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

Harnessing Digital Tools For Small Business Growth

April 9, 2024

UKEF joins new international alliance to help export...

December 4, 2023

How to mitigate some of Hunt’s brutal Autumn...

November 17, 2022

Conservatives Promise Pub and Club Revival in First...

June 24, 2024

The Fastest Managed WordPress Hosting in New Zealand

February 8, 2023

Unleashing Innovation: How Fintech Startups are Driving Embedded...

August 9, 2023

Millions of people not working is ‘unacceptable’ says...

July 11, 2024

Moneta Communications Acquire Catena Media For £5.2 million

August 14, 2023

Cash flow becomes top priority for small businesses...

October 27, 2022

Missing older workers ‘weigh on economy’s growth potential’

February 3, 2023

    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

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • 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