Revealed: What attracts millionaires to the UAE…

Almost two-thirds (65%) of wealthy individuals in the UAE identified strong economic security and opportunity as the key factor behind their decision to reside within the country over the next five years, according to the latest report in the Barclays Wealth Insights series.

The wealthy view the UAE as a safe haven, posing relatively strong economic security and opportunity in the region. Moreover, the UAE has outpaced other high growth markets, offering political security, international opportunities and strong tax benefits, according to Barclay’s "The Rise of The Global Citizen?" report which is based on a global survey of more than 2,000 high net worth individuals (HNWIs), comprising entrepreneurs, business leaders and investors. The report navigates the global landscape of wealth, examining where individuals today live, work, retire and give their time and money.

HNWIs in the UAE are increasingly optimistic of the improving economic climate in the Emirates (59%), citing political stability (33%), economic security (43%), innumerable tax benefits (44%) and the promotion of an entrepreneurial climate as key ingredients attracting them to residing within the UAE.

The stability of the nation, strong and sustained investment in infrastructure alongside the government's commitment to friendly financial policies were all named as key points in the survey.

The UAE government's focus on healthcare, tourism, education and housing were also outlined as positive areas for growth, underscoring the broader economic landscape, Barclays report said.

Over half of the global wealthy associate themselves very closely with the country to which they belong. This trend is particularly evident among North American and Middle East respondents.

Middle East residents (92%) who identify closely with their country refer often to economic opportunities (45%) and security (47%). Among the UAE HNWIs the report referenced a strong leaning towards religion, ethnicity, extended family and local community leading as being key drivers of their sense of nation.

Philanthropy is an integral part of Middle Eastern culture and the UAE carries on several philanthropic initiatives to help the needy and underprivileged across the world. Dubai has established its reputation as one, which believes in giving and reaching out to those who are less privileged. Nearly 70 % of HNWIs residing in the UAE have a high sense of investing time and money within the community for benevolent activities.

The ultra-high net worth individuals (UHNWI) in the Middle East tend to be relatively more entrepreneurial and active compared to other markets, according to the report.

When they have reached that level of ultra-high wealth, their appetite for business activity remains as high as the high net worth individuals. Entrepreneurs form the foundation of growth and opportunity within the region. They grow businesses and boost employment; they are visionaries and they innovate. By building their own businesses, entrepreneurs are supporting their countries' growth. This report reveals how entrepreneurs are focused on wealth creation and mobilisation not simply preservation which indicates they are willing to re-invest in their businesses in the future.

Increased mobility among the world's wealthy

The report shows that while three quarters (74%) of the UAE's HNWIs have already lived in more than one country, and 40% have lived in three or more countries, the UAE wealthy cite a good work/life balance (33%) and international career opportunities (31%) as two of the main reasons for currently living there.

Cedric Lizin, Head of Middle East and North Africa, and Head of Business, Japan, Barclays Wealth and Investment Management, said: “Through our deep rooted presence in the Middle East region, Barclays has accumulated a strong understanding of and strong business relationships with the high net worth individuals who drive investment, trade and the accumulation of wealth. The Gulf region has a high likelihood of further and sustained growth. The recent Expo 2020 announcement has provided an even stronger incentive for economic growth in the UAE with job opportunities and building developments all contributing to a thriving economy. In addition, the recent MSCI upgrade of the UAE and Qatar from "frontier market" to "emerging market" status strengthens the region's position in the global economic environment.

“All these factors, we believe, will drive investments by HNWIs in the region making the country an even more attractive place to migrate. In line with these developments, Barclays is committed to continuously invest in our Mena business to ensure that we constantly provide bespoke financial solutions and services that match our clients' evolving requirements."

An open map

In terms of migration patterns and wealth flows, North America and Europe could see the biggest influxes of global HNWIs in the future. However regions such as Asia Pacific are also seeing over one in 10 (12%) HNWIs from Europe and one in 20 (6%) of those in North America looking to move there in the next five years, signalling the possible shift of wealth hot spots from West to East.

Next generation of global citizens

While today's HNWIs are living increasingly global lifestyles, spending more time in different countries, it is their offspring that could ascend to become a truly multinational generation. Over three-quarters (78%) of HNWIs in the UAE expect their children to live in more countries than they have done, compared to 76% in Qatar and 29% in Saudi Arabia.

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