For the fourth consecutive year, the UAE has emerged as the world’s leading destination for high-net-worth individuals (HNWIs), according to Henley & Partners’ 2025 Private Wealth Migration report. The net inflow of 9,800 millionaires projected for this year is higher than any other country globally, outpacing perennial competitors such as the US, Singapore and Switzerland. But, why millionaires are moving to the UAE?
This influx highlights more than a statistical milestone. It reflects a structural reordering of global private capital flows, where traditional wealth hubs are losing ground to jurisdictions that offer a blend of tax efficiency, regulatory sophistication, and lifestyle benefits.
“The UAE remains a top destination for HNWIs and global professionals due to its growing status as an international financial centre, cosmopolitan population, and competitive tax environment,” said Tony Smith, Head of Tax, Technical and Advice Delivery at St. James’s Place Asia & Middle East. “Coupled with a thriving job market, wide use of the English language, and the attractive lifestyle on offer in centres such as Dubai and Abu Dhabi, the UAE remains a magnet for overseas wealth and an increasingly easy place for people to relocate to.”
Since 2014, the number of millionaire residents in the Emirates has grown by 98%, fuelled by a combination of domestic policy decisions and external economic shifts. The country is now firmly positioned as a base for global wealth management and multi-generational planning.
Economic resilience
The UAE’s appeal is underpinned by macroeconomic stability and resilience. While many economies have been grappling with stagnation, the Emirates have maintained momentum, thanks to diversification strategies that have reduced dependence on hydrocarbons.
“The UAE has maintained momentum through ongoing investment in non-oil sectors such as real estate, technology, and financial services,” noted Paul Rooney, Senior Principal and Co-Head of Investment Advisory at Mercer IMEA. “The IMF forecasts GDP growth of approximately 4% in 2025 and 5% in 2026, supported by political stability, continued trade flows, and proactive policy frameworks around innovation and AI. This consistent performance reinforces the UAE’s position as a safe and attractive domicile for long-term wealth planning.”
Rooney pointed to the importance of the UAE’s currency peg to the US dollar. “The peg reflects sound fiscal policy and reinforces investor confidence in the UAE’s external accounts and monetary management,” he explained. “It eliminates exchange rate uncertainty for USD-denominated investors and aligns interest rate movements with the world’s reserve currency.”
Tax policy
At the heart of the UAE’s magnetism is its tax environment. Zero personal income tax, no capital gains tax, and no inheritance tax make it one of the most favourable regimes globally.
“In terms of its comparative pull with nations such as Switzerland or Italy, there is no parallel,” noted Smith. “These countries have progressive income tax regimes, capital gains tax, and inheritance taxes. Singapore remains highly competitive due to its low effective tax rate by OECD standards and its absence of capital gains and inheritance taxes, but the UAE’s combination of fiscal benefits and regulatory frameworks gives it a distinct advantage.”
The UAE’s Golden Visa scheme, offering 10-year residency with fewer physical presence requirements than many competitor regimes, has added to the appeal. “The long-term duration provides certainty to investors,” said Smith. “It’s more flexible than rival programmes, giving individuals greater freedom over travel and residence.”
The changing profile of migrating wealth
Henley’s data reveals that the sources of inbound wealth are diversifying. While the UK, Russia, and China remain key contributors, there is growing interest from India, Saudi Arabia, and other emerging economies.
“We’re seeing a clear shift in how HNWIs and UHNWIs from key growth markets view the UAE, not just as a lifestyle destination but as a long-term base for wealth preservation, family planning, and global connectivity,” explained Smith.
Dubai attracts younger entrepreneurs and those seeking high-energy business networks, while Abu Dhabi is favoured by clients seeking cultural depth and stability. Ras Al Khaimah is also emerging as a contender, with its expanding free zone infrastructure and improved global connectivity.
Crucially, wealth migration is no longer the preserve of the ultra-rich. “We’re also seeing regular mums and dads, as well as business owners who don’t necessarily fall into the ultra-wealthy category, relocating to the UAE,” said Smith. “This is making the market more diverse and integrated into the broader economy.”
Investment migration programmes
Henley estimates that only about 30% of wealthy migrants use formal investment migration schemes like the Golden Visa. For the majority, the decision is based on broader considerations.
“Perceptions of pro-business policy, a transparent and adaptive regulatory framework, climate, quality of education for children, lifestyle and safety are also major draws,” Smith explained.
Rooney added: “This blend of financial and non-financial incentives has redefined the UAE’s position on the global wealth map, even diverting interest from traditional HNWI destinations in Europe and North America.”
Wealth planning
The growing complexity of global tax regimes is shaping how wealthy individuals structure their assets. “We’re seeing greater emphasis on domicile diversification to mitigate geopolitical risk and access alternative legal and tax frameworks,” said Smith. “There’s heightened demand for multi-jurisdictional tax strategies that ensure compliance while optimising cross-border income and investments.”
Estate and succession planning have become increasingly important as first-generation wealth creators look to secure their legacies. The UAE has introduced progressive family office frameworks and trust structures to support these objectives.
Institutional-grade wealth infrastructure
The surge in HNWIs has created demand for sophisticated investment and governance structures. Silva Hanell, Head of Investment Solutions at Mercer IMEA, said that the clients are seeking “support in framing investment policy statements, defining strategic asset allocation, and delivering customised, cost-effective, and tax-friendly portfolio implementation.”
This often involves regulated fund structures, global diversification, and a balanced mix of UAE-based real estate, regional equities, global public markets, private equity co-investments and secondaries to improve liquidity. “Governance, transparency, and disciplined risk management are embedded throughout the process,” Hanell added.
Family offices
Family offices in the UAE are increasingly operating as sophisticated investment entities, leveraging proximity to sovereign wealth funds, private capital pools and institutional investors. Rooney noted that this concentration creates “significant opportunities for direct deals and private market transactions.”
Smith resonated with Rooney’s sentiments and added, “The UAE’s family office and trust frameworks are progressive enough to compete globally while offering the stability and certainty that high-net-worth families need.”
Path to 2026
The UAE’s dominance is being challenged as European and North American hubs roll out new incentives. “To remain the preferred destination for global capital, UAE providers must continue to deliver integrated, customised investment solutions that support multi-jurisdictional strategies,” Hanell explained.
Rooney believes agility will be critical. “As other jurisdictions introduce incentives to attract mobile wealth, the UAE’s advantage will lie in remaining responsive to the evolving needs of UHNWIs,” he said.
Smith agreed. “The UAE’s ability to deliver both lifestyle and business value in a single jurisdiction will be critical to securing its leadership in the next phase of global wealth migration.”
Maintaining the lead
Looking ahead, all three experts agree the UAE must continue to invest in its financial infrastructure, regulatory frameworks and sectoral diversity. Sustaining its competitive edge will require balancing openness with governance, ensuring the wealth inflow benefits both the economy and society.
For now, the UAE’s combination of macroeconomic stability, tax efficiency, and global connectivity keeps it firmly at the centre of global wealth migration trends, but in a dynamic market for mobile capital, holding that position will require constant adaptation.
