You might have heard a fair few things lately about the United Arab Emirates (UAE), and the West Asian country’s credentials as a destination for migrating millionaires.
Indeed, insights into this trend were provided in June by the release of the Henley Private Wealth Migration Report 2024. This report disclosed that the UAE was the number one destination for high-net-worth individuals (HNWIs) leaving their existing nations behind.
Specifically, the report indicated that a record net 6,700 HNWIs were expected to arrive in the Middle Eastern state this year. This shift was seemingly attributable to such factors as the UAE’s policy of charging zero income tax, as well as the opportunity of an exciting expatriate lifestyle.
China tops the list of states seeing an outflow of millionaires
A no less interesting aspect of the Henley Private Wealth Migration Report was its findings on where those millionaires – defined as those with liquid investable wealth of at least $1 million – were coming from.
Sure enough, it was China that topped this ranking, with a projected net exit of 15,200 HNWIs this year, up from 2023’s 13,800. In second place was the UK, which is anticipated to lose 9,500 millionaires in 2024, with India in third position, due to the 4,300 wealthy people that are expected to depart the South Asian country.
There are excellent reasons to factor the UAE into your overseas expansion plans
When you consider the aforementioned numbers alongside reports such as this one from Jing Daily – declaring that “Chinese wealth shifts to Dubai as business opportunities boom” – it might be tantalizing for you to think about the merits of the UAE as a focal point for the international expansion of your own business.
That particular report cited a number of elements explaining the appeal of Dubai to some of Asia’s wealthiest individuals, including its pro-business environment, low tax rates, the access it provided to luxury facilities, and its convenient location between Europe and Asia.
However, even beyond those factors, the UAE has much to commend it as a place to start or expand a business. The Government’s focus on economic diversification – lessening the state’s dependence on oil revenues – has helped it cultivate a stable and robust economy.
Moreover, this part of the Arabian Peninsula offers a diverse and skilled workforce, supported by the presence of international universities and training providers.
The right EOR service could greatly help smooth your path to the UAE
As enticing a destination as the UAE has become for international expansion of businesses over recent years, it can understandably be an intimidating process to get to grips with a new jurisdiction’s corporate landscape and employment regulations.
This is why you might consider engaging an Employer of Record (EOR) service, such as Aspirock, to take some of the compliance and management burden off your hands when you are seeking to expand your business to the UAE.
We can act as the legal employer for your UAE-based workers, assuming responsibility for such elements as payroll and employment contracts, without you having to go as far as establishing a local entity in the West Asian country. This will help free you up to focus on the growth of your business activity in such an exciting part of the world.
To learn more about our EOR services and expertise, and how Aspirock can serve your international expansion efforts almost wherever they may lead, please don’t hesitate to get in touch with us.