Why Wealthy Brits Like Lakshmi Mittal Are Moving to Dubai: Tax Shifts & Trends
A significant wealth migration is underway, with the United Arab Emirates—and Dubai in particular—emerging as the premier destination for affluent British citizens. Drawn by a favourable fiscal environment, political stability, and investor-friendly policies, the trend is powerfully illustrated by the recent relocation of industrialist Lakshmi Mittal from London to the UAE.
The UK’s Declining Appeal: A Tax Trigger
The catalyst for this shift stems from major policy changes in the UK. The abolition of the “non-domicile” tax status, which once exempted foreign nationals from UK tax on overseas income, removed a key attraction for international residents.
Further proposed reforms under the expected 2025 Budget have alarmed the ultra-wealthy. These include a steep “exit tax” for those leaving the UK, a “mansion tax” on high-value property, and heightened inheritance taxes potentially applied to worldwide assets. For globally mobile families, these changes create untenable uncertainty for long-term wealth planning.
Dubai’s Compelling Proposition
In stark contrast, Dubai offers a powerful package of financial and lifestyle benefits:
Zero Personal Tax: No income, capital gains, inheritance, or wealth taxes.
Regulatory Stability: A predictable legal environment ideal for wealth preservation.
Global Hub: Strategic connectivity between Europe, Asia, and Africa for business.
Premium Lifestyle: World-class infrastructure, safety, and a cosmopolitan expat community.
This combination moves Dubai beyond a simple tax haven to a desirable, stable home base.
Lakshmi Mittal’s Symbolic Move
The decision by steel magnate Lakshmi Mittal, once a long-time London resident and among Britain’s richest, is a bellwether. Reports confirm his purchase of substantial real estate on Dubai’s Nāia Island, signalling a full commitment to residency relocation. Financial advisers note the primary driver is not income tax but the UK’s increasingly heavy inheritance and estate tax regime.
The Bigger Picture: Global Wealth Flows
This trend is quantified in Henley & Partners’ 2025 Private Wealth Migration Report. It projects approximately 16,500 millionaires will leave the UK this year, taking an estimated $91.8 billion in capital. Meanwhile, the UAE is poised to welcome about 9,800 millionaires with nearly $63 billion in associated assets.
The narrative is clear: traditional hubs like London are seeing their appeal erode under tax pressure, while destinations like Dubai with clear, stable regimes are becoming magnets for the global elite. For those with family offices and international interests, Dubai offers advantages few can match, creating a self-reinforcing cycle of investment and growth.
In summary, Lakshmi Mittal’s move is more than a personal relocation. It signifies a fundamental reassessment by the ultra-wealthy of residency, taxation, and security. As the UK and others tighten fiscal policies, Dubai increasingly provides the clarity and freedom that traditional financial capitals no longer guarantee.
