Zero taxes and luxury in abundance: Dubai attracts millionaires

Dubai has become the new courtyard of the world for the ultra rich. As luxury brands run to bet their claim, a record wave of millionaires, especially the West, is being installed, attracted to zero Income Tax, political stability and a lifestyle that celebrates extravagance without apologies.

The United Arab Emirates, especially the brilliant Metropolis of Dubai, have long appealed to the rich elites of the region. But according to recent consulting data, a growing number of rich western ones is now joining them.

Henley & Partners, a global consulting specialized in investment migration, estimates that the EAU will attract a record of 9,800 millionaires this year, more than any other country in the world.

An entrance door between Europe and Asia, Dubai is one of the busiest shopping centers, home to an important international airport and a prosperous sea port. Among its 3.5 million residents, 90% of which are expatriates, low -salary workers, social networks and multimillionaire influencers in contrast.

Many of the rich newcomers feel penalized in their countries of origin. “They have been imposed more, they are analyzed more and they are offered less,” said Mike Coad, Skybound Health Management, who advises high network customers in the region.

“In Dubai, wealth is normalized,” he said, contrasting him with what he called the “growing rhetoric against the rich” elsewhere. “In London, my clients whisper when they talk about their income. Here, they can live freely.”

“Best Lifestyle”

Max Maxwell, CEO of Paddco Real Estate, who moved from the United States, shared a similar opinion in the Building Wealth podcast without borders. He said that Dubai “offers a better way of life” for the same income compared to other financial centers.

Hogar of 81,200 millionaires and 20 billionaires, Dubai is among the 20 richest cities in the world.

Beyond tax exemptions, Dubai has low crime, political stability and access without restrictions on luxury services and goods. It also offers a friendly legal environment for business with limited bureaucracy.

“The region allows you to do business with very little bureaucracy,” added Philippe Amarante, director of Henley & Partners.

The “Golden Visa” program of the EAU, which gives ten -year residence to rich and qualified professional investors, has further increased Dubai's attraction.

But critics have noticed deep inequality. While the rich expatriates enjoy a privilege life, poorly paid migrant workers, who make up the backbone of Dubai's economy, often exploitation. Human Rights Watch has warned about “generalized abuse” among this population.

“Buy a complete building”

Dubai's real estate market is booming. Luxury villages, bright skyscrapers, artificial islands and exclusive residential towers dominate the horizon.

According to real estate consultant Knight Frank, 435 houses valued at $ 10 million or more sold in Dubai last year, rather than in New York and combined London. “It is the most active market for ultra luxurious real estate,” said Faisal Durrani, a firm partner.

Durrani said that the rich families of world tax havens, including Monaco and Switzerland, are increasingly transferring their business, family offices and even schools to Dubai. “They are not just buying houses,” he said. “They are looking for $ 100 million apartments, and in Dubai, for that price, you can buy a complete building.”

Mike Coady described the majority of its clients as thirty or forty years professionals: technology founders, family businesses, consultants and fund managers. One of them, a 42 -year -old British technology entrepreneur, moved to the Capital Profit Tax of the EAU on the sale of his company.

Henley & Partners predicts that the United Kingdom will lose a record of 16,500 millionaires this year, many probably went to the Gulf.

Even so, the EAU have had to face global scrutiny. In 2022, the country was put in an international “gray list” due to concerns about opaque financial activity and an influx of Russian capital after Ukraine invasion.

In response, the government took energetic measures against financial crime, extraditing several fugitive and drug traffickers, which finally led to its elimination of Gray's list.

By Aya Iskarani