Dubai: The UAE is increasingly becoming popular as a haven for the rich and is forecast to add millionaires at a rate faster than some countries in the Middle East over the next decade.
The number of residents with net assets of $1 million (Dh3.7 million) or more will expand by 50 per cent between 2015 and 2025, according to a new research.
With the UAE’s millionaire numbers estimated to be around 72,000 as of 2015, the second-highest in the region, the population of high-net-worth individuals (HNWIs) in the country is expected to reach around 108,000 over the next ten years.
Data from the Middle East 2016 Wealth Report showed that the UAE will be 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 did not include other Gulf Cooperation Council (GCC) countries like Bahrain, Kuwait and Oman.
Between 2007 and 2015, the UAE posted a 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.
“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,” the report said.
“We expect millionaire migration out of certain countries in the Middle East to increase over the forecast period. In particular we expect a large number of millionaires to leave Turkey. Turkey is suffering from serious political and economic problems. It is also being negatively impacted by terrorism and a rising level of religious violence.”
Source : http://gulfnews.com/