Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK’s Declining Attraction for Millionaires: A Shift in Wealth Migration

by August 30, 2023
August 30, 2023
UK’s Declining Attraction for Millionaires: A Shift in Wealth Migration

The UK, once a magnet for millionaires from the globe’s four corners, is losing its lustre. The past six years indicate a reversal in the wealth migration trend, with the country witnessing an outflux of the affluent and a reduced influx.

Simultaneously, the Middle East, notably Dubai, is emerging as a new hub for high net worth individuals (HNWIs), including young, high-earning Britons.

From 1980 to 2010, the UK consistently lured wealthy individuals from Africa, Asia, former USSR, Europe, and the Middle East. However, this trend started to wane around six years ago, leading to a net outflow of millionaires.

During 2017-2022, the UK lost approximately 12,500 more HNWIs to migration than it gained. It’s projected to lose another 3,200 millionaires in 2023.

In contrast, the UAE, primarily Dubai, is expected to witness a net inflow of about 4,500 millionaires in 2023 – one of the record highs. Before the pandemic, the UAE traditionally saw around 1,000 HNWIs migrating annually.

The majority of incoming millionaires in 2023 are expected to originate from India, with substantial numbers from the UK, Russia, Lebanon, Pakistan, Turkey, Egypt, South Africa, Nigeria, Hong Kong, and China.

In the UK, the aftermath of Brexit is perceived as a significant factor catalysing this “exodus”. The 2016 decision to exit the EU led numerous wealthy entrepreneurs to relocate to Europe in the subsequent five years.

The lion’s share of those migrating to the European Union belongs to the financial and professional services sector, including affluent financiers, hedge fund managers, investment bankers, lawyers, and wealth managers.

A comparison by the leading online property portal, Housearch.com, revealed that the cost of living in Dubai is significantly lower than in London.

Rent, groceries, transportation, and entertainment in Dubai are cheaper by 27.5% and 17.3%, respectively. To rent an apartment and maintain a decent lifestyle in Dubai, an expat needs a minimum of $5,500 a month, while in London, the amount is $7,200.

However, lifestyle considerations, such as customs, traditions, food, and activities, differentiate London and Dubai significantly. One more crucial difference is the climate.

Andrew Horbury, Managing Director of Cavenwell Group, commented on the findings, stating that Dubai’s appeal has increased due to substantial infrastructure and connectivity investments coupled with favourable business and tax rules.

Contrarily, Samuel Mather-Holgate, an adviser at Mather and Murray Financial, warned about the potential downfall of the London market, attributing it to unnecessary rate hikes by [Governor] Andrew Bailey and the MPC.

The impending impact of recent hikes could depress prices by up to 10%. An additional half a per cent increase could potentially lead to prices ending the year a fifth lower than their highs.

This shift in wealth migration patterns poses significant questions about the future economic landscape. As the UK grapples with the after-effects of Brexit and the shifting preferences of the wealthy, only time will tell how these dynamics will reshape the global wealth distribution.

Read more:
UK’s Declining Attraction for Millionaires: A Shift in Wealth Migration

0
FacebookTwitterGoogle +Pinterest
previous post
French tax adds to woes of British second home owners
next post
How can you fine-tune your working environment so everybody can be at their best?

You may also like

Payment provider Stripe predicts a challenging period ahead...

April 6, 2023

PM Rishi Sunak to disband Energy Efficiency Taskforce

September 24, 2023

Vinted triples profits to £80m as second-hand fashion...

May 14, 2025

John Lewis to end ‘never knowingly undersold’ era...

August 12, 2022

Transformative Leadership: Embracing Listening and Support

January 8, 2024

As Amazon MGM secures creative control of 007,...

February 21, 2025

Elon Musk accused of owing $500m in Twitter...

July 13, 2023

Homeworking means over an hour extra time to...

January 25, 2023

End of cash? Barclays says record 91 per...

February 17, 2023

Optimising Pallet Delivery for Business Success

February 2, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Disabling Trump’s “Tariff Button”

      June 5, 2025
    • ‘Sick puppy’ Tim Walz should never have been on Dems’ 2024 ticket, Trump says

      June 5, 2025
    • Federal judge orders Trump to restore funding to Clinton-era agency gutted by DOGE

      June 5, 2025
    • Musk says Trump would have lost 2024 election without him as ‘Big Beautiful Bill’ feud continues

      June 5, 2025
    • Ex-Biden adviser calls Jean-Pierre ‘kinda dumb,’ deletes tweet, says she’s not a ‘genius-level Black woman’

      June 5, 2025
    • ‘Coming for us’: Expert sounds alarm on CCP’s mission to ‘kill Americans’ after FBI makes shocking arrests

      June 5, 2025

    Categories

    • Business (8,148)
    • Investing (2,010)
    • Politics (15,535)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved