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UAE set to see world’s second-largest influx of millionaires in 2023

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Nearly 4,500 millionaires are expected to relocate to the UAE in 2023, making it the world’s second-largest destination for high net worth individuals (HNWIs). Australia is the most popular destination, with 5,200 millionaires worldwide choosing it as their home, according to a recent report.

The 2023 Henley Private Wealth Migration Report says net HNWI inflows to the UAE in 2023 will surpass the previous year’s figure of 4,000.

In addition, the net outflow of millionaires from the UK will exceed Russia This year has seen changes in government policy to remove permanent non-resident tax status as wealthy individuals flee the country’s post-Brexit economic landscape.

Nearly 3,200 millionaires are expected to leave the UK this year, while 3,000 are expected to leave Russia.

Only China and India will see more HNWIs leave, with net losses of 13,500 and 8,000 millionaires respectively.

The total number of millionaires leaving the UK is expected to double to 1,600 by 2022, the report said.

Singapore will rank third in 2023 with a record net inflow of 3,200 HNWIs, followed by the US with an estimated net inflow of 2,100 millionaires.

The next most popular destinations will be Switzerland, Canada, Greece, France, Portugal and New Zealand. Israel is expected to drop out of the top 10 with a net millionaire inflow of 600 compared to 1,100 in 2022.

Dr Juerg Steffen, chief executive of Henley & Partners, said the number of millionaire immigrants had grown steadily over the past decade, with global figures expected to be 122,000 in 2023 and 128,000 in 2024.

“Overall, wealth migration trends look set to revert to pre-pandemic patterns this year, with the notable exceptions of the former top wealth attractors, the UK and the US,” Steffen said.

Steffen said the UK’s peak net outflows came in 2017, after the 2016 Brexit referendum, when Britain voted to leave the EU.

“While net losses declined slightly between 2017 and 2019, forecasts for 2023 suggest that a larger millionaire exit is now underway,” the report said.

Brexit and the government policy of removing permanent non-domiciled taxpayer status have made the UK less hospitable and welcoming to wealthy individuals.

Sunita Singh-Dalal, private wealth and family office partner at law firm Hourani & Partners, said of unprecedented political turmoil, rising debt, a dysfunctional healthcare system, high crime rates and a lingering sense of general malaise, ” Apparently sullied the “glory London” of high net worth individuals.

The U.S. is also less popular among immigrant millionaires than it was before the pandemic, partly because of the threat of higher taxes, the report said.

It still attracts more high-net-worth individuals than it loses in immigration, with a projected net inflow of 2,100 in 2023, although that figure has fallen from a net inflow of 10,800 in 2019.

Brazil, Hong Kong, South Korea, Mexico, South Africa and Japan are the rest of the top 10 countries losing the most millionaires in 2023.

(Reporting by Imogen Lillywhite; Editing by Seban Scaria)

imogen.lillywhite@lseg.com

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