UK millionaires head to UAE: Richest Brits leave as cost of living crisis worsens, Dubai real estate to benefit

UAE’s relatively lower cost of living, salary benefits, economic stability and security, coupled with its rising status as an emerging global hi-tech hub are seen to attract most UK millionaires and professionals.

A combination of high taxation, rising cost of living and deteriorating health system in the UK is driving the UK’s super-rich to migrate to various parts of the world, with the UAE emerging as their most favoured destination, recent studies and experts revealed.

Rising risks of the UK slipping into recession in 2024, leading to further value deteriorating of property and other assets are predicted to further accelerate the migration of millionaires from London – once the most favoured city for wealthy from around the world – going forward.

The UAE’s relatively lower cost of living, salary benefits, economic stability and security, coupled with its rising status as an emerging global hi-tech hub are seen to attract most UK millionaires and professionals to consider the Gulf country as the ideal place to be, experts said.

“The high taxation cost in the UK may be a significant factor causing millionaires – and also individuals – to leave and head to the UAE, where there is no personal income tax,” Dr Kiran Nair, considered an expert on economic factors-related migration and Associate Professor of Marketing, Abu Dhabi University, told Arabian Business.

“Compared to the UK, the UAE’s cost of living, salary benefits, and security attract most UK professionals to consider the UAE the ideal place to be,” Nair said.

Alois Kugendran, General Manager – Real Estate at Huspy, a Dubai-based leading property consultancy and mortgage firm, said people choosing to move to the UAE are not just a trend, “but something we believe will continue to grow [in the coming years]”.

“The long-term residence visas, quality of life, public safety, and trusted leadership inspire more people to move here,” Kugendran told Arabian Business.

Both of them pointed out that living costs in the UK are estimated to have increased by 50 percent in the last year, mainly due to the rise in energy prices due to the Russia-Ukraine war, making it difficult for families and professionals to manage their expenses.

The UK is estimated to lose another 3,200 HNWIs (high net worth individuals) to migration in 2023, according to Henley Private Wealth Migration Report 2023.

The report also revealed that during the five-year period from 2017 to 2022, the UK has lost approximately 12,500 more HNWIs than it has gained through migration during the period.

UAE realty sector to benefit most from rising migration from the UK

Dr Nair said sectors like real estate in the UAE will have an immediate positive impact with further investments from the UK.

In 2023, UK nationals are estimated to have accounted for 21.2 percent of investment in real estate of all international property transactions.

“Apart from this, considering Dubai’s strategic location as a gateway between the East and West, many UK entrepreneurs are setting up their businesses in the UAE, which will boost the UAE economy with diverse investments,” the Abu Dhabi University professor said.

Agreeing with Dr Nair’s view, Kugendran also said the UAE’s property rules have encouraged many [international investors] to make their home in the Emirates.

“With just an AED2 million investment, families are entitled to a golden visa, making it one of the most simple residency processes in the world,” the Huspy senior executive said.

Kugendran said British nationals have been buying homes and investing for the long-term. Amongst the top home buyers in the country, British nationals were the number one property investors in Q1 and Q2 of 2023.

“These (UK) HNWIs are seeking high-end luxury villas and branded residences in some of our most premium projects,” the Huspy senior executive said.

“We’ve also seen an influx of real estate professionals [from the UK], filling a number of jobs here. Property agents, for example, can earn uncapped commissions, which is not only attractive, but unheard of in the UK,” he said.

Kugendran, however, highlighted the significance of the UAE building a thriving tech ecosystem which is attracting talent not just from the UK but from around the world.

“At Huspy, we have employees from a number of different countries, who have worked at global tech powerhouses, but have now chosen to be based in the UAE,” he said.

“The combination of high quality of life, thriving economy, and access to talent is making the UAE a high potential market, and one that’s hard to ignore,” Kugendran said.

Meanwhile, UK’s economic troubles forecast to rise

Dr Nair said as per the economic forecast, household disposable income in the UK is decreasing and is expected to fall further in 2024, leading people to migrate out of the country.

“Multiple multinationals have been laying off employees since 2022, and this trend continues, creating job insecurity [in the UK]”, the Abu Dhabi University professor said.
He said high unemployment, with nearly 10 million UK professionals jobless – which is nearly 25 percent of the UK population – is another reason people are looking for countries like the UAE.

There is already a high possibility of the UK economy going into a recession in 2024; from April to June quarter, 2023, the UK had zero growth in GDP, and from July to Sept 2023, they had negative growth.

“With more professionals leaving the UK, the economic situation will worsen.”

Dr Nair said the movement of wealthy professionals from the UK to the UAE, on the other hand, will positively impact the UAE’s economy.

“Considering UAE’s economic growth, political stability, and job opportunities, UAE is now the first choice for migration,” Dr Nair said.

The UK, and London especially, has traditionally been seen as one of the world’s top destinations for migrating millionaires and for many years (from early 1900s to 2010) as it consistently attracted large numbers of wealthy people from Europe, CIS, Asia, Africa and the Middle East.

However, this trend began to reverse around a decade ago as more millionaires left the country and less came in.

The dwindling importance of the London Stock Exchange (LSE) and Brexit are seen to have forced a large number of British HNWIs to move to Europe and other global financial hubs such as the UAE over the past few years.