Latest news with #PrivateWealthMigrationReport2025
Mint
31-07-2025
- Business
- Mint
Wealth in Motion: Exploring Emerging Destinations for Capital
In 2025, around 142,000 millionaires are projected to relocate internationally, up from approximately 134,000 in 2024, per the Henley & Partners Private Wealth Migration Report 2025. This movement is driven by changing perceptions of taxation, governance, and long-term residency value. Among the countries expected to experience the largest net inflow of millionaires in 2025, the United Arab Emirates (UAE) stands out - set to gain 9,800 new millionaires this year alone, the highest globally. Dubai, home to 81,200 millionaires - with a growth rate of 102% and 237 centi-millionaires (individuals with over USD 100 million in wealth), is poised to be a key destination for this influx of global wealth. UAE +9,800 63.0 98% USA +7,500 43.7 78% Italy +3,600 20.7 20% Switzerland +3,000 16.8 28% Saudi Arabia +2,400 18.4 55% Source: Henley & Partners Private Wealth Migration Report 2025 Jurisdictions once favoured solely for tax efficiency are now being reassessed through a broader lens - where governance, deep talent pools, legal reliability, mobility pathways, and lifestyle infrastructure play growing roles in wealth relocation decisions. Wealth relocation today is shaped as much by risk management as by opportunity. While the numbers show where capital is flowing, understanding why it moves is equally critical. Rising geopolitical uncertainty, tightening tax regimes, and increasing regulatory complexity in traditional financial centres are prompting high-net-worth individuals to reassess their base jurisdictions. According to Knight Frank's Wealth Report 2024,19% of UHNWIs are actively considering a second residency or citizenship. The European Lifestyle Report 2024, based on a survey of 750 HNWIs across 11 European countries, further clarifies the motivations behind such moves - with security, employment opportunities, and taxation ranking as the top three factors influencing relocation decisions. As a result, jurisdictions offering stability, long-term residency pathways, and institutional trust - rather than short-term incentives - are increasingly preferred by globally mobile families seeking to preserve and grow wealth across generations. Is Dubai Gaining Traction Among Global Elites? Forecasts suggest that if Dubai attracts even 5% of the projected migrating millionaires in 2025, it could see a net inflow of around 7,100 high-net-worth individuals, representing an estimated AED 26 billion (USD 7.1 billion) in new capital inflow. Dubai's economic direction is guided by the Dubai Economic Agenda (D33) - a 10-year (2023-2033) blueprint to double the Emirate's GDP and elevate it into the world's top three urban economies. Beyond macro goals, the agenda emphasizes institutional continuity, economic diversification, and digital governance, aligning closely with what mobile wealth seekers are looking for: predictability in a volatile world. In recognition of its digital leadership, Dubai was recently ranked 4th globally in the IMD Smart City Index 2025, making it the highest-ranked city in the GCC, Arab region, and Asia - with resident satisfaction scores above 84% across key services such as health, e‑governance, internet speed, and public transport. Ease of Doing Business as a Foundational Advantage Dubai's business setup landscape continues to evolve into a high-efficiency, digitally integrated ecosystem. In Q1 2025 alone, over 19,000 new commercial licences were issued in Dubai, representing 59% of all business licences across the UAE, and signaling robust market confidence and ease of entry for investors. The Invest in Dubai platform serves as a single-window digital service that allows investors to complete commercial licensing, approvals, payments, and renewals through a unified online interface. A key advancement under the D33 is the Dubai Unified Licence initiative. The initiative assigns every business a unique identification number and QR code, whether it operates in the mainland or a free zone, creating a unified business identity across the emirate. This system simplifies data access for government departments, banks, utilities, and service providers, and makes processes like bank account opening and licence updates more seamless. Supporting innovation further, during Q1 2025, the Dubai Chamber of Digital Economy helped launch and expand 127 digital startups, a 135% increase