Today's Edition
ALLAN JACOB (ABU DHABI)
Abu Dhabi and Dubai figure prominently among the top five cities attracting both high net worth individuals (HNWIs) and companies seeking to relocate, with economic stability, good quality of life and tax incentives being the major attractions. The country's safe haven status clinches it for rich individuals and dynamic companies, according to real estate consultancy Savills.
Dubai and Abu Dhabi are the top two choices for individuals seeking to relocate, while Abu Dhabi bags the fifth position for corporates moving places. Singapore, Zurich and Auckland follow Dubai and Abu Dhabi for individual relocations, the real estate consultancy said in its Dynamic Wealth Indices report. Only Singapore, Seoul, New York, and London are ahead of Abu Dhabi among companies moving offices.
So why are these rich individuals and companies moving base? According to the survey, the UAE remains an oasis of calm, more so amid recent global economic disruptions and geopolitical tensions.
The economic environment in the UAE is robust, with effective government policies, few taxes and other incentives. Quality-of-life factors are "increasingly influencing where high net worth individuals and footloose companies choose to locate," Savills said.
"Abu Dhabi's sovereign wealth has notably attracted connected family offices and global corporates. In turn, this has stimulated office demand – with new businesses requiring space – and the luxury residential market. Arguably, the push of fiscal policies of other countries has heightened the UAE's pull," said Rachael Kennerley, Director of Research at Savills Middle East.
This means that Abu Dhabi has ranked in the top 5 for both, individuals and corporates looking to relocate, highlighting its range of benefits.
"The UAE is a particularly attractive option for HNWIs who bring their companies with them – it has a dynamic economy that's diversifying away from oil and attracting growing sums of corporate and sovereign wealth investment," a company statement said.
"Against an increasingly changeable geopolitical and economic backdrop, global wealth flows are evolving, as HNWIs and businesses adapt their decisions on where to locate," said Paul Tostevin, Director of Savills World Research.
"Traditional predictors of global wealth flows, such as government policies, taxes and incentives, and the presence of either innovative talent pools or existing communities of similar individuals, have always been key drivers of dynamic footloose companies and individuals, and will continue to play a major role, but a sense of place, and a high quality of living, are progressively the deciding factor when making location decisions."
Real estate is booming in both Abu Dhabi and Dubai. Prime residential capital values in Dubai rose by 6.8% in 2024, with prime office values growing by 7% in Q4 alone. In 2024, the residential sector recorded unprecedented transaction volumes, with a 47% year-on-year increase. Of this, over 4,600 units priced above Dh10 million were transacted during the year, marking a 23% year on-year increase.
Savills said six of the top 12 locations feature in both the corporate and individual Dynamic Wealth Indices – highlighting how business and personal priorities can often overlap as businesses want to locate in destinations that can provide the necessary talent to sustain them, following skilled workers who tend to prioritise a better quality of life. While lifestyle factors appeal chiefly to the individual, the knock-on effects of creating talent clusters – or HNWIs bringing their businesses with them when they relocate - make them a magnet for corporate wealth, too.
