Other BriefingsChina’s High-Net-Worth Individuals Flock to Dubai in Search of New Lucrative Business Opportunities
China’s high-net-worth individuals (HNWI) are attracted by the favorable policies and stable political and economic environment in Dubai.
By Lucia Brancaccio
In the evolving landscape of global wealth, Dubai has emerged as the preferred destination for numerous wealthy families and entrepreneurs from around the world, who are opting to relocate and set up their businesses in the major financial hub of the United Arab Emirates (UAE).
Among these, a surge in the influx of high-net-worth individuals (HNWIs) from China has been witnessed over the past years, driven by favorable policies and opportunities for business growth.
Influx of Chinese millionaires
Henley & Partners reported that in 2023, the UAE emerged as a prominent choice for high-net-worth individuals seeking to relocate, with the region witnessing a significant influx of around 4,500 millionaires. This surpassed the pre-pandemic record of 1,000 high-net-worth individuals per year. In contrast, China experienced the highest outflow of HNWIs in 2023, losing approximately 13,500 millionaires, a substantial portion of whom chose to settle in Dubai.
Prominent players, such as Noah Holdings, a Chinese wealth manager with a substantial US$23 billion in client assets, are actively participating in this movement. Noah Holdings is anticipated to obtain business licenses in Dubai by the end of the year. Similarly, Hong Kong-based Landmark Family Office is planning to establish offices in the area. According to Reuters, this trend is being embraced by many other Chinese entrepreneurs as well.
In 2024, the upward trajectory of millionaires selecting Dubai as their preferred destination is expected to persist.
Dubai’s pro-business policies
Dubai’s appeal is mostly due to its pro-business regulations, acting as a compelling force in drawing in wealthy individuals from around the world. Noteworthy policies that contribute to this trend include:
- The “golden visa” system, which grants long-term residence to foreign investors, entrepreneurs, and talented individuals who make significant investments to the country;
- The presence of “Free Zones”, which provides tax benefits and allows companies to have complete ownership. They also offer exemptions from corporate and income taxes, as well as customs duty exemptions; and
- The newly launched “Family Wealth Centre”, which serves as a guide for wealthy individuals and businesses to overcome challenges ranging from digitalization, cultural issues, governance, and succession planning.
The policies outlined above contribute to the creation of a favorable and flourishing environment for conducting business in the Dubai emirate.
Additionally, Dubai and the UAE benefit from access to modern infrastructure, besides from having a politically stable and neutral environment, a strategic location bridging Europe and Asia, and an increasingly diversified economy. These collectively make it appealing to Chinese entrepreneurs seeking to expand their personal wealth and diversify investments beyond the traditional hubs of Hong Kong and Singapore.
Close China-UAE relations
The surge in Chinese HNWIs relocating to the UAE is also a further indicator of China’s recent foreign policy priorities. Both China and the UAE are now placing greater emphasis on fostering amicable political and, especially, economic ties.
China has become the UAE’s primary non-oil trading partner globally, with the UAE ranking as China’s second-largest trading partner and active supporter of the Belt and Road Initiative. The UAE presently hosts more than 6,000 Chinese companies.
This friendly political and economic relationship between China and the UAE is making Dubai a more stable destination for HNWIs relocation, especially in light of strained relations between China and Western markets.
