Expert: UAE Attracts 350 Millionaires Annually from Africa"

Henley and Partners Report: Country Hosts 116,500 Millionaires, 308 Centi-Millionaires, and 20 Billionaires

Each year, the UAE attracts 350 millionaires from Africa, drawn by its economic stability and high living standards. This migration reflects the UAE's appeal as a prime destination for affluent individuals seeking favorable investment conditions and underscores its role in shaping global wealth distribution.

Over the past decade, approximately 3,500 millionaires have relocated from Africa to the UAE, with an average annual migration rate of 350 individuals. Andrew Amoils, head of research at New World Wealth, noted that the majority of these migrants hail from Africa's leading wealth markets, including South Africa, Egypt, and Nigeria, alongside significant numbers from Tanzania and Algeria.

Amoils highlighted several factors driving this migration trend. First and foremost, Dubai's status as a premier global business and financial hub presents lucrative opportunities for entrepreneurs and investors seeking to expand their ventures. Additionally, concerns over safety and security in various African regions have prompted affluent individuals to seek refuge in the UAE. Moreover, the allure of lower taxes in the Emirates serves as a compelling incentive for wealth migration from Africa.

Amidst the release of the 2023 Africa Wealth Report, Amoils provided insights into the motivations behind this significant migration phenomenon, shedding light on the complex interplay of economic, security, and fiscal factors shaping the relocation decisions of Africa's affluent elite.

Amoils predicts a sustained trend of African migration to the UAE, foreseeing it extending beyond 2024. This projection is fueled by Dubai's ascent as the premier millionaire wealth center in the Europe-Middle East area, potentially eclipsing cities like London and Paris.

Amoils reports that between 2013 and 2023, approximately 18,700 high-net-worth individuals departed Africa, with destinations primarily including the UK, the US, Australia, and the UAE. Additionally, notable numbers relocated to France, Switzerland, Monaco, Portugal, Canada, New Zealand, and Israel.

According to data from Henley and Partners, the UAE is home to 116,500 millionaires, 308 centi-millionaires (individuals possessing $100 million in wealth), and 20 billionaires. Notably, the wealth of high-net-worth individuals surged by 77 percent from 2013 to 2023, marking the highest growth rate among BRICS countries.

Dubai specifically accommodates 72,500 millionaires, 212 centi-millionaires, and 15 billionaires.

The post-pandemic era has witnessed a significant influx of high and ultra-high-net-worth individuals to the UAE. This surge is attributed to the government's effective management of Covid-19, instilling confidence among global investors. Furthermore, the implementation of several new business-friendly policies has been instrumental in attracting top talent from across the globe.

Over the last decade, not only Africa but also 1,500 millionaires have made the move from the UK to Dubai.

The Henley Private Wealth Migration Report 2023, released earlier, anticipated that 4,500 millionaires would choose to relocate to the UAE in 2023, marking the second highest migration rate after Australia.

Amol Prabhu, CEO for South Africa and market head for Africa at Barclays, highlighted Dubai and Singapore as leading destinations for the relocation of ultra-high-net-worth families globally. This trend is particularly notable among those with business interests or seeking to establish family offices in either hub.

Prabhu noted that in the UAE, the relaxation of business regulations and the appealing golden visa program are significant factors driving the popularity of cities like Dubai.

Source: Khaleejtimes‍