The UAE is well-positioned as a leading regional and global wealth management hub, thanks to a combination of factors that make it an ideal destination for global and regional wealth management firms, including strong economic growth, wealth concentration, advanced infrastructure, favourable regulatory environment, tax incentives, strategic location and cultural diversity.
The UAE is becoming increasingly important to wealth management companies from all over the world, given the high concentration of wealthy individuals there, with the number of wealthy individuals visiting the country increasing every year.
According to the latest reports and data from global consultancy Henley & Partners, the UAE ranks 14th in the number of millionaires, on the wealth data list of the world’s best countries for millionaires, as it hosts 116.5 thousand millionaires (people with a wealth of more than one million dollars), 308 people with a wealth of more than 100 million dollars, and 20 billionaires, people with a wealth of more than one billion dollars.
- influx of rich people
According to the latest report on wealth migration, the Henley & Partners report expects more than 6,700 millionaires to flow into the country by 2024, a number that exceeds any other country in the world. According to data issued by the World Bank in early July, the UAE’s per capita share of gross national income, according to purchasing power parity (at current prices of the international dollar), amounted to 83.75 thousand international dollars. The international dollar is a virtual unit used to eliminate purchasing power differences when comparing economies, and the international dollar has the same purchasing power as the US dollar in the United States of America.
The latest update by the World Bank confirmed that the UAE has consolidated its position among the list of the highest-income countries, in terms of per capita national income, according to the “Atlas” methodology, also at current US dollar prices. The World Bank divides the world’s economies into four groups based on income according to the “Atlas” method or methodology, and the groups are divided into (low, lower-middle, upper-middle, and high), and the classifications are updated every year at the beginning of July, based on per capita gross national income for the previous calendar year. The updated income classifications of countries for the fiscal year (July 1, 2024 to June 30, 2025) are based on per capita gross national income for the year 2023. According to the Regional Outlook for the Banking Sector and Capital Markets report from the Dubai International Financial Centre, Dubai has emerged as a preferred destination for global investment companies, hedge funds, and financial institutions, due to its ease of doing business and friendly tax policies. The centre now houses more than 370 wealth and asset management firms, primarily from the Asia Pacific region, GCC, Europe, UK and US.
“The UAE has successfully positioned itself as the new capital of global finance, bridging the gap between East and West through a traditional banking model and a digitally enabled economy,” said Alireza Valizadeh, CEO of Julius Baer, a global Swiss wealth management bank.
Zadeh stressed that both Dubai and Abu Dhabi continue to rise as financial powerhouses with prominent banks, wealth managers, global hedge funds, asset managers, fintech companies and family offices setting up regional offices, cementing the UAE’s position as a prime destination for the global elite.
He pointed out that the country has witnessed rapid growth over the past decades, becoming home to more than 50 commercial banks, two global financial centres, and a legal and regulatory system that is constantly evolving to keep pace with international standards.
- Ease of business
Zadeh explained that the ease of doing business, tax exemption, government policy support, and the security and safety provided by the country played a major role in attracting wealthy individuals and, consequently, wealth management companies. He noted that one of the reasons that made the UAE a global leader in finance is its adoption of technological advancements to guide the finance industry to provide more efficient and improved products and services to provide a seamless customer experience.
“The UAE continues to build on its strong reputation as a fertile ground for professional development, which further attracts talent,” said Dr. Leila Hoteit, Global Chief Executive Officer, Education, Career and Senior Partner, Boston Consulting Group.
She explained that “the UAE’s strategic location, enhanced by security and a progressive outlook, makes it an attractive point for the global workforce.” She stressed that the harmony between exceptional job quality, competitive income and a rich lifestyle makes the UAE a beacon for the ambitious and a pacesetter for the global talent market. (WAM)