UAE offers unparalleled opportunities for high-net-worth individuals – News

There is a net loss of millionaires from the powerful developed economies due to high inflation and the uncertain economic situation. It results in increased investment interest towards the GCC nations, particularly the United Arab Emirates.



The number of ultra-high net worth individuals (UHNWIs) with a net worth of $30 million own about 41 percent of the wealth and could increase by 43 percent by 2026 in the United Arab Emirates. — file photo

By Pratik Rawal/Point of View

Published: Sun 18 Sep 2022 17:14

The UAE has become a magnet attracting a huge influx of high net worth individuals (HNWIs) and predicts the relocation of some 4,000 millionaires this year. The forecast shows that financial wealth in the United Arab Emirates will reach $1 trillion, at an annual rate of 6.7 percent, in 2022.

There is a net loss of millionaires from the powerful developed economies due to high inflation and the uncertain economic situation. It results in increased investment interest towards the GCC nations, particularly the United Arab Emirates.

The UK, once known as the financial hub of the world, has seen a steady loss of millionaires with an expected outflow of 1,500 HNWIs by 2022, with the United Arab Emirates appearing to be the biggest beneficiary.

Additionally, the number of ultra-high net worth individuals (UHNWIs) with a net worth of $30 million own about 41 percent of the wealth and could increase by 43 percent by 2026 in the UAE.

United Arab Emirates gains traction

For the past few decades, the UAE has focused on tourism and trade, with a nimble approach to adopting new immigration regulations. Investors migrate with the intention of exploring the business possibilities and residence options available. The UAE has gained ground in attracting global attention for its efficient leadership during the pandemic and represents the benefits of competitive tax rates.

Economic and social development is increasingly attractive to HNWIs who want to invest in the real estate and industrial sectors.

Emerging business opportunities

The global community of high net worth individuals is choosing the United Arab Emirates as their residential location due to the latest economic and business incentives launched to promote Foreign Direct Investment (FDI).

With Expo 2020, high-tech and sustainable investments reached a high point internationally. However, the Ministry of Economy launched initiatives to attract the best entrepreneurs and investors in the world, offering a fast process of establishing businesses with flexible commercial and residential leases. Competitive and progressive approaches attract capital, digital asset entrepreneurs, notable talent, private wealth, and foreign investment.

The recent forecast estimates that stocks and mutual funds are projected to grow 8.8 percent annually by 2026. The UAE is the only country that caters to the high-end luxury lifestyle for high-end people. net worth compared to acclaimed cities like London. , Tokyo and New York.

UAE Economic Incentive Initiatives

The UAE offers a more attractive ecosystem for startups, entrepreneurs and self-employed individuals, providing a business-friendly landscape that offers immense possibilities to HNWIs for immigration and investment in the country.

With more than 40 economic free zones, investors have the flexibility to engage in more than 2,000 licensed business activities with full company ownership.

The best free zones for investments

1. Dubai International Financial Center (DIFC)

DIFC is a global financial hub for the Middle East, Africa, and South Asia (MEASA), hosting major international banks, law firms, insurance companies, and GCC FinTechs. It is a comprehensive financial ecosystem with more than 2,700 companies, connecting the fast-growing economies of Asia, Europe and the Americas.

With a unique legislative system and an independent regulator, DIFC is one of the perfect bases to start financial, non-financial or retail businesses.

2. Dubai World Trade Center (DWTC)

Under the jurisdiction of DWTC, entrepreneurs can establish a Free Zone Company (FZCO), a Free Zone Establishment (FZE), and a branch in the UAE abroad. It also offers licenses for commercial, general commercial, professional, event management, single-family or multi-family offices, and even e-commerce businesses.

3. Dubai Multi Commodity Center (DMCC)

DMCC, known for commodity trading, is the global trading center for more than 21,000 companies from various sectors. The free zone offers unlimited opportunities for trade with world-class commercial, residential and financial services to establish and establish a business.

Dubai, popularly known as the City of Gold, investors tend to set up precious metals businesses as 25% of the world’s gold trade occurs within the DMCC. The free zone offer infrastructure for the entire gold value chain, from research to trade, through initiatives such as DMCC Tradefow, Dubai Gold and Commodities Exchange (DGCX) and DMCC Vault.

Also awarded ‘Global Free Zone of the Year’, DMCC is the ideal free zone for start-ups/SMEs or to expand your existing business with access to infrastructure, network, flexible solutions and unparalleled quality lifestyle in a vibrant community . .

The wide range of integrated economies, driven by highly advanced technological infrastructure, strengthens business opportunities in the country. Dubai recently received a high ranking in the ‘FDI Global Cities of the Future 2021-2022’, demonstrating its vision of being a dynamic and sustainable ecosystem for high net worth individuals.

Although the most developed sectors for investment opportunities include oil, gas, finance, gold and tourism, Dubai recently ranked fourth in growth in value of prime residential capital, which is always a high-end real estate market. performance. The growing demand for luxury real estate will follow an upward trajectory, promising a higher return on investment (ROI). As HNWIs and global investors buy more properties, residential property costs will grow 5.3% in Dubai in 2022.

The UAE also provides investment opportunities in emerging industries such as cryptocurrencies, agricultural technology, and the metaverse. In addition, the government offers significant incentives for start-ups, making the country a gateway for HNWI investors.

United Arab Emirates emerges as a business hub

The United Arab Emirates can be a hub for accessing important markets globally. The unparalleled opportunities, government initiatives and flexible economy urge investors to make it their second home.

Based on interviews with wealth and fund managers, it is clear that millionaires hold capital as assets and business investments, followed by stocks and real estate.

Although the oil and gas markets are significantly important in the UAE, if you are looking for business investment opportunities, there are potential sectors that you should consider. Some popular sectors in the financial market include insurance and trading. With the increasing demand for technological adaptation, IT-based companies offering application development, virtual reality (VR), artificial intelligence (AI), and digital marketing can easily capture the market.

The UAE attracts high net worth individuals to expand their business plans in the tourism and hospitality sector by creating boutiques, resorts and high-end hotels in a versatile tourist destination.

Visa reforms gain popularity

The United Arab Emirates introduced new visa and residence permit policies to attract high-end businesses and investments, making the nation a perfect destination for innovative investments.

The golden visa, launched in 2019, was intended to encourage foreign investors and HNWIs to take root in the country. It offers a long-term residence regime of 10 years with automatic renewal. While the green visa allows people to obtain a 5-year residence permit for themselves and their families without a sponsor. Entrepreneurs can also apply for a business visa by investing or starting a business in any emirate.

With quality of life, healthcare system, stable economy and luxury lifestyle, Dubai attracts retirees and expats with net worth to invest and retire through retirement visa offering 5 renewable residence visa. years for your spouse and dependents.

Mutually reciprocal visa exchanges prevail by granting exclusive benefits to HNWIs to invest and settle.

In addition, several banks in the UAE provide a 10-year golden visa based on a fixed bank deposit of at least AED 2 million for a minimum period of 3 years.

As high-net-worth individuals continue to explore business and investment opportunities for expansion, travel mobility, standard of living, and legal-protected wealth perseverance, the UAE’s agile approach promotes the migration of investments.

Pratik Rawal is the Managing Partner of Ascent Partners. The opinions expressed are his own and do not reflect the policy of the newspaper.

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