Why is the UAE a Safe Haven for Wealthy High-net Worth Families?
There is no doubt that the UAE has crafted a legacy for itself that is unmatched and unparalleled, resulting from a unique blend of cultural diaspora and innovative modernism. Very few nations in the world have experienced as glorious a makeover as that of the UAE. In the past few decades, the country has established itself as a bona fide economic powerhouse and gained global dominance that has made the world look at it with awe.
Not only has it nurtured a landscape that is pleasing to the eye for its scenic aesthetics, but it also has cultivated a lifestyle that is defined by luxury. In its journey towards becoming a major international trade hub, it has become a top choice for high-net-worth families from across the globe to settle down in.
In this space, we are going to take a close look at the factors that have contributed to the UAE becoming a safe haven for High-Net Individuals (HNI) families and why one should rightfully look at its real estate market for profitable investments.
7 Prime Reasons for the UAE Being a Sanctuary for the Rich Lifestyle
Foreigners view the UAE as a sanctuary for the ultimate posh and opulent lifestyle. The UAE Government also provided opportunities for foreigners to buy property and even to get a mortgage for non-residents in the UAE. But what has led to this perception, and what is the crux of reality?
We can certainly attest to the fact that the UAE is worth living in, and the idea it generates is backed up by reasonable factors. We are here to get you familiar with those factors.
Advantages of Strategic Geographical Location
The vigorous nature of the UAE’s economy is strengthened by its geographical positioning, giving it a strategic advantage that has propelled it to the highest ranks of success globally. The UAE is the gateway to the Middle East and serves as a great connector between Asia and Africa. Additionally, its proximity to Europe gives it an even greater edge to dominate the international trade sector.
With its ease of access to three continents, it only makes sense that it garners so much attention from investors who want to finance and benefit from major profitable businesses of varied interests. Its ports and airways are major export and import players in the global market and thus are key factors for the dependencies of the share market.
As such, it serves as the perfect breeding ground for major corporations, enterprises, businesses, and industries that generate billions of dollars worth of investments annually. Needless to say, high-net-worth individuals in the UAE, or HNWI as they are better known, opt to settle down here to manage businesses and families close by.
Booming Real Estate Market
Luxury properties are synonymous with the real estate market of the UAE. Whether it is the picturesque Ras Al Khaimah or the undisputed Dubai, the magnificent Abu Dhabi or the scintillating Sharjah, the real estate market of these varied gems of the UAE give each other a run for their money. When it comes to the display of opulent architecture, this is the country to look at.
Home to reputed property developers, you will get some of the best designs and architectures anywhere in the world in the UAE. From lavish villas to stylish apartments, from branded townhouses to gorgeous penthouses, the diversity in residential units is through the roof here. In addition, the real estate for commercial properties also leaves no stone unturned in this country.
It has come a long way from where HNI families across the globe used to only choose the landscape of this nation to build holiday homes. Nowadays, they are legitimately making long-term investments not just for recreation but for profitability, owing to high rental yields and capital returns.
Relaxed Taxation Policies
Speaking of profitability, the relaxed taxation policies initiated by the Government of the UAE have played a pivotal role in capturing the attention of foreign investors. Since the UAE doesn’t levy income tax on people, it leaves huge room for profitability.
Keep in mind that there is a 5% tax imposed on the purchase of goods and services that is levied at every stage of the supply chain. As there is less burning of pockets through payment of additional taxes on income, people can sigh a breath of relief. Building an empire here for high-net-worth families becomes even more plausible.
There is an increased opportunity for liquidity for investors, making investments in this nation worth every penny. This relaxed taxation policy is a boon, especially in a city like Dubai, where real estate is always in demand. Without a doubt, this is among the top reasons for property investment in Dubai.
Opulent Quality of Life
Be it the medical care standard or the educational excellence, the prime needs for a healthy lifestyle are met with the deepest care and consideration in the country. The presence of HNWI families means there is a heavy demand to meet the requirements for a high-quality life. And there is no corner untouched in producing the same for them.
Not to mention, the food and retail industries are also among the most enviable in the world here, being powered by some of the best talents and skilled professionals across the globe. With uninterrupted views of magnificent landscapes and stunning skylines, access to an opulent lifestyle is manageable here more than in most other places in the world.
In addition, it is also one of the most technologically advanced nations in the world, which means you will have all the amenities you need for a proper modern urban life. At the same time, it doesn’t compromise with the sustainability factor through various projects such as the Dubai 2040 Urban Master Plan and Dubai Clean Energy Strategy 2050. UAE never ceases to lower its carbon footprint without affecting the opulence of its mega-structures and the lifestyle of its residents.
Feasible Immigration Programs
The Government of the UAE has gained significant praise from the global community for its relentless efforts to foster healthy and strong relationships with foreign nations. Its immigration programs have been applauded for how they make settling down accessible for people of foreign nationalities.
Its visa programs have proven to be game-changers and have paved the way for people from around the world to make a living in its beautiful soil. The UAE Golden Visa, which offers long-term residency, is especially noteworthy. Not only does it not require a local sponsor, but it also allows family inclusion and exemption from various employment restrictions to its holders.
Moreover, the Blue Residency Visa has also been noted for its encouragement to a healthier Earth, as it rewards people who have made significant contributions to the betterment of the environment. In the process, it inspires people across the globe to maintain sustainability.
Multicultural Hub
The UAE is as diverse a nation as can be. Its multicultural appeal stems from people across varied continents settling down in its land and contributing to the merging and fusion of varied cultures. In an ecosystem where there is a blend of multiple heritages and cultures, all of which retain their originality, this is a perfect space for people to thrive.
The diverse landscape allows people to be their best selves and adds to the essence of a worldly community within the borders of a single nation. This explains so much as to why people of varied backgrounds feel the comfort and safety of settling down in this country.
With an appreciation for foreign investors and a welcome gate to diversity, Ultra-High-Net-Worth Individuals (UHNWI) view the UAE not only as a safe haven to settle down but to practice their businesses and cater to a wider target market.
Political Stability
The premium quality of life that UHNWIs in Dubai and the rest of the UAE experience is thanks to the political stability in the area. This is a highly underrated aspect that is often overlooked. UHNWIs have to maintain a high level of security owing to their need for wealth protection, and the UAE provides them with the security blanket they need.
The stable political environment and a very low crime rate harbour a peaceful ambience, which is paramount for a healthy existence as well as for the running of businesses and enterprises smoothly. This further accentuates the appeal of this Middle Eastern nation in the eyes of foreigners.
By serving as a safe deposit for wealth for UHNWI, the UAE continues to inspire a steady inflow of wealthy millionaires to its shores and adds to globalisation in the process.
To Conclude
The UAE has become a strategic safe haven and a reliable cornerstone for high-net-worth families due to the considerable governmental efforts in securing its landscape. In addition, the relaxed taxation policies, thriving real estate market, beautiful landscape, strategic geographical location, political stability, and viable long-term residency programs have time and again invited wealthy families to this beautiful sanctuary of a nation.
Its legacy as an economic power is now accessorised with its role of playing a hub for wealth. With more growth on the horizon, the nation has truly experienced glory like no other, and for all the right reasons.
FAQs
Why are high-net-worth families moving to the UAE?
High-net-worth families are steadily moving to the UAE because of a combination of business opportunities, tax advantages, political stability, and a high-quality urban lifestyle. The UAE is also seen as a safe and secure place to live and raise a family, as it is supported by a stable economy and a focus on bespoke amenities.
How safe is the UAE for families who want to relocate?
Yes, the UAE is considered extremely safe for families because of its low crime rates and strong law enforcement policies. Both Dubai and Abu Dhabi are consistently ranked among the safest cities in the world. They offer a secure environment for children in public spaces, and their top-tier educational institutions and world-class healthcare further enhance family safety.
What residency options are available for high-net-worth families?
High-net-worth families have various long-term residence visa options, most notably "Golden Visa" programs, which allow for residency through investment in real estate, business projects, and government bonds, among others. There is also a 5-year Retirement Visa and a 2-year Investor Visa that high-net-worth families can enjoy as long as they fulfil the eligibility criteria for them.
Is the UAE banking system secure for high-value assets?
Yes, the UAE banking system is considered highly secure for high-value assets since it is protected by stringent anti-financial crime measures, a robust regulatory framework, and advancements in technology. The Central Bank of the UAE (CBUAE) is tasked with enforcing strict compliance standards, such as enhanced security measures against money laundering and cyber threats and regular audits to ensure security and transparency.
Can families easily pass wealth to the next generation in the UAE?
Wealth transfer to the next generation in the UAE requires methodical and careful planning to avoid complications, since the default laws may not always align with a family's wishes. While the UAE offers legal frameworks and tools to help, families need to proactively use them to override the standard international regulations or Sharia-based succession laws and properly address potential cross-border issues.
Is it safe for wealthy individuals to invest in UAE real estate?
Yes, it is considered safe for wealthy individuals to invest in the real estate markets of the UAE because of its tax-free environment, stable economy, and safety. Dubai, especially, is considered a safe city with an extremely low crime rate and immense business potential. However, potential investors must thoroughly research property types and specific market conditions, such as freehold vs. leasehold ownership, before making their decision.
How can BNW Developments help wealthy families with investment planning?
At BNW Developments, our consultants bring their years of expertise in the field to assist wealthy families in making smart and pragmatic decisions. By guiding them about the nuances of the real estate markets of the UAE, our consultants ensure the investments these families make are safe and profitable.