In the post-pandemic era, Dubai’s HNWI population has grown by 18% and remains the number one in the MENA region.
The UAE has emerged as an attractive destination for high net worth individuals (HNWIs), which will help its financial wealth grow at a CAGR of 6.7% to exceed US$1 trillion by 2026, says a new report .
The emirate’s financial wealth rose 20 percent to $700 billion last year as it recorded a net inflow of more than 2,000 millionaires following its successful strategy to contain the Covid-19 pandemic.
“Unprecedented government stimulus, a low interest rate environment, increased liquidity, rising stock markets and widespread Covid-19 vaccination drive global economic resilience in 2021 and accelerate HNWI population and wealth growth,” said a report from Dash Venture Labs. growth of.”
According to the report, the global HNWI population will grow by 7.8% in 2021, adding 1.7 million HNWIs. Wealth will grow a further 8% in 2021 to reach $6.4 trillion.
In the Middle East, the population and wealth of wealthy individuals grew by 5.5 percent and 6.3 percent, respectively, the report said.
“This growth is largely led by Israel and the United Arab Emirates, both of which are seeing higher-than-global HNWI wealth and population growth in 2021 due to their increased focus on the tech sector and a recovery in oil prices,” the report said.
According to Shailesh Dash, founder of Dash Venture Labs, there are several reasons why high net worth individuals (HNWIs) are flocking to the UAE post-pandemic, mainly the tax-friendly environment, strong economy, world-class infrastructure and its strategically combined location .
“Dubai’s HNWI population grew by 18% in the post-pandemic era and firmly holds the No. 1 position in the MENA region,” said Dash.
To a question, he said recent changes in UAE visa policy, including the introduction of long-term visas for students, skilled workers and wealthy investors, were just the beginning of a new era of attracting talent, skills and investment. nation.
“These changes are part of the UAE’s broader efforts to create a more attractive and competitive environment for international talent, business and investment. The country recognizes that a diverse and skilled workforce and a strong entrepreneurial and investment community are major drivers of economic growth and competitiveness,” Dash said.
The Dubai International Financial Center (DIFC), the leading international financial center in the Middle East, Africa and South Asia (Measa) region, recently announced the opening of the world’s first global family business and private wealth center as part of its Contribution to UAE economy doubled.
The new wealth center is expected to host family businesses and ultra-high net worth individuals – with net assets of 3,000 or more – from the UAE and the wider Mesa region and beyond, at a time when investors are looking for safe, secure and stable investment opportunities $10,000 guy – take to DIFC place.
“The UAE, especially Dubai, still has a lot to offer HNWIs, it continues to invest in luxury real estate, diverse entertainment options, innovative technology and a stable political environment. Golden visas, green visas and investor visas, etc., Just the beginning of a new era to attract talented students, technologists and wealthy investors,” Dash said.
Ravi Krishnan, managing director of Dubai-based business consultancy Ascent Partners, said the UAE has been proactive in tackling the pandemic by effectively rolling out a vaccine and striking an effective balance between safety precautions and opening up the economy without delay. set the country apart from the rest of the world.
“While the UAE has been seen as a major hub for wealthy individuals from the Middle East, South Asia and Africa, its stellar handling of the pandemic has attracted wealthy individuals from non-traditional regions,” Krishnan told Khaleej era.
Referring to the recent geopolitical crisis in Russia and economic challenges in much of Europe, he said geopolitical tensions and economic challenges have prompted more wealthy individuals to establish backup bases in the UAE. “For individuals from anywhere in the world, the possibility of living and working in a country that offers unparalleled safety, security and opportunity is a huge draw,” he said.
Hatem El Safty, CEO of Business Link, echoed similar sentiments, saying that many millionaires and foreign investors have shown interest in doing business in the UAE.
“We are noticing a surge in business inquiries as investors show interest in the UAE following successful Covid strategies and recent visa reforms. High net worth individuals are likely to relocate to the emirate and expand their business operations in the region” El Safty explain.
“At Business Link, we’ve noticed an increase in inquiries to e-commerce and IT-related industries since the pandemic hit the global economy two years ago,” he said.
Krishnan said the UAE leadership has shown the world that the country welcomes people from all over the world who can aspire and achieve in a non-bureaucratic environment.
“Almost without exception, high net worth individuals are those with an entrepreneurial gene and thus thrive in countries that offer the freedom to think big, implement bold ideas and foster innovation,” he said.
The UAE has also shown its openness to change in attracting investment and talent, he said.
Referring to the revised Business Companies Law on foreign ownership in the mainland and the introduction of SPVs as a type of legal entity, he said today that it is possible to set up foundations and register wills in the UAE according to English common law standards.
“Any sophisticated investor will easily understand the possibilities that this regulatory choice opens up,” he said.
Responding to a question, he said the various types of visas – golden, silver and investor visas – would help bring skilled labor and wealthy investors to the UAE.
“Of course. The new visa regime makes it possible for more people to immigrate to the UAE and contribute more broadly to its development goals. Telework visas and retirement visas are other visa types that cater to the aspirations of those wishing to live In the UAE,” he said.
“Over time, a new pool of talent and wealth will mean greater collective prosperity for all who call the UAE home,” Krishnan said.
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