What factors make the UAE a top choice for investors?

Dubai International Financial Centre (DIFC)

                                                   

What factors make the UAE a top choice for investors?

The UAE is solidifying its position as a preferred destination for wealthy individuals and investors, particularly given its combination of economic stability, an attractive tax environment, and advanced infrastructure.

This reflects the country's ability to offer exceptional investment advantages, along with long-term residency programs that provide investors and their families with stability in a secure and advanced business environment.

In recent years, a growing trend has been observed among wealthy individuals, especially from China, to seek residency and investment opportunities in the UAE instead of traditional destinations like Singapore. This reflects their frustration with the difficulty of establishing themselves in traditional Asian markets.

The UAE also benefits from its strategic location between Asia, Europe, and Africa, making it an ideal hub for international business. This, coupled with a flexible investment environment, a thriving real estate sector, a high level of security, and a luxurious quality of life, makes it one of the world's leading destinations for wealthy individuals and investors seeking sustainable growth opportunities and safe assets. This underscores the significant shift in the dynamics of global wealth flows.

Wealthy Chinese

In this context, a report in the British newspaper, the Financial Times, indicates that: A growing number of wealthy Chinese are trying to establish family offices and secure residency in the Gulf.

This trend reflects increasing frustration with the growing difficulty of establishing themselves in Singapore, which has long been a popular destination for wealthy Asians. Last year saw a surge in applications from Chinese nationals seeking to relocate to Dubai and Abu Dhabi, according to private bankers and advisors to the world’s wealthy.

Establishing family offices facilitates the process of obtaining citizenship or residency.

The report quoted Mike Tan, head of global wealth planning and family advisory at Standard Chartered Bank in Singapore, as saying of those inquiring about setting up family offices in the Gulf: “They are attracted to the Gulf because of the ability to obtain residency status, live there, and enjoy stability.”

Tan said that the number of inquiries about Dubai received by Standard Chartered Bank from clients in East Asia rose significantly last year, although the bank declined to provide figures.

He says the UAE's Golden Visa, which grants a 10-year residency and is available to investors, certain family members, and some highly skilled workers, is "very attractive, stable, and tax-friendly."

Unique Advantages

Says economist Jamal Al Jarwan, former Secretary General of the UAE International Investors Council. The UAE has become one of the most attractive destinations for global investors and wealthy individuals thanks to a combination of favorable tax policies, advanced infrastructure, and long-term residency programs.

The country's tax environment is among the most competitive globally. There is no personal income tax for residents, allowing individuals to retain almost all of their income. Furthermore, there is no tax on capital gains or inheritance, making wealth planning for future generations more appealing.

The corporate tax rate of just 9 percent above a certain threshold, coupled with the facilities offered by free zones, further enhances the UAE's position as an open global investment hub.

Long-term residency programs, such as the Golden Visa, offer investors and high-net-worth individuals the opportunity to reside for up to ten years, with benefits extending to their families. This provides them with stability and sustainability in a safe and advanced business environment. Real estate investment or company establishment in the UAE are also effective pathways to residency.

Dubai Leads the Way

According to a report by global real estate brokerage firm Savills Plc:

Dubai tops the list of the world’s most affluent cities, ranking 30 cities worldwide based on their appeal to high-net-worth individuals.

Dubai attracts a wave of wealthy individuals seeking attractive tax advantages, including exemptions from inheritance, capital gains, and wealth taxes, in addition to robust infrastructure for families and high levels of security.

The wealthy are leaving Britain... and the numbers are shocking.

The report added that the number of individuals with a net worth exceeding one million US dollars increased by more than 680,000 in 2024, a 1.2 percent year-on-year increase, predicting that more than 5 million new millionaires will join the ranks by 2029.

Investment Advantages

Waddah Al-Taha, a member of the National Advisory Council of the CISI Institute and an economic expert, told Sky News Arabia's "Economy" website:

The investment advantages enjoyed by the UAE have made it the top-ranked country in terms of investment attractiveness and attracting foreign capital through foreign direct investment. This leadership has been ongoing for years, and the UAE is expected to maintain its leading position in 2025 in the Middle East and North Africa region.

These advantages are not limited to advanced infrastructure or a strong banking system, but also include a flexible legal environment that adapts to international changes quickly and efficiently, creating exceptional appeal that has made the UAE a preferred destination for global capital.