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UAE Wealth Migration: Latest Trends and Opportunities

  • Writer: Sophie Bell
    Sophie Bell
  • 1 day ago
  • 4 min read
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The UAE has emerged as a premier destination for high-net-worth individuals seeking to relocate from traditional financial centres, with Dubai and Abu Dhabi experiencing unprecedented growth in wealthy migrants. A recent panel discussion at the HNW Advisor London Conference revealed significant shifts in both the demographics and motivations driving this migration.


Changing Demographics of UAE Migrants


The profile of individuals relocating to the UAE has evolved dramatically beyond the traditional ultra-high-net-worth demographic. "We're seeing a lot more now of younger entrepreneurs, tech entrepreneurs who are really attracted to the UAE," explained Hannah Wailoo, Partner at Withersworldwide. This shift includes a substantial migration of middle-class professionals - lawyers, dentists, and entrepreneurs - who are drawn by the ease of establishing businesses and the opportunities presented by the region.


Hannah Wailoo
Hannah Wailoo

Particularly notable is the return of Middle Eastern families who previously educated their children in the UK or America. "There's a definite shift in terms of Middle East GCC families who may have historically next generation left the region," Wailoo observed. The next generation is now choosing to remain in Dubai rather than relocate to European centres like Monaco, as their parents might have done previously.


Key Drivers Behind the Migration

The primary catalysts for this movement are multifaceted. UK tax changes remain a significant push factor, coupled with political uncertainty in the US. However, the UAE's strategic positioning as a business hub connecting Europe, Asia, and Africa has created substantial pull factors.


Safety emerges as a paramount concern for families. "It's an extremely, extremely safe place. You leave your phone on the table whilst you go to the loo in a restaurant, you don't even have to worry about it," noted Daniel Dronsfield, Client Services Director at EER Middle East. This security, combined with relatively low school fees compared to the UK and improving educational infrastructure - including Harrow's planned entry to the market - makes the UAE increasingly attractive to families with children.


Regulatory Framework and Visa Options


Daniel Dronsfield
Daniel Dronsfield

The UAE has systematically dismantled barriers to entry while other jurisdictions have erected them. The introduction of various golden visa options provides 10-year residency certainty with minimal physical presence requirements. "What the UAE's done is made it extremely accessible and easy for people to move," Dronsfield explained. The process, while requiring several months of advance planning due to document attestation requirements, can be completed within five working days once in-country.


Wealth Structuring Innovation


Matthew Duncan
Matthew Duncan

A significant development in UAE wealth structuring has been the rise of foundations, introduced in DIFC in 2017 and ADGM in 2018. These structures have largely replaced the complex arrangements previously used. "Foundations are relatively new... the key for foundations is for a lot of clients who aren't familiar with trusts but are familiar with company structures," explained Matthew Duncan, Partner at Druces.


Foundations offer several advantages: they provide asset protection as separate legal entities, allow founders to retain control as council members, and are more intuitive for clients familiar with corporate structures. However, practitioners warn that foundations may not be recognised in common law jurisdictions like the UK and US, requiring careful structuring for clients with connections to these territories.


Single Family Office Boom

The UAE is experiencing remarkable growth in single-family office establishments. Both Dubai and Abu Dhabi are "rolling out the red carpet" for these structures, with formal regulatory frameworks now in place. The Family Wealth Centre in DIFC and the Tabas programme, targeting 50 large high-net-worth families, demonstrate government commitment to this sector.


This growth serves dual purposes: attracting international billionaires while providing succession planning tools for wealthy Emirati families. "There's a little bit of a bubble that's probably going to burst any time soon in terms of this generation shift," Wailoo noted, emphasising the critical importance of proper succession planning for the local economy.


Practical Considerations and Challenges

Despite the UAE's attractions, practitioners emphasise the complexity of departure planning from the UK. Sarah Farrow, Partner at EY Private Client Services, highlighted the importance of understanding UK residence rules: "Before you get to the ties test, there are automatic UK tests which can catch you, and if you fall into one of the categories of people who are automatically UK resident... you will automatically be resident for the year from day one."


Sarah Farrow
Sarah Farrow

The introduction of 9% corporate tax and VAT has not deterred migration, with clients accepting these relatively low rates. The revenue supports massive infrastructure investment, including the expansion of DIFC and the Etihad Rail project.


Looking Forward


Chris Mourant
Chris Mourant

The UAE's transformation from a regional financial center to a global wealth hub appears sustainable. The combination of strategic location, regulatory innovation, safety, and government support creates a compelling proposition for internationally mobile families. As traditional centers grapple with increasing complexity and taxation, the UAE's streamlined approach to wealth management and business formation positions it as a dominant force in the evolving global wealth landscape.


The consensus among practitioners is clear: this migration trend represents not just a temporary response to external pressures, but a fundamental shift in how and where international families choose to structure their wealth and lives.


 
 
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