from the previous year, underscoring government support for entrepreneurship and streamlined access to capital and infrastructure. By the end of H1 2025, 440 firms involved in wealth and asset management were operating in Dubai's financial ecosystem, including approximately 85 hedge funds, reflecting a notable increase in fund-related activity. According to the Dubai International Financial Centre (DIFC) half-yearly results, the number of family-owned business entities grew by 73% compared to H1 2024, while foundations registered in the centre rose by 54%, reaching a total of 842. These activities fall under the purview of multiple regulatory authorities operating in Dubai, including the Dubai Financial Services Authority (DFSA) for entities within DIFC, and the Securities and Commodities Authority (SCA) and Dubai Courts for broader mainland operations. CBRE data shows that Dubai's residential real estate sales reached AED 434 billion in 2024, marking a 33% increase over the previous year. The city recorded close to 181,000 transactions, reflecting a sustained rise in demand. Within the luxury segment, ultra-high-net-worth buyers (net worth above USD 20 million) accounted for approximately USD 4.4 billion in residential property purchases in 2024, marking a 76% increase year-on-year, according to Knight Frank's Destination Dubai 2024 report. Separately, Knight Frank's Wealth Report 2025 notes that luxury home prices in Dubai rose by 147% between 2019 and 2024, making it the fastest-growing prime residential market globally during that period. Recent market data suggests that villa sales activity in Dubai rose by 65% year-on-year in early 2025, with transaction values reaching approximately AED 53.4 billion, according to Provident Estate. For the full year, around 19,700 new luxury villas are expected to be delivered, based on estimates from DXB Interact. However, supply at the upper end of the market remains relatively constrained. This evolving supply-demand dynamic may be influencing how luxury real estate in Dubai is viewed as part of broader wealth migration and capital allocation strategies. Lifestyle, Talent, and Safety as Strategic Drivers Dubai's appeal to globally mobile wealth increasingly hinges on its integration of quality of life, talent access, long-term residency infrastructure, and personal security. Over 220 private schools operate across the city, offering 17 international curricula, with more than 84% of students attending institutions rated 'Good' or better by Knowledge and Human Development Authority (KHDA). Healthcare access is equally robust, with over 3,900 facilities, including 50+ hospitals and 600+ clinics, while the city attracted 691,000 medical tourists in 2023, generating AED 1.03 billion in revenue, according to Dubai Health Authority (DHA). Safety and stability are central to Dubai's overall appeal. The UAE was ranked the safest country in the world in Numbeo's 2025 mid-year Safety Index, with a score of 85.2, ahead of more than 160 countries globally. Within the country, Dubai ranked 3rd globally among cities with a safety score of 83.8, reflecting consistently low crime rates and high levels of resident trust in public safety. Coupled with world-class education and healthcare systems, Dubai's long-term visa options for investors, entrepreneurs, and highly skilled professionals reinforce the city's role as a place where families can build both lasting wealth and meaningful personal roots. Looking Ahead: Building Relevance for the Next Generation As wealth strategies evolve to prioritise resilience, long-term visibility, and multi-generational planning, Dubai is positioning itself not just as a wealth hub - but as a jurisdiction that can adapt alongside its residents. Its continued investments in regulation, infrastructure, and talent signal a long game: one focused on permanence, not just presence. Rather than competing solely on tax efficiency or ease of doing business, Dubai is now being evaluated for the depth of its legal frameworks, the maturity of its financial services, and its capacity to serve as a stable base amid global uncertainty. For a growing number of families and institutions, the question is shifting - from where wealth can be held to where it can be grown, safeguarded, and lived meaningfully.
Business Insider
23-07-2025
- Business
- Business Insider
The UK reportedly plans to woo the ultra-rich back with a new 'golden visa.' Analysts say the damage may already be done.
