Today's Edition
Mays Ibrahim (ABU DHABI)
The UAE remains a top choice for expatriates wishing to relocate abroad, thanks to its high quality of life and excellent investment opportunities, according to recent research by Lombard Odier, a global wealth and asset manager. Its 2024 UAE Expat Study delves into the needs, aspirations, and experiences of high-net-worth (HNW) expatriates residing in the country, highlighting the strong draw of the UAE for Western expats in particular. Key findings reveal that over 40% of Western expats pinpoint the high quality of life and investment opportunities as primary motivators for their move to the UAE. According to the study, young HNWs primarily relocate for business endeavours, leveraging the country's robust regulatory framework and entrepreneurial ecosystem. It also pointed out that a quarter of expatriates expressed a desire to settle permanently in the UAE, a sentiment amplified among older demographics, with nearly half of respondents aged 51 and above contemplating retirement in the country.
Demand for Wealth Management Expertise
The study highlighted an increasing demand for advanced wealth management advisory services in the UAE, driven by limited knowledge of local regulations and existing wealth plans, along with a growing desire among HNW individuals to stay or retire in the region. It revealed that over half (53%) of survey respondents prefer private