According to the Swiss multinational banking giant UBS, the United Arab Emirates (UAE) has profited from a spike in global billionaire emigration and has quickly emerged as one of the top destinations for massive wealth transfer.
The Swiss banks’ report noted that the total wealth of UAE billionaires increased by 39.5% to USD 138.7 billion in the Middle East and Africa, and there will be 18 billionaires in total by 2024.
In addition to a 17% increase in the wealth of billionaires worldwide, the wealth of billionaires in EMEA has also increased by 17%, reaching USD 3.07 trillion, and the number of billionaires has increased from 70 to 728.
Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management, claims that over USD 400 billion worth of billionaires have left the country in the last four years, with the MEA region drawing the largest amount of billionaire capital.
“Over the past year, the total number of billionaires had risen to 2,682 from 2,544 a year earlier, and their worth to USD 14 trillion from USD 12 trillion. With the billionaire population now ageing, they are looking beyond their borders as their families grow. Our study has shown that ease of legal structures, which supports a transfer of wealth, coupled with healthcare and education, have benefited countries such as the UAE, US and Switzerland, which have seen an influx of billionaires over the past decade,” Cavalli said, as reported by Zawya.
According to UBS data, 176 billionaires have relocated since 2020, indicating that they are doing so more frequently. The expansion of private family offices in the United Arab Emirates is another indication of this wealth transfer. Last December, Egyptian tycoon Nassef Sawiris relocated his family office to Abu Dhabi.
Subsequently, numerous reports claimed that Nigerian billionaire Aliko Dangote, the richest man in Africa, was establishing a family office in Dubai.
“We are seeing sophisticated family offices in Asia and Europe looking to set up in the UAE for greater growth opportunities. There is quite a natural and dynamic creation of wealth in the country in numerous different areas and this key for investors who are looking beyond their turf where they initially created wealth. Innovation is an absolute key, and the UAE is at the centre of this,” Cavalli concluded.