A recent report by the international investment migration advisory firm Henley & Partners projects that around 4,300 Indian millionaires will relocate to new homes this year, with the United Arab Emirates emerging as a prime destination of choice. The UAE's growing allure as a business and lifestyle hub is drawing both the affluent and skilled professionals from India.
In recent years, the United Arab Emirates has emerged as a prime destination for India's high-net-worth individuals (HNWIs) seeking new opportunities and a change of scenery. While the outflow of millionaires may raise eyebrows, industry experts argue that this trend reflects the UAE's growing allure as a hub for business, investment, and quality of life.
According to a report by Henley & Partners, an international investment migration advisory firm, around 4,300 millionaires are projected to leave India for the UAE this year alone. However, this figure should be viewed in context, as the report notes, "India continues to produce far more new HNWIs than it loses to emigration."
Anand Sharma, the co-founder of Henley & Partners, explained, "The bulk of the millionaires who leave India tend to retain business interests and second homes in the country, which is a positive sign." This suggests that many of these individuals are not severing ties with India, but rather diversifying their investments and lifestyle across borders.
The UAE's allure is multifaceted, ranging from its tax-friendly policies to its cosmopolitan culture and world-class infrastructure. Dubai, in particular, has witnessed a surge in real estate investments from Indian buyers, who accounted for 40% of home purchases in the emirate last year – nearly double the figure from 2021.
Nikhil Kamath, the co-founder of Zerodha, India's largest stockbroking firm, believes the UAE's "friendlier policy environment" has made it an attractive destination for Indian entrepreneurs and techpreneurs. The UAE's Golden Visa program, which offers long-term residency to foreign talent, has been a significant draw, with Indians forming over 30% of Dubai's startup community.
Policymakers in the UAE have made concerted efforts to transform the country's economic model, moving away from the traditional reliance on oil and gas. By abolishing the requirement for companies to have a majority local partner and adopting a Monday-Friday work week, the UAE has positioned itself as a more business-friendly and globally connected hub.
Ultimately, the migration of India's affluent to the UAE reflects a broader trend of individuals seeking out opportunities and a higher quality of life in an increasingly interconnected world. As the UAE continues to position itself as a gateway to global markets and a hub for innovation, it is likely to maintain its appeal to India's discerning class, who see it as a land of new possibilities.
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