With so many world-class offerings, it does not come as a major surprise that the United Arab Emirates attracts so many rich and super rich people from around the world. New research from Savills places Dubai and Abu Dhabi as the world’s top two cities for high net worth individuals (HNWIs) to live and work.
The Allure of the UAE
The rise of Dubai and Abu Dhabi as prime relocation destinations for High Net Worth Individuals (HNWIs) is a noteworthy trend. Wealthy individuals are not only considering financial incentives; they are also weighing lifestyle factors, cultural environment, and quality of life when deciding where to plant their roots. In 2025, these cities stand tall against a backdrop of increasing global volatility, making them attractive options for those seeking stability, luxury, and comfort.
Understanding HNWI Preferences
New dynamics are emerging among HNWIs as they gravitate toward locations that offer a strong sense of community along with economic benefits. Factors like a city’s quality of life, cultural diversity, and climate are becoming key considerations, often outweighing traditional financial incentives. This shift emphasizes an evolving mindset; individuals are looking for more than just tax breaks—they want a place they can call home that enhances their lifestyle.
Why Dubai Takes the Lead
According to recent studies, Dubai has clinched the top position mainly due to its zero personal tax regime and various financial incentives. This is particularly compelling for individuals transitioning from countries with high income taxes, such as the UK, where tax rates can climb as high as 45%. The absence of capital gains tax, inheritance tax, and taxes on dividends creates a financial ecosystem that is almost too good to resist for many wealthy individuals.
Abu Dhabi: A Close Contender
Not to be overlooked, Abu Dhabi ranks right behind Dubai in the Savills report. While Dubai may lead in tax benefits, Abu Dhabi offers a high standard of living with its own set of cultural and luxury amenities. This makes it a worthy competitor in the race to attract the world’s wealthy, providing a more stable and quieter environment while still offering all the essential luxuries.
The Surge of New Residents
In just the past year, over 6,700 ultra-wealthy individuals migrated to the UAE. A significant portion consists of multi-millionaires from the UK, drawn by the prospect of paying little to no taxes. Additionally, geopolitical shifts have strengthened this migration flow. Wealthy Russians, in particular, have increasingly made Dubai and Abu Dhabi their home, attracted not just by favorable tax conditions but also by an investment-friendly real estate market.
Economic Impact of Wealth Migration
The influx of affluent residents has noticeably impacted the local economy, particularly the real estate sector. In 2024, a 6.8% increase in prime residential property values in Dubai was recorded, alongside a 47% surge in residential real estate transactions. This boom isn’t just beneficial; it transforms the cities into bustling economic hubs, further raising their profiles and attractiveness to future HNWIs.
The Role of Geopolitical Stability
Paul Tostevin, a Director at Savills, comments, “Against an increasingly changeable geopolitical and economic backdrop, global wealth flows are evolving.” He points to traditional predictors of wealth migration, such as government policies and the presence of innovative talent pools, as well as a growing appreciation for quality of life. This sentiment resonates particularly in cities like Dubai and Abu Dhabi, where the combination of luxury and stability stands out.
Lifestyle as a Deciding Factor
Beyond financial sweeteners, lifestyle choices are becoming increasingly vital. For HNWIs, factors like culture, healthcare, and personal preferences are intertwined with their financial considerations when selecting a new city. The allure of the UAE is multifaceted, and its recent economic growth has notably improved its global standing, ensuring that it remains a magnet for the world’s richest individuals.
Final Thoughts
The trends in relocation among HNWIs reflect changing values that prioritize lifestyle, community, and quality of life alongside financial incentives. As the UAE cements its status as a luxurious and stable destination, it is poised to attract even more of the world’s elite in the coming years. The synergy between economic growth and lifestyle appeal is likely to sustain the momentum, reinforcing Dubai and Abu Dhabi’s positions as the ultimate relocation choices for the wealthy elite.
