The wealthiest city among Middle East countries
The wealthiest city among Middle East countries
We are all aware of the status of Dubai among the Middle East countries as it is one of the most sought out destinations among HNWIs. The kind of luxury, comfort, and safety people dream of are all met in Dubai. It is one of the thirty wealthiest cities in the world. According to the NW wealth report of 2021, Dubai still continues to be the wealthiest city among the Middle East countries. The top five of the wealthiest cities among Middle East countries include two cities from UAE. Dubai has topped the chart with the US $517 Billion. UAE become the wealthiest country with the US $870 billion. Here, total wealth refers to the private wealth held by individuals in any country. It includes all the assets held by the individual except for government fund.
HNWIs migrants in UAE
Dubai has approximately 52,100 HNWIs which makes it the wealthiest city in UAE. Form last 20 years or so, UAE has been the biggest recipient of HNWIs (High Net Worth Individuals).
There are approximately 83,000 HNWIs living in the country out of which, it is estimated that over 35,000 HNWIs have moved to the UAE over a period of 20 years from 2000 to 2020. A large number of them are from India, Africa or other Middle East countries.
Reasons for moving to UAE
Following can be attributed for HNWIs to move to UAE.
• It is the top safe haven in MENA (Middle East & North Africa) region.
• High Income economy
• Good healthcare system
• Low tax rates
• International business hub
• Luxury Hub with world class shopping and restaurants
• Top end apartments and villas
• Good international schools
• Yachting and beaches
• Amended laws to fit the multicultural.
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Dubai the wealth Hub
Dubai which has topped the chart of NW wealth Report 2021, has 52,100 millionaires, 2, 430 multi-millionaires and 10 billionaires. UAE is the largest wealth market in Middle East. There are approximately 3,90,000 HNWIs living in Middle East countries out of which approximately 83,000 HNWIs in UAE with net asset of US $ 1 million or more is living in UAE It is seen that the real estate has a major impact on the economy of the country. In UAE 12% of the total wealth acquired is from the real estate sector. The special move by the Government of UAE to amend nationality law to attract more foreign talent to contribute to the countries development is to attract more high earners.
Prime Property Index
In case of average Middle East HNWIs residential property constitute 25% to 30% of the net asset. Popular property for them includes apartments, beach front villas and home in residential estates. Dubai is the second most expensive city for property with US $ 7,200 per square meter in Middle East.
Luxury Hub
Dubai is the main luxury hub in Middle East. The luxury sector in Dubai generates approx. US$ 7.0 Billion per year. Most of it is generated via luxury car and luxury hotels. The luxury fashion sector in Dubai is also huge with most top brands having outlet in Dubai malls.
The following Dubai Hotels are popular among HNWIs
• Burj Al Arab- Dubai
• Atlantis Palm – Dubai.
Per Capita Wealth
As per the New Wealth World, wealth per capita is highest in the UAE regionally at $89000 compared to $71300 in Qatar and $15800 in Saudi Arabia. While Israel per capita wealth is $86500, which is at second position after UAE. Turkey & Iran is at lowest in the Middle East relatively at $5800 and $4800. This figure refers Dec 2020 data to the average wealth of a person living in each country. It should be noted that the average HNWI worldwide has the bulk of their wealth tied up in residential property and equities, so large movements in these two segments heavily impact the total private wealth held in a country.
What our experts say:
Dubai has always proved itself among the global leaders when it comes to the best city to cater to the HNWI. Leaders of the UAE have greater visions and high ambitions. They have the capacity to deliver the best of the world that anyone can dream of, which is not limited to infrastructure, luxury, safety and religious freedom.