Indian millionaires favor UAE for migration in 2024
What's the story
In 2024, an estimated 4,300 Indian millionaires are expected to relocate, with the majority choosing the United Arab Emirates (UAE) as their new residence.
This data comes from a report by Henley and Partners, an international investment migration advisory firm.
The figure indicates a decrease from the previous year when around 5,100 Indian millionaires migrated abroad.
Global ranking
India ranks third in global millionaire migration
Despite the outflow of wealth, India holds the third position globally in millionaire migration, following China and the United Kingdom.
According to the report, concerns about the outflow of wealth from India, as many millionaires migrate to the UAE, might be alleviated by the country's wealth growth of 85% over the past decade.
It also emphasizes that these migrating millionaires often maintain business interests and second homes in India.
Financial expansion
Indian banks expand services in UAE
Indian private banks and wealth management platforms are making significant inroads into the UAE market.
Institutions such as Kotak Mahindra Bank and 360 ONE Wealth are extending their services in the UAE to offer seamless investment advisory services for their clients.
The report noted that these efforts ensure they "don't lose out to their competitors."
Economic impact
Millionaire migration boosts foreign exchange reserves
Globally, around 1,28,000 millionaires are projected to relocate in 2024 with the United States and UAE being their top choices.
These migrating millionaires play a crucial role in contributing to foreign exchange reserves as they tend to bring substantial assets with them when they move countries.
They often establish businesses that create high-paying jobs and stimulate local stock markets through equity placements.
Migration motives
Factors influencing millionaire migration
The reasons for this migration vary widely among high-net-worth families.
Factors such as safety, financial considerations, tax benefits, retirement prospects, business opportunities, favorable lifestyles, educational opportunities for children, healthcare systems, and overall quality of life are all taken into account when deciding to relocate.
These factors collectively contribute to the decision-making process of these millionaires when choosing their new homes.