Could Relocating to the UAE Transform Your Financial Future?

In the world of private clients and wealth management, the UAE is swiftly becoming a hot topic. The country is seen as one of the most stable and dynamic destinations that not only offers unrivalled financial advancement opportunities but also a quality of living experience that is hard to beat. So what is it about the UAE that is attracting so many HNWIs, their families and their businesses?

Enviable Stability

Uncertainty is never a welcome bedfellow when it comes to the financial world and economic growth. The tectonic shift of the pandemic and unsettling geopolitical upheaval in the years following have upended the traditional perceptions of where is considered ‘safe’ for assets and investment. The swift and comprehensive action of the UAE government to curtail the impact of Covid was one of the most effective in the world, enabling the country to welcome back regular visitors far ahead of others. That reality, coupled with the regulatory changes post-2008 and an evolvingly progressive approach to innovation have transformed the way the UAE is viewed by HNWIs, business leaders and investors around the world. Today, the UAE offers a unique level of security and safety, seemingly able to withstand most challenges and remain unaffected by conflict situations. In terms of wealth management and future prospects, this combination is likely to mean a lot for private clients and HNWIs who want to grow their assets and provide the best protection for their family.

Talking Economics

Undoubtedly one of the key reasons that HNWIs are considering UAE relocation is a financial one. This is especially true for private clients from the UK. The upcoming UK budget, just days away at time of writing, is expected to be focused on generating deficit reducing revenue streams and could therefore include many elements that would impact wealth management for higher earners. Current predictions on domicile rules, pensions, capital gains and inheritance taxes are likely to increase the appeal of destinations like the UAE. Richard Jordan, Partner at Trowers & Hamlins shares details on how this is shaping the type of enquiries they are facing, “the tax burden in the UK is at record levels, but the deficit will grow unless further tax is raised, or efficiencies are made. As the new government has signalled its intention to increase the contribution levels on higher earners, there is an increased risk of tax migration, which is not difficult for those with significant wealth. Since the top 1% of earners already pay c.30% on the UK’s income tax and the top 100 of these pay about 1% of all income tax, further increases on the wealthy are likely to benefit other jurisdictions like the UAE.” The UAE offers a variety of appealing features for private clients and HNWIs, from enviable taxation systems to luxury real estate. The UAE real estate market has recently hit a 10-year high “attracting an influx of HNWIs from India, Russia, the UK and more”, Eileen Duncan also from Trowers & Hamlins is based in the UAE and outlines what makes the UAE real estate market such a popular investment destination “if you look, for example, at Dubai, the residential market has seen steady growth in rents and sales prices (both in relation to off plan sales and the secondary market) since the pandemic.  As part of Dubai’s vision for 2040, key objectives include increasing the land available for hotel and tourist activities, upgrading the urban areas and their connectivity, and continuing to encourage foreign investment.  All of this, plus the population being forecast to increase from approximately 3.7 million today to 5.8 million by 2040, provides an attractive background for investors“.

Quality & Value: Lifestyle Factors

One of the first words that could be accurately applied to any descriptor of the lifestyle to expect in the UAE is diversity. And not just in terms of population. With an expat population of nearly 90%, the residents are an eclectic mix of ethnicities and backgrounds, all living and working together, sharing cultures, traditions and customs. But that diversity also extends to all joys of life, from entertainment to cuisines, leisure activities to shopping and more. The UAE has almost every possible restaurant type, a hugely busy social calendar of events and endless venues to explore. When not working or in school, residents have their pick of options from waterparks to community sports, desert safaris to concerts, sky diving to Sunday roasts alongside the golf course. New expats often also find themselves surprised at how far their money will stretch, finding that they can live extremely comfortably at a fraction of the price it would cost them elsewhere. Whether that is a gorgeous villa they can rent at less than the price of a one-bedroom apartment in London or being able to dine out at Michelin quality restaurants without having to save up for a special occasion.

As world events continue to shape the future in different ways, the UAE’s security, ambition and inclusivity will undoubtedly keep it at the forefront for those considering making a change. It seems that now is the time to find out if it could be the right fit for you?

If you would like to find out more about the opportunities available in the UAE, the UAE relocation process, visa services and immigration solutions, please get in touch with our expert team today on +971 (0)4 421 1819 or info@eerme.com.