The UAE –a leading destination for High-Net-Worth Individuals

Hourani & Partners have highlighted in their overview of estate and succession planning for the 19th Annual International Estate Planning Institute – STEP New York, that the UAE has "emerged as a leading destination for HNWI migration, attracting 4,000 more millionaires in 2022 than those departing, making a 208% increase in just two years". 

This number seems only to be increasing and the reason for this is multifactorial. Examples of such factors may include the UAE's favourable tax regime; the unfettered freedom in using foundation structures; the ease at which family offices can operate and do business in the region and globally; the growing commercial hubs in the DIFC, RAKICC and the ADGM; and, of course, the UAE's Golden Visa. It is clear that the UAE has established itself as an attractive hub for migrating HNW individuals to take advantage of opportunities for substantial investments or entrepreneurial ventures. With such an increase of migration to the UAE, it is inevitable that the amount of investible wealth held in the region is only going to grow larger. 

Such a trend should be both applauded and encouraged, as the growing millionaire population in the UAE will serve to enhance the economic prosperity of the region as a whole. It is, however, critical that HNW individuals maintain an approach of some caution so that they make serious efforts, if they have not done so already, to protect their ever-growing wealth and ensure that such wealth is invested in a diversified portfolio. Whilst the UAE has systems in place that are indeed friendly to HNW individuals, it is not uncommon for such individuals to both hold foreign assets in other jurisdictions, such as the UK, and to seek to invest more in those jurisdictions. Boodle Hatfield continues to advise HNW individuals as to their succession planning, wealth protection and philanthropic strategy. Many of these individuals are resident outside of the UK, and we have seen an increasing demand from HNW individuals from the UAE for access to UK legal services.