Introduction
Dubai’s luxury screams so loud that it has echoed and reached the ears of several billionaires in the past few years. The wealthiest of the seven Emirates, Dubai’s appeal to the ultra-rich and powerful has always been strong. However, things have skyrocketed since 2020. Many of the world’s ultra-rich are moving to Dubai, the capital of the United Arab Emirates, because of the country’s swift response to the COVID-19 pandemic through vaccination drives, its generally stable climate, its great diplomatic relations, its peaceful environment, its robust economy, its positive business acumen, and its low crime rates.
Besides, other elements, such as successful industrial sectors, including finance, oil and gas, travel and tourism, real estate, technology, and healthcare, coupled with a first-class healthcare infrastructure, makes Dubai the ideal abode for those with the ‘dough.’ Furthermore, regarding lifestyle, Dubai is the ‘adult’s Disneyland,’ as world-class shopping centers, restaurants, plazas, etc., inundate the region. Now that we have established the fact that Dubai is not only the rich’s playground but also fast becoming their home, it is time to peruse through some facts and figures.
The Quiet Exodus of the World’s Wealthy to Dubai: Some Facts and Figures
After the COVID-19 Pandemic, a large proportion of millionaires migrated to Dubai.
- According to a study by Henley 7 Partners in 2022, Dubai has 13 billionaires, 202 centi-millionaires, and 67900 millionaires, making it among the wealthiest cities globally.
- Dubai is ranked 23rd globally as the world’s wealthiest city and the first in the Middle East. Besides, it is also among the fastest-growing cities in the Gulf region.
- The 2022 Henley Global Citizens project that 4000 millionaires would migrate to the United Arab Emirates in the near future
- According to Alrata Residential Real Estate 2023, Dubai has 830 UNWIs (Ultra Net worth Individuals) with assets over Dh 11 million.
- Another recent report suggests that 66 percent of UNWHIs that purchased properties in Dubai regard the Emirate capital as their primary residence.
- According to the Dubai Land Department, the volume of property sales in Dubai increased by a whopping 135.5 percent in August 2021 compared to the same month last year. Moreover, villa sales shot up by 124 percent.
Why Are the Ultra-Rich and Wealthy Moving to Dubai: Few Points to Ponder Upon?
We have already perused why the rich and the powerful favor as Dubai their new residence, let us delve further into the topic.
- Excellent Management of the COVID-19 Pandemic – It is tough to impress billionaires and millionaires, but how Dubai handled th global coronavirus pandemic really left many people appreciating the country’s relentless efforts. Vaccines were rolled out instantaneously among the three million residents in Dubai, and PCR tests were cheap and widely accessible. The most appealing part is that the country only suffered a brief lockdown in March and April. Such stellar management of an unprecedented situation was applauded by many, including millionaires who are always looking for a stable environment to set up their enterprises.
- UAE Government’s Golden Visas – Although Dubai and Emirates as a whole handled the COVID-19 situation pretty well, the country suffered a brain drain, as thousands of skilled ex-pats started heading homes as jobs dried up, the cost of living increased, and worries of being stranded abroad increased. However, to reverse the situation, the UAE government began offering ‘golden Visas’ to high achievers, such as successful entrepreneurs, intelligent students, and award-winning actors. Most importantly, individuals with exorbitant wealth can also have a Golden Visa for a sweet price of USD 2.7 million.
- Lack of Income – Lastly, what makes Dubai the most alluring for the ultra-rich is the lack of income tax. When other parts of the world are mooting the wealth taxes to pay for the Pandemic, Dubai becomes a much more appealing option. The absence of wealth tax, favorable investment conditions, and business-friendly policies make Dubai an attractive investment destination.
What Do These Changes Mean For Your Businesses?
Dubai’s sudden preference as the abode for millionaires means far-reaching changes in every aspect. From business dynamics to the spike in the rental index and sales prices, the future seems exciting when it comes to entrepreneurial aspects in Dubai. For instance, the Sheikh is on a mission to transform Dubai into an IT hub like Silicon Valley or Bangalore. Thus, to stay above such changes and make the right business decisions, assistance from experts like Consumer Opinion (C-O) can prove to be transformative.
