Over the years, the United Arab Emirates has grown in power and influence in a way that surprised the world. They managed to prove that smart governance was all it took for rapid development to happen. One key strategy the Emirati government focused on was making the country something of a welcoming oasis for the wealthy, to great success.
The Khaleej Times reports that last year, every 30th person in the UAE was a millionaire. In fact, the Middle East powerhouse had a growth of about 13,000 new millionaires in 2024, which took the total number of high-net-worth individuals to 240,343.
Today, so many millionaires favor the UAE as the place to do business and build their fortunes. In this article, let’s find out specifically how the country has been able to achieve this.
Their Tax System Directly Helps the Rich
In many European countries, the rich feel like they are punished for their wealth with the tax placed on their shoulders. In Nordic regions, the government takes almost half of your income if you earn well. The logic here is that the rich help pay for extensive public and social welfare programs.
While this approach has its benefits, it has also created a situation where the rich have no incentive to stay. Some, who are already involved in philanthropy, feel like they are being taken for a ride with the taxes they pay on top of everything. Thus, when a country like the UAE projects itself as the solution, it’s no surprise that the rich are more than glad to come.
The fact is that the UAE has taken conscious steps to become an attractive destination for the wealthy. For instance, in countries like the US and the UK, they charge a hefty 21% and 25% in corporate taxes. In comparison, the UAE only charges 9% for those earning above AED 375,000 ($102,110 according to current conversion rates). What’s more, there’s no tax for those earning below that amount.
As such, the relief that comes with low taxes instantly puts the UAE at the top of the list for many millionaires.
The UAE Real Estate Market Lends Itself to Wealth Building
Another major reason that millionaires love the country is how well UAE property works as an investment instrument. The queen of real estate in the country is Dubai, and as RD Dubai notes, average residential gross yields sit at around 6-7%. Likewise, mid-market apartments in localities like Jumeirah Village Circle regularly provide 7-9% gross yields.
As such, Dubai real estate investors are finding it a no-brainer for earning steady profits. Moreover, buying property in the country also has the double bonus of providing you with a Golden Visa. The main requirement is that the property should be worth over AED 2 million, or $544,588.
While not all millionaires may want to settle or retire here, it does open up the option of long-term residency. What’s more, property is very easy to sell or reinvest, so you’re still never locked into any one path.
It’s Not Just for Millionaires, but for Millionaire Families Too
While there’s certainly a subset of millionaires moving to the country for short-term financial plays, many millionaires think in terms of what’s best for their families. In this context, the UAE also ends up ticking a lot of boxes. It has managed to build a reputation of being low crime, safe for women, and with plenty of educational institutions for kids.
Kiram Ali, from Washington, DC, who relocated to Dubai with 2 kids, gives Business Insider the scoop. According to her, what was supposed to be three weeks turned into eight, then ten, before permanently relocating to the city. Ali says that she is more relaxed in Dubai, and even with a corporate job, she’s able to spend quality time with her spouse, friends, and kids.
She also notes that making friends is incredibly easy, considering Dubai is an expat city where everyone is open to meeting each other. Ali’s experience isn’t singular, and many who visit the country end up convincing their partners and kids to stay on.
All things considered, the biggest reason that the UAE has become so popular among the wealthy is convenience. The government wisely understands that if you remove the sort of bureaucracy and wealth-punishing taxes, the country grows.
What you’ll also notice is that as more wealthy people choose the UAE, it creates a cycle that compounds. The rich will go where other rich people are, and this brings their families, investors, and ultimately, more investment into the country.
