What’s Attracting Millionaires to Dubai?

Millionaires are moving to Dubai because they see it as an ideal place to live and a safe place to invest money. Dubai now has 210 individuals worth over $100 million and 15 billionaires. More Russians are moving to the UAE than before. They used to be less than 2% of the population, but now they make up 6% of all investors in the UAE. Chinese investors are also putting money into Dubai real estate, with a 130% increase since 2021. Millionaires from the UK and USA are also moving to Dubai in large numbers. It is predicted that Dubai will continue to attract more wealthy individuals in the future. Here is why Dubai is attracting more and more millionaires each year.

Tax Benefits and Financial Incentives

Dubai has no personal income or capital gains tax. Millionaires retain a higher percentage of their earnings and enjoy tax savings compared to other global financial centres. For example, a millionaire earning $1 million would likely have to pay a much higher tax rate in their home country. In Dubai, they don’t have to pay any income tax, which saves them a lot of money.

The free zone areas in Dubai, like the Dubai International Financial Centre (DIFC) and the Dubai Multi Commodities Centre (DMCC), provide benefits for businesses, such as:

• 100% foreign ownership

• no currency restrictions

• exemption from import and export duties

These incentives make Dubai an attractive destination for entrepreneurs and investors looking to establish or expand their businesses.

Investment Opportunities

Dubai is a MENA region's investment capital and offers investment opportunities backed by its stable and diversified economy. Millionaires are always interested in starting their business in Dubai because of favourable business policies. There is a strong belief among entrepreneurs and investors that setting up and operating a business here is hassle-free, safe, and sustainable.

The city is transforming into a smart city and implementing the latest technology into business practices like artificial intelligence, virtual reality, and blockchain. Such future-oriented sentiment is attracting High-Net-Worth Individuals (HNWIs) to Dubai and encouraging them to invest across various industries.
 

Moreover, Dubai's real estate market offers attractive investment options, especially in the luxury real estate segment. The high long-term return on investment and rental yields are major factors that attract millionaires to Dubai.

Golden Visa

The introduction of a golden visa has allowed millionaires to obtain long-term residency through investment. The Golden Visa programme was introduced in 2019, and over 150,000 Golden Visas have been issued so far. It has made the UAE a leader in the global residency-by-investment country traditionally dominated by places like Portugal and other European countries. The neighbouring Gulf countries like Saudi Arabia, Qatar, and Bahrain also provide Golden Visas. Still, the UAE has been able to win investor confidence with the incentives it offers upon holding the visa. They are:

• Easily travel in and out of the UAE without applying for a new visa.
• Do not require a sponsor or a job in the UAE for residency.
• Grants residency to spouses and children of a visa holder.
• Access to the UAE healthcare system and discounts at certain healthcare providers.
• Can sponsor visas for domestic helpers like drivers,  maids, and butlers.
• Access to the Esaad privilege card that offers discounts at over 7,000 businesses throughout the UAE and in 92 countries.
• Application for visa renewal once the validity expires.

Quality of Life

Dubai is easily one of the best cities to live in due to its excellent quality of life and world-class infrastructure. The luxurious lifestyle, beautiful beaches, fancy restaurants, excellent road connectivity, and world-class entertainment venues make Dubai a perfect place for millionaires.

Besides the luxurious standard of living, Dubai attracts HNWIs with its constant innovation and cultural evolution, which is evident when visiting the Museum of the Future, Dubai Miracle Garden, and Dubai Frame. The luxury activities in Dubai, like Desert Safaris, hiring private air charters, hiring luxury yachts, dinner in the sky and sky diving, encourage millionaires to come to Dubai and experience these activities.

Dubai Economic Agenda

Dubai Economic Agenda D33, approved by the government, aims to double the size of the economy in the coming decade. The agenda aims to establish Dubai as one of the top three global cities and increase foreign trade, investment in the private sector, and government expenditure. D33 features 100 transformational projects, such as introducing 65,000 young Emiratis into the job market, starting the Dubai Traders project to support and help young traders in important industries, and promoting green and sustainable manufacturing.

The government's recent deal, called comprehensive economic partnership agreements (CEPAs) with countries in Asia, Africa, Latin America, and Europe, has secured deeper trade relationships with major economies worldwide. These policies, designed to attract wealthy individuals and skilled workers from other countries, also help attract millionaires.

Other Factors that Attract Millionaires to Dubai

Some other factors that attract millionaires to Dubai are:

• Dubai's prime location enables flights to reach two-thirds of the globe within an 8-hour timeframe.
• The public transportation system is excellent and efficient.
• The education and healthcare systems are among the world's best.
• It boasts an expat-friendly environment that meets the needs of the international community.
• No language barrier
• The crime rate is very low, and the police are reliable.

Over the past few years, the government has taken essential steps to direct the city towards greater economic growth and development. Over 200 international schools, luxurious villas, and high-end apartments make Dubai an attractive destination for HNWIs. With the world-class healthcare system and the city's status as a luxury hub,  Dubai expects to welcome 4,500 new millionaires this year.