Young Millionaires from UK and France Look to the UAE as a New Home

The recent survey revealed that an increasing number of high-net-worth individuals from the UK and France are interested in moving to the United Arab Emirates.

A survey of over 500 millionaires across these two European countries was commissioned by Arton Capital and titled the Affluence & Elections Survey. One of the main findings was that 21 percent of young millionaires, ages 25-40, have identified the UAE, particularly Dubai, as their preferred new place of residence.

What's driving this potential "wealth exodus" from the UK and France to the Middle East? Several factors were uncovered by the survey:

Tax Factors: The UAE does not impose personal income tax, and this is thus a very positive feature for the rich. Moreover, it considers UAE real estate to be relatively cheap compared to Western European hubs.

Business Opportunities: The UAE, especially business hubs like Dubai, is perceived to offer plenty of entrepreneurial and investment opportunities, particularly within the rapidly growing sectors in the technology field.

Quality of Life: Coupled with the modern, yet group-oriented Dubai, cities in UAE give all reasons to make it an attractive lifestyle for young millionaires. Additionally, the fine weather throughout the year is also an attraction.

Security and Stability: Against the backdrop of a geopolitically volatile region, UAE is perceived to be a haven that offers the much-needed political stability and security high-net-worth individuals are seeking.

A recent survey found that wealthy people in the UK and France are more jittery. Forty-four percent of those questioned responded that they were more likely to leave now than before recent elections that brought left-leaning governments to power—fearing probable future tax hikes and regulatory changes.

While the UAE is gaining momentum, North America still remains the favored destination to which these millionaires will relocate—31% mentioned the US and 32% are looking at Canada.

Of course, such a possible exodus of the rich comes with its challenges. On the other hand, countries like the UK and France may witness a "brain drain" coupled with the erosion of their tax base. On the other hand, recipient countries like UAE will receive a fillip in terms of highly skilled individuals and their investments.

This reflects the rising global mobility of wealth and talent. Opportunities and risks associated with this trend, therefore, remain to be negotiated by countries around the world in the next few years as this process of wealth migration unfolds.