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The United Arab Emirates is gearing up for a significant influx of ultra-wealthy individuals over the next two decades. A recent study reveals that Dubai, Abu Dhabi, and Sharjah are on track to experience a remarkable surge of more than 150% in their centi-millionaire populations between 2024 and 2040.

UAE Cities: Magnets for the Super-Wealthy

The Centi-millionaire Report 2024, published by Henley and Partners in collaboration with New World Wealth, highlights the UAE’s growing appeal to the world’s financial elite. Here’s a breakdown of the current centi-millionaire landscape in key UAE cities:

• Dubai: Ranked 15th globally, home to 212 centi-millionaires
• Abu Dhabi: Placed 50th, with 68 centi-millionaires
• Sharjah: Houses 11 centi-millionaires

For context, centi-millionaires are individuals with liquid investable assets of $100 million (AED 367 million) or more.

Factors Driving the Wealth Migration

The UAE’s post-pandemic surge in high-net-worth individuals (HNWIs) can be attributed to several key factors:

1. World-class healthcare facilities
2. Top-tier educational institutions
3. Zero income tax policy
4. Enhanced safety and security measures
5. Excellent air connectivity
6. Business-friendly environment

Notably, UAE cities are absent from the list of the 20 most expensive cities for centi-millionaires, further enhancing their appeal.

Dubai: A Wealth Hub in the Middle East

Dubai stands out as a particularly attractive destination for the ultra-wealthy. The city currently boasts:

• 72,500 millionaires
• 212 centi-millionaires
• 15 billionaires

Arif Amiri, CEO of Dubai International Financial Centre (DIFC) Authority, emphasises Dubai’s significance:

“Dubai has the highest concentration of private wealth in the Middle East, offering a thriving and safe economic climate that motivates wealthy individuals to relocate.”

The DIFC itself is home to:

• Over 600 active registered entities associated with family businesses
• 120 of the world’s wealthiest families and individuals
• A combined net worth exceeding $1.2 trillion among these families

Global Context: The Centi-Millionaire Landscape

Worldwide, there are approximately 29,350 individuals with liquid investable assets of $100 million or more. This exclusive group has grown by 54% over the past decade, with the United States and China experiencing particularly rapid growth.

The top 10 cities globally for centi-millionaire populations are:

1. New York City
2. The Bay Area
3. Los Angeles
4. London
5. Beijing
6. Singapore
7. Shanghai
8. Hong Kong
9. Chicago
10. Paris

The Impact of Centi-Millionaires on Economic Growth

Andrew Amoils, head of research at New World Wealth, notes that over 60% of centi-millionaires are entrepreneurs and company founders. This makes them particularly valuable for wealth creation and economic development.

“The businesses started by centi-millionaires have a significant positive spillover effect on the middle class as they create large numbers of well-paying jobs in their base country,” Amoils explains.

Looking Ahead: Emerging Wealth Hubs

Dr Juerg Steffen, CEO of Henley and Partners, predicts a reshaping of the global centi-millionaire map. Emerging tech hubs like Shenzhen, Hangzhou, Austin, and Bengaluru are expected to see exceptional growth in their ultra-wealthy populations.

Cities benefiting from inward wealth migration, including Dubai, Abu Dhabi, and Riyadh, are also projected to see substantial increases in their centi-millionaire communities.

As the UAE continues to evolve its economic landscape and enhance its appeal to global investors, the growth in its ultra-high-net-worth population is likely to bring both opportunities and challenges. The coming decades promise to solidify the UAE’s position as a leading global wealth hub, with Dubai, Abu Dhabi, and Sharjah at the forefront of this transformation.