Governments around the world are racing to attract the wealthy. Dubai seems to be the front-runner. It is attracting the elite in record numbers.
Dubai offers stability. It offers a pro-business environment. It also offers luxurious lifestyle attractions and progressive policy changes. That mix appeals to affluent individuals and families. Image: Shutterstock
The super-rich are flocking to Dubai in record numbers. Geopolitical and economic uncertainties are rising worldwide. Affluent individuals and families want safe havens for wealth and well-being.
Experts who track the world’s wealthiest point to more than stability. Dubai also offers a pro-business environment. World-class lifestyle attractions matter. Luxury real estate matters. Progressive policy changes also smooth the path to longer-term residency.
Dubai is now home to 210 centi-millionaires. These are individuals with a net worth exceeding $100 million. It is also home to 15 billionaires, according to Henley & Partners. The firm specialises in global residence and citizenship planning. Forecasts show the city is well placed to cement that status.
The firm reported in their 2023 Centi-Millionaire Report that Dubai’s centi-millionaire population is projected to surge by 78 percent over the next decade. That would be the fastest rate worldwide.
Philippe Amarante is Managing Partner of Henley & Partners. He also heads the firm’s Dubai and Pakistan offices. He attributes the city’s magnetism to “wealth created in both less developed and more developed markets.” These investors seek safer harbours. Geopolitical instability drives that search. Tax concerns in Europe also drive it. Bipartisan tax debates in the United States add pressure too. For these global elites, “optionality is key” to preserving wealth.
At the same time, said Amarante, Dubai deploys an impactful “superbrand” narrative. It emphasises safety. It emphasises ease of entry and business. It highlights world-class lifestyle perks from education to real estate. It also stresses a strategic global business hub position. That differs from rival destinations like Singapore, which have a stronger Asian focus. Dubai also gained attention for keeping borders open during pandemic lockdowns. That projected an “open for business” message. Other locations looked more closed.
This strategy has paid dividends. Amarante observes an “avalanche effect.” Early centi-millionaire arrivals snowball into larger migration waves. Wealthier social networks gravitate toward each other. “These people like to be surrounded by themselves.”
Dubai is home to a substantial number of centi-millionaires and billionaires. Image: Shutterstock
Once obscure, many wealthy individuals from mature markets “didn’t really know Dubai that well.” Pandemic trips and business visits often changed that. Many then shifted to permanent moves.
One key catalyst for wealth migration to Dubai has been its Golden Visa programme introduced in 2019. Veronica Cotdemiey is CEO of Citizenship Invest. She credits the long-term residency initiative for “bolstering investor confidence and creating an attractive environment.” That has made the UAE a leader in global residency-by-investment. Places like Portugal once dominated that space. Official figures show more than 150,000 Golden Visas issued so far.
However, Amarante expressed a different sentiment. He believes the Golden Visa is no longer as aspirational as it once was. Neighbouring Gulf countries like Saudi Arabia, Qatar and Bahrain now provide Golden Visas too. The real appeal, he said, is the “long game”: permanent residency.
“That’s the elephant in the room. Will the UAE at some point be so innovative that there may be a process for people to get naturalised one day? That’s maybe the long game here. The government may want to consider an evolution of the Golden Visa, which is probably permanent residency,” he said. He added that this would help cement the city’s appeal to the super-rich even further.
“If they one day decide to give permanent residence, this would double the number of people coming into the UAE.”
Over 150,000 Golden Visas have been issued so far, making the UAE a leader in the global residency-by-investment realm
According to Cotdemiey, Russians are now the fastest-growing investor nationality in Dubai this year. Many use real estate tied to residency permits. The war with Ukraine has accelerated that move.
In 2022, Russians made up less than 2 percent of UAE residents. That figure has grown to 6 percent of all UAE-based investors so far this year, she added.
Chinese investors show the same pattern. Their real estate activity in the country surged 130 percent since 2021. Real estate firm Allsopp & Allsopp reported that rise. The upcoming casino in Ras Al Khaimah is a major driver.
Interest is also rising from South Asia. Africa and Central Asia show the same pattern, according to her analysis.
The Golden Visa “has bolstered investor confidence and created an attractive environment for foreign investors, entrepreneurs and talented individuals who seek stability and opportunities within the country,” said Cotdemiey. She noted strong interest among high-net-worth clients in residency by investment.
“Traditionally, European countries like Portugal, Spain, and Greece were considered the primary choice for such programs. However, the UAE’s Golden Visa has successfully challenged this status quo. This is evident with the 152,000 Golden Visas issued between 2019 and 2022 as announced by The General Directorate of Residency and Foreigners Affairs (GDRFA),” she added.
Most enquiries in this category at Citizenship Invest were for real estate investment, the CEO said.
Nikita Kuznetsov is CEO of premium real estate firm Metropolitan. He says uber-luxury residences in Dubai have reached an unprecedented level. He points to “prevailing uncertainty in western markets, Russia and Asia.”
“Wealthy individuals are actively seeking safe havens that can safeguard and enhance their investments.”
Faisal Durrani is Head of Research MENA at Knight Frank. He said Dubai has become a key second-homes market for high-net-worth individuals.
“In our 2023 Destination Dubai report, we found that 66 percent of the world’s wealthy would like to purchase a second home in Dubai. And when considering factors that are most likely to influence their decision making, which access to green space emerged as the most important consideration for global HNWI targeting Dubai, hospital access was ranked as the second most important factor.”
As newer waves settle, networks expand. Dubai’s diversifying demographic mosaic will attract more people seeking a shared future.
Henley & Partners’ Amarante highlighted differences between governance in Dubai and other nations.
“I’m European, and I look critically at the political process that exist in those old democratic states because there’s a lack of collaboration between citizens, civilians and the political apparatus.”
He also listed issues in other regions. Knife crime is rising in the UK. Right-wing extremism is rising in Germany and Italy. France faces cultural and religious conflict. Argentina faces economic disaster. Japan faces dropping birth rates. China faces government overreach on private wealth.
Dubai uses participatory decision-making. Leadership brings sectors together. That creates collaboration. It also gives people a voice in shaping the city’s future. Image: Shutterstock
Dubai, meanwhile, addresses challenges through a collaborative process “that makes people feel like they have a say.”
“In the UAE, you have the leadership constantly bringing various sectors together and asking questions, so there’s a dialogue; it’s a two-way street and it’s very successful,” he said.
This participatory governance drives confidence among wealthy individuals and investors.
“The world is really faced with deep challenges and here in Dubai, you may have some challenges but they are addressed and they are addressed in partnership in a way that makes people feel like they have a say. This makes people want to commit and be part of this journey. They want to invest and stay, and there’s all the instruments available for them. So it’s a phenomenal story,” he added.
Progressive reforms matter. Participatory decision-making matters too. Together they have cemented Dubai’s status. It remains a leading destination for mobile capital. Investors seek returns. They also seek political reliability.