The UK is reportedly considering reviving its "golden visa" plan to attract wealthy foreign investors as it faces the prospect of a record-breaking outflow of millionaires. The proposed investor visa, which Bloomberg reported is under discussion by senior government ministers, would target high-net-worth individuals (HNWI) willing to invest in strategically important sectors such as artificial intelligence, clean energy, and biotech. The UK Home Office declined to comment on any potential plans. The move comes amid growing concerns that the UK's crackdown on tax perks for the wealthy — including the abolition of the non-dom regime in April — could drive a mass departure of wealthy residents and their capital. An April analysis by the Centre for Economics and Business Research found that if half of former non-domiciled taxpayers left the country, the Treasury could face net losses of £2.4 billion ($3.26 billion) in the first year alone. Until its repeal, the "non-dom" regime had allowed wealthy foreign nationals living in the UK to avoid paying UK tax on income earned abroad, making Britain especially attractive to global elites with international assets. However, according to Henley & Partners' Private Wealth Migration Report 2025, Britain is projected to lose 16,500 millionaires this year alone, more than any other country on record, including China, in part due to tax changes. It's a dramatic reversal for a nation once seen as a hub for global wealth. 'Much of the damage has already been done' Analysts blamed rising taxes, political instability, and the end of the non-dom status for the departure of the ultrawealthy. "There's no doubt a refreshed golden visa scheme could help slow the exodus and potentially lure some HNWIs back — but let's be clear: much of the damage has already been done," Nigel Green, CEO of global financial advisory giant deVere Group, told Business Insider. "The UK's competitiveness in the global race for wealth has taken a significant hit in recent times, and trust doesn't return overnight," he said. "Still, for those with long-standing business, personal, or cultural ties to Britain, it could be enough to start a conversation again. It's not a silver bullet, but it may be worth a shot." Matthew Lesh, UK country manager at consultancy Freshwater Strategy, blamed what he called "the toxic mix of historically high taxes and the abolition of the non-dom regime." He said it has "resulted in thousands of the world's wealthiest individuals fleeing" the UK, adding: "It's often forgotten that not only do the wealthiest have the widest shoulders, but also the longest legs." According to the UK's National Audit Office, wealthy individuals paid £119 billion ($161 billion) in personal taxes in 2023-24, accounting for 25% of all UK personal tax receipts. The top 29,000 earners alone were responsible for £34 billion in income tax. "A new 'golden visa' could be an attractive prospect for some of the world's wealthiest," Lesh continued, "but if they arrive to find themselves paying exorbitant taxes for poor public services and threatened by a new 'wealth tax,' they are unlikely to stick around for long." A tarnished history The UK's original Tier 1 investor visa, introduced in 2008, granted residency to foreigners who invested at least £1 million ($1.35 million). That threshold was raised to £2 million in 2014. The route was scrapped in February 2022 amid mounting concerns over illicit finance and national security, especially after Russia's invasion of Ukraine. A 2023 government review found that a minority of golden visa holders before 2015 were flagged as high risk, with some holders possibly linked to corruption or organized crime. That history has left a bitter legacy. In a letter to Chancellor Rachel Reeves this month, a coalition of anti-corruption groups warned that a new investor visa would "expose the UK to acute national security risks by facilitating foreign influence and the flow of illicit finance." 'Change the narrative' Supporters argue that a new plan could be more tightly designed, and is urgently needed. James Quarmby, head of private wealth at law firm Stephenson Harwood, told BI the government "can't afford to ignore the reality." "When you've got a lot of people leaving, you've got two choices — either stop them by changing the rules that are driving them out, or attract new people in." "An investment visa could change the narrative in the UK," he said. "Right now, the perception among wealth holders and their advisors is that the UK has become a hostile place for capital." Quarmby said the visa should be bold and transparent, with meaningful incentives: "£2 million is too low. I'd recommend a £4 to £5 million minimum investment. But that must come with tax incentives." "The government also needs to guarantee policy stability," he added. "People aren't going to relocate their lives and businesses to the UK only to have the rules change again in two years." Green echoed that view: "The number one deterrent is uncertainty. Tax policy has become unpredictable, and for HNWIs, that's a dealbreaker. It's not just about rates — it's about tone, messaging, and direction of travel." A political balancing act The proposal puts the UK government in a tricky position. While the government faces intense fiscal pressure and limited room for big tax hikes, it must also appease a parliamentary base wary of any measures seen as overtly pro-wealth. Quarmby predicts Labour will "quietly" pursue an investor visa under a different label. "I doubt they'll call it a golden visa — it'll be something more palatable, like a 'Global Talent Visa' with an investment component. That way, it sounds more blue-collar." Still, he sees the odds of action as high. "There's at least a 60-40 chance this happens. The Treasury is running out of options. If you're out of blood to squeeze from the current tax base, you need new blood." However, Green cautioned: "The UK used to be a magnet for global wealth — now it's often seen as a cautionary tale. Rebuilding trust will require sustained effort and meaningful reforms, not just a visa tweak."
