Without a question, the UAE provides unmatched investment opportunities. A sharp rise in the population of high-net-worth individuals has been observed in the UAE in recent years, particularly in Dubai, the country’s capital city. Additionally, the number of investors in the city has drastically increased, as a result.
In reality, Dubai is the wealthiest city in the UAE, according to latest data from New World Wealth. Furthermore, the Middle East and North Africa (MENA) region’s UAE is the richest country. Dubai also comes in at number 23 on the ECA’s cost-of-living ranking. Furthermore, it is predicted that the UAE’s financial wealth will increase at a compound annual growth rate of 6.7%, reaching $1 trillion in 2026.
In addition to the UAE’s extraordinary potential, a large inflow is caused by high rates of inflation and unfavorable economic situations in various developed and industrialized nations, leading to a high number of influx of HNI’s in the UAE.
The UAE is expected to receive 4,000 high-net-worth visitors. This is an impressive increase from the 1,300 millionaires there were in 2019, a 208% increase demonstrating how successful the UAE is at attracting private wealth, money, and skill. Yet how? What are the underlying causes of this sharp rise in the number of high-net-worth people visiting Dubai and their investments? Let’s examine.
This article will explain why the UAE is becoming a popular destination for high-net-worth individuals and will go through the best investment zones.
What Draws High-Net-Worth Individuals to the UAE?
1. The 50 Projects
The UAE government unveiled a series of 50 new economic and development initiatives under the “Projects of the 50” initiative to commemorate the country’s 50th anniversary since its inception in 1971. The UAE’s 50-year vision is outlined in this article. The initiatives are planned to make UAE –
Global resources for economic innovation and investment
incubator for start-up businesses and new initiatives
advanced research facility for new business opportunities
In order to attract and keep bright employees and residents, it also entails investing in technology and creating new visas. The UAE and the Emirates Development Bank would invest AED 5 billion in industrial technology and technology-intensive industries, according to Minister of Industry and Advanced Technology Sultan al-Jaber. The new initiative plan currently consists of the following:
Introduction of the Green Visa and extending eligibility for the Global Visa
The present yearly trade volume with these markets is increased via economic cooperation agreements by AED 40 billion. In the following ten years, it is intended to double the country’s economy from AED1.4 trillion to AED3 trillion. A data law was introduced to provide people more power over how their personal data is used.
2. Increasing Capital Inflows
After the COVID-19 outbreak, the UAE has persistently worked to recover. It is one of the desirable rising destinations for foreign direct investments, according to reports from the Institute of International Finance (IIF) (FDI). FDIs increased by 4% from 2019 to 2021, reaching $20.7 billion. Additionally, the nation has signed nearly 106 agreements for the protection and promotion of investments with its trading partners. The UAE’s stable government, advanced infrastructure, welcoming policies, and favorable economic environment are the causes of the strong capital inflows.
3. Dedicated Free Zones
There are more than 40 different free zones in the UAE, and each one is closely connected to regional and international trade organizations. With Singapore, the European Union, and the European Free Trade Association, it has free trade agreements. It has hopes to sign eight additional contracts soon. Additionally, it participates in both the Greater Arab Free Trade Area and the World Trade Organization (WTO) (GAFTA).
The UAE offers a more attractive environment for startups, business owners, and independent workers as a business-friendly setting with many options for HNWIs to immigrate and invest. Due to the availability of these economic freedoms, investors have the opportunity to participate in more than 2,000 permitted commercial operations with full ownership of the company.
4. A Supportive Legal Environment
To promote commerce and investment, the UAE’s regulatory environment has been consistently enhanced. However, the country made what might have been its most significant move yet in 2021 when it allowed 100 percent foreign ownership of companies in a variety of industries, doing away with the need for an investor to find a local partner.
According to “Projects of the 50,” the visa and residency processes are also continuously modified in order to hire competent people in crucial areas, particularly in the health, scientific research, technology, and cultural sectors.