In Dubai, Europe’s millionaires find a paradise without taxes on income or property. The city offers a favorable business environment and excellent flight connections. Compared to major cities like New York or London, the streets are safer and cleaner. In addition, all taxes on income, property and capital gains are waived in Dubai. According to wealth advisory firm Henley & Partners, the United Arab Emirates will attract around 6700 millionaires this year. This figure is around twice as high as the expected number of new millionaires in the USA, the traditional home of the rich, where there are currently 5.5 million people with a fortune of at least one million dollars. Dubai has always been a magnet for wealthy Russians, Indians and Arabs from neighboring countries. Recently, however, it has increasingly attracted European financial moguls fleeing political uncertainty in their home countries. Brokerage agencies and brokers are reporting a growing number of wealthy French people who fear they will be disadvantaged under a right-wing government. Italians who are already in a state run by right-wing extremists are also showing increased interest. Many of these Europeans set up family offices for asset management or invest in real estate. In the first three months of 2024, the French and Italians were among the most active property buyers in Dubai, alongside the traditionally strong Indian buyers. Germans who are concerned about the rise of their right-wing populists could soon follow suit. Dubai’s appeal to wealthy Europeans was further strengthened in February when the international financial supervisory authority, the Financial Action Task Force (FATF), removed the city from its “gray list” of places with inadequate measures against money laundering. Emirati banks are now screening their customers more strictly, and large real estate developers are no longer accepting cash payments. Confidence in the financial market has increased as a result. These measures may also have led to wealthy Russians increasingly choosing other destinations for their investments in order to avoid sanctions. For new residents of Dubai, this means better opportunities to find qualified staff such as nannies, chauffeurs and consultants. Despite the tense situation in the Middle East, European millionaires are not deterred. They could argue that the war on the EU’s eastern flank is more threatening, or that the stability and splendor of autocratic politics in the United Arab Emirates outweigh the uncertainties in the region.
Europe’s millionaires flee to Dubai
