The UAE is set to welcome nearly 6,000 new millionaires annually over the next five years, drawn by the nation's increasing allure for high net worth individuals worldwide. The Global Wealth Report from Swiss bank UBS predicts a surge in millionaires, with assets exceeding $1 million, rising by nearly 29,866 or 15% from 202,201 in 2023 to 232,067 by 2028. Henley and Partners anticipates a record influx of 6,700 millionaires into the UAE this year, topping all other countries. For the third consecutive year, the UAE is poised to lead as the global hub for wealth, significantly enhanced by substantial inflows from the UK, India, and Europe.
"With no income tax, golden visas, a luxurious lifestyle, and a strategic location, the UAE has solidified its position as the top destination for migrating millionaires," stated Henley and Partners. The UAE is expected to attract nearly double the number of millionaires compared to the US, which is forecasted to see a net inflow of 3,800 millionaires in 2024. The UAE will experience a greater migration of millionaires than Germany, Hungary, Qatar, Singapore, Spain, Portugal, Italy, China, Greece, Netherlands, and the UK. Meanwhile, Taiwan, Turkey, Kazakhstan, Indonesia, and Japan will see higher percentage growth in millionaire numbers between 2023 and 2028.
The UAE also ranks among the top 15 countries with the highest average wealth growth per adult in local currency from 2022 to 2023. Wealth in the UAE expanded at a 16% annual compound growth rate from 2000 to 2010 and 4% from 2010 to 2023. This growth is evident in luxury property prices, which have soared due to the influx of high-net-worth individuals post-pandemic. Knight Frank reported a nearly 50% drop in prime home listings in the second quarter of 2024 to 2,851 compared to the same period last year. Swiss bank forecasts a 15% increase in millionaires in Saudi Arabia over five years, reaching 403,878 in 2028 from 351,855 in 2023.
Globally, wealth growth rebounded by 4.2% in 2023 following a 3% contraction in the previous year. This rebound compensated for the 2022 losses, driven by growth in Europe, the Middle East, and Africa (EMEA) at 4.8% and Asia-Pacific (APAC) at 4.4%. In 2023, EMEA adults were the wealthiest on average ($166,000), followed by APAC ($156,000), and the Americas ($146,000). "Wealth requires careful management and proper handling demands time, dedication, and passion. As the world's only truly global wealth manager, we comprehend the shifts in global and local wealth and convert this into opportunities and outcomes for our clients," said Iqbal Khan, co-president of UBS Global Wealth Management.
