The United Arab Emirates (UAE) is poised to become the world's leading destination for millionaires for the third consecutive year, according to the Henley Private Wealth Migration Report shared by CNBC.

This is after the United Kingdom, a major source of the UAE's expatriates, is expected to see a 17% decline in its millionaire population by 2028. Expats were mostly driven by a combination of rising taxes and costs in the UK, compared to the allure of Dubai's tax-free environment and luxurious lifestyle.

Karim Jetha, an investor who moved from the UK to the UAE during the pandemic, explained why many wealthy people are leaving the UK and moving to Dubai. He stated that higher taxes in the UK, like a new tax on private school tuition, is driving many wealthy individuals to look for better options elsewhere. 

At the same time, Dubai's safe environment and new visa policies make it an appealing place for people to relocate.

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Wealthy Individuals in UAE

The Henley report projects a record net inflow of 6,700 millionaires to the UAE by the end of 2024, nearly double the 3,800 expected to move to the United States. 

As previously stated, it's mainly due to UAE's golden visa program, which offers long-term residency for foreign nationals. 

The report also notes that the majority of these wealthy migrants hail from India, the Middle East, Russia, and Africa, with an increasing number of British and European nationals joining them.

In contrast, the UK is projected to see a decrease in its millionaire population, from over 3 million last year to approximately 2.5 million by 2028. The phasing out of the "non-dom" tax status, which previously allowed wealthy foreign residents to avoid British taxes on overseas income, is expected to accelerate this decline. 

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