UAE to be 'the paradise of rich' by 2025

As some Middle East countries may notice the migration of opulent individuals, UAE's millionaire numbers will shoot up, report says.

UAE to be

Dubai: The UAE is upholding its fame in the world as paradise for the rich, with thousands of millionaires moving into the country over the last few years alone, according to the latest data available.

There will be a spike in the country’s millionaire numbers over the next decade, as more high-net-worth individuals are expected to leave the neighboring hubs like Turkey due to “serious political and economic problems.”

The Middle East 2016 Wealth Report, underlines the fact that high-net-worth individual (HNWI) inflows into the UAE reached 10,000 between the later part of 2007 and 2015, especially during the time when the local real estate markets were performing really well.

The statistics reports by end of December 2015 revealed that, the UAE is home to around 72,000 residents with net assets of $1 million (Dh3.7 million) or more.

Over the next ten years, the number is expected to shoot by 50 per cent to 108,000. The report showed that the UAE will be one among the fastest growing countries in the Middle East for HNWIs. Jordan topped the overall list with a 75 per cent growth rate, followed by Iran (70 per cent), in the second place.

Trailing behind the UAE is Qatar, at 45 per cent, followed by Saudi Arabia (40 per cent), Lebanon (30 per cent) and Turkey (20 per cent). The study excluded other Gulf Cooperation Council (GCC) countries like Bahrain, Kuwait and Oman.

Between 2007 and 2015, the UAE had 60 per cent growth in millionaire population, just behind Qatar (80 per cent) and Jordan (70 per cent). The UAE has recently benefited from the migration of more than 10,000 HNWIs into the country “during the review period and well performing local real estate markets,” according to the report.

However, some factors will pose as a threat to the growth of HNWI population. For certain countries like Saudi Arabia, Lebanon and Turkey, ongoing political and religious tensions could be some of the constraints.

The report indicate that the declining oil prices are also a factor – crude oil prices declined heavily in 2014 and 2015, which will deter further business formation and construction in these countries going forward.