عربي
Earn 2,000 AED
In terms of investment potential, the United Arab Emirates is unrivaled. The United Arab Emirates (UAE) and Dubai, in particular, have experienced dramatic growth in highly wealthy people in recent years. Similarly, this has directly affected the number of businesses willing to invest in the city.
According to the latest data from New World Wealth, Dubai is the most prosperous city in the UAE. Aside from that, the United Arab Emirates (UAE) has the highest per capita income among MENA countries. Furthermore, Dubai ranks 23rd on the ECA’s cost-of-living index. It is forecasted that by 2026, the UAE’s financial wealth will have increased by a compound annual rate of 6.7% to a total of $1 trillion.
High inflation and an uncertain economic scenario drive millionaires out of the major industrialized economies. It leads to increased investor interest in GCC nations, especially the UAE.
Approximately 4,000 highly wealthy people are expected to come to the United Arab Emirates this year. This tremendous growth from 1,300 millionaires in 2019 demonstrates the UAE’s success in attracting private wealth, capital, and talent. Furthermore, UHNWIs (individuals with a net worth of $30 million or more) account for roughly 41% of the UAE’s total wealth and may account for 43% by 2026.
Why has there been such dramatic growth in the number of wealthy people and businesses choosing Dubai as their location for expansion and investment? Let’s dive deep into it.
For What Reasons Do the UAE Attract So Many Wealthy People?
1. A Rise in Prominence for the UAE
The United Arab Emirates (UAE) has rapidly adapted to changing immigration policies over the past several decades to capitalize on the growing tourism and trade industries there. Those with an eye on making a monetary investment often move abroad in search of better business opportunities and desirable living conditions.
The United Arab Emirates (UAE) leadership during the pandemic and its advocacy for the advantages of competitive tax rates have earned widespread notice around the world. HNWIs interested in investing in real estate and industry are increasingly drawn to regions with strong economic and social growth.
2. Economic Development and New Business Opportunities
Because of the current economic and corporate incentives established to stimulate Foreign Direct Investment (FDI), the United Arab Emirates has become a popular residential destination for the world’s high-net-worth people.
Investments in cutting-edge technology and environmentally responsible practices achieved a global high point at Expo 2020. However, the Ministry of Economy has implemented initiatives to entice the world’s finest entrepreneurs and investors, including a simple procedure for establishing a company and flexible commercial and residential leasing options. Capital, digital asset entrepreneurs, extraordinary skills, private wealth, and foreign investments are all drawn to progressive and competitive strategies.
According to a recent study, equity and investment fund growth is expected to average 8.8 percent each year through 2026. Compared to other world-famous metropolises like London, Tokyo, and New York, the United Arab Emirates is the only country that specifically caters to the ultra-wealthy.
3. The UAE Economic Incentives Efforts
More opportunities exist for high-net-worth individuals to immigrate to and invest in the United Arab Emirates because of the country’s business-friendly environment. There are more than 50 free zones in the UAE, and they all have strong linkages to regional and international trade organizations. It has free trade agreements with the European Union, Singapore, and the European Free Trade Association.
The United Arab Emirates (UAE) offers a more enticing environment for entrepreneurs, business owners, and independent workers because of its business-friendly environment and numerous options for HNWIs to relocate and invest. With the availability of these economic free zones, investors can take 100% ownership stakes in any of the more than 2,000 licensed commercial businesses in the free zones.
4. Favorable Legal Environment
The United Arab Emirates’ regulatory system has been upgraded regularly to attract more international trade and investment. However, the country made what may be its most significant move yet last year when it legalized the full foreign ownership of enterprises in various economic sectors. This change meant foreign investors no longer needed to find a local partner.
“Projects of the 50” also calls for ongoing reforms to the immigration and residence processes to attract skilled people in critical sectors like the health, scientific research, technology, and cultural industries.
5. UAE Emerges as a Business Hub
The United Arab Emirates (UAE) could serve as a Launchpad for expanding into other major global markets. Investors are enticed to establish a business there by the country’s adaptable economy, progressive administration, and many prospects.
The most common ways for millionaires to hold their wealth are in the form of business assets and investments, followed by stocks and real estate. Despite the United Arab Emirates (UAE) emphasis on the oil and gas industries, other markets present prospects for commercial investment.
Insurance and trade are two of the most popular financial industry sectors. Companies in the information technology sector specialize in app development, virtual reality (VR), artificial intelligence (AI), and digital marketing benefiting greatly from the increasing demand for these services.
High-net-worth individuals are drawn to the United Arab Emirates (UAE) to expand their tourism and hospitality ventures, such as opening luxury outlets, resorts, and hotels amid the country’s diverse tourist hotspot.
Increased Support for Visa Reforms
To encourage high-end projects and investments, the United Arab Emirates (UAE) has created new immigration laws and residency permits, making the country an ideal location for groundbreaking investment.
With the introduction of the golden visa in 2019, the government intended to attract wealthy foreign investors and individuals with high levels of personal wealth to establish long-term residency in the country. Those who qualify for the 10-year permanent residency scheme will automatically renew their status each year. Green visa holders can stay in the country with their families for five years without finding a sponsor. Those who wish to apply for a business visa can do so by founding a firm or investing in any of the Emirates.
To entice high-net-worth retirees and expats to invest and retire in the emirate, Dubai offers a retirement visa that grants the retiree and their spouse or dependents renewable permanent status in the country for five years.
The visa regulations have been altered in a mutually beneficial manner to encourage high-net-worth individuals to invest and eventually settle in a country. In addition, if you deposit at least AED 2 million in a UAE bank for a minimum of 3 years, you can get a Golden visa that will last you for 10 years.
The United Arab Emirates (UAE) adaptable strategy encourages investment mobility as high-net-worth individuals seek out investment and business opportunities for growth, travel flexibility, living standard, and wealth perseverance with legal protection.
Capitalize on the UAE with ExpressPRO
ExpressPRO’s business setup professionals can aid high-net-worth individuals in the United Arab Emirates in looking for opportunities. Our experts are well-versed in all facets of living and working in the UAE. Whether it’s rules and regulations, legislation, setting up a business, acquiring a visa, or exploring investment possibilities.
We can provide you with the knowledge you need to set up a business or make an investment choice. In addition, our professionals will personally take care of all the paperwork and other requirements, guaranteeing there will be no hiccups. We can provide custom business options to meet your specific requirements. Call us, and we’ll take care of everything for you.
