From no income tax to low crime rates: Why millionaires are flocking to Dubai

Dubai is emerging as one of the world’s biggest magnets for the ultra-wealthy. Once seen mainly as a holiday stop for shopping and luxury experiences, the city is now turning into a place where the rich are choosing to settle down and build their lives.

It’s not hard to see why. There’s no income tax, the politics are stable, crime is almost non-existent, and starting or running a business is pretty straightforward. On top of that, luxury here is just part of everyday life.

The numbers tell the story. According to advisory firm Henley & Partners, the UAE is set to attract about 9,800 millionaires this year alone, more than anywhere else in the world.

So, what’s behind this shift? How did Dubai become a haven for the global elite? Let’s break it down.

Record numbers of millionaires choosing Dubai

According to Henley & Partners_,_ Dubai is already home to 81,200 millionaires and 20 billionaires, making it one of the top 20 cities globally for wealthy residents. But the numbers are still climbing at a pace the world hasn’t seen before.

Globally, 2024 saw a record-breaking 1,34,000 millionaires relocate across borders, according to Henley & Partners. That figure is expected to rise to 142,000 in 2025. If even 5 per cent of these individuals pick Dubai, that’s roughly 7,100 new millionaires in a single year.

And it’s not just about people moving, it’s about the money they bring. Analysts estimate that this flow of wealth could inject more than $7.1 billion (Dh 26 billion) into Dubai’s economy, nearly half of the emirate’s total foreign direct investment in 2024, reports the Gulf Business.

“Dubai has matured into the world’s most compelling plug-and-play city for wealth,” Louis Harding, CEO at Betterhomes, told the outlet_._ “What’s changed is intent; founders, operators and multi-generational families are anchoring here, not passing through.”

Why the wealthy are choosing Dubai

At the heart of this migration is Dubai’s zero income tax policy, a rarity in today’s world where many governments are tightening rules around wealth.

Mike Coady, head of Skybound Wealth Management, told AFP many of his clients feel “success has become a liability in their home countries.”

He explained: “They’re being taxed more, scrutinised more, and offered less. In Dubai, wealth isn’t hidden, it’s normalised. In London, my clients whisper about their net worth. In Dubai, they can live freely.”

The golden visa scheme has also been a game-changer. Offering 10-year residency to wealthy or skilled foreigners, it allows entrepreneurs, investors, and professionals to establish long-term roots in the city. For many, it’s the stability they can’t find elsewhere.

Business also flows smoothly in Dubai. “Very little red tape” is another big draw, said Philippe Amarante of Henley & Partners, noting the emirate’s clear message: “We are open for business.”

Then there’s real estate. Dubai’s luxury property market is booming, with 435 homes worth $10 million or more sold in 2024, outpacing London and New York combined. And compared to European hubs like Monaco or Switzerland, Dubai still feels “affordable.”

As Faisal Durrani of Knight Frank put it: “Buyers from Monaco or Switzerland come looking for a $100 million apartment. In Dubai, for that price, you could buy a whole building.”

A lifestyle hard to match

For many millionaires, the draw goes beyond money. Dubai offers a lifestyle that’s difficult to replicate elsewhere — top-tier schools, world-class healthcare, modern infrastructure, and a sense of safety that’s increasingly rare in global cities.

Max Maxwell, CEO of Paddco Real Estate, who moved from the US, described it this way on the Building Wealth With No Borders podcast: “We’re all chasing a lifestyle, whatever that means to everybody. After leaving the US for the UAE, I found my family could enjoy a better lifestyle than where we were, for the same amount of money.”

The flip side of Dubai

Over the years, Dubai has become synonymous with over-the-top displays of wealth. It is home to an enormous mall with an indoor ski area, the world’s tallest building, and the Palm – an artificial island dotted with five-star hotels.

The rapid development into a world-leading playground for the rich has been met with criticism over gross inequalities, as armies of low-paid migrant workers form the backbone of the economy.

The UAE has also faced global scrutiny over money laundering and, in 2022, was briefly placed on a financial “grey list.” Since then, authorities have tightened regulations and extradited wanted figures to restore confidence.

Still, for the wealthy, those concerns haven’t been enough to slow the migration.

As Mike Coady put it, “The UAE fits like a glove.”

Go to Source