi summit highlighted how family offices are leveraging these opportunities to diversify portfolios and drive long-term value. For instance, discussions revealed a growing interest in digital assets, with the UAE's Virtual Asset Regulatory Authority (VARA) providing clarity and custody solutions. Next-gen and female leaders are embracing cryptocurrencies as strategic asset classes, moving beyond speculation to structured investments. The summit's focus on governance and resilience resonated strongly. Panels explored how family offices can future-proof their operations through smart governance, proactive risk management, and alignment with long-term goals. Technologies like artificial intelligence are being adopted to enhance decision-making and legacy planning, particularly by younger leaders. Obediah Ayton, Chairman of the Family Office Summit, noted, 'Family offices are strategically balancing financial returns with long-term impact, particularly through investments in high-potential sectors like healthcare and real estate.' The event's curated design, with dynamic seating and private networking lounges, fostered meaningful connections, with 19 family offices attending in the UAE for the first time. As a speaker at the event noted, 'the UAE's progressive vision, exemplified by its embrace of next-gen and female leadership, sets it apart.'
