The meeting featured Felipe Amarante, Managing Partner at Henley and Partners Middle East, discussing the latest global wealth migration trends.
A record 142,000 millionaires are expected to relocate internationally in 2024, with the UK, China, India, South Korea, and Russia seeing the largest outflows.
The UAE is projected to attract the highest net inflow of millionaires, largely due to regulatory reforms, an appealing investment climate, and lifestyle advantages.
The discussion also covered Saudi Arabia's emerging appeal and the effect of regional geopolitical tensions on investor sentiment, particularly compared to the declining attractiveness of the UK for high-net-worth individuals.
Action Items
No action items were discussed or assigned during this meeting.
Global Wealth Migration Trends
The rate of millionaire relocation is accelerating, with 142,000 expected to move internationally in 2024.
Main drivers include a desire to de-risk, hedge assets, and seek stability amid global volatility.
Wealthy individuals view residency options as part of broader diversification and risk management strategies.
UAE's Growing Appeal
The UAE is expected to see a net inflow of 9,800 millionaires, maintaining its status as a top "wealth magnet."
Key factors: streamlined relocation processes, minimal bureaucracy, regulatory reforms, tax-free lifestyle, safety, strong business environment, and the golden visa program.
Positive sentiment and attractive opportunities differentiate the UAE from Western markets experiencing uncertainty.
Saudi Arabia's Rise as a Destination
Saudi Arabia has emerged as a significant new draw, with 2,400 millionaires expected to relocate there.
The country's economic and social transformation, new investment residency options, and major development projects are making it increasingly attractive.
The government’s focus on retaining talent and capital is contributing to this trend.
Impact of Regional Geopolitical Tensions
Recent conflicts (e.g., Israel-Iran) have caused some nervousness, but the UAE’s perceived safety and resilience have maintained investor confidence.
There has been no significant panic or asset flight from clients in the region as a result of recent geopolitical events.
The Gulf States' efforts to diversify and stabilize their economies continue to make them attractive despite broader regional challenges.
Decline of the UK as a Wealth Hub
The UK is projected to experience a record outflow of 16,500 millionaires in 2024.
Contributing factors include increased taxes, regulatory unpredictability, political instability (including Brexit), and negative sentiment about the country’s direction.
High-net-worth individuals prioritize reliability and predictability, now lacking in the UK compared to other destinations like Monaco and the UAE.
The UK’s global brand has diminished, causing a ripple effect as millionaire departures accelerate.
There is optimism for eventual regulatory improvements and recovery, but the UK is not currently seen as investor-friendly.
Decisions
No decisions were made or recorded during this meeting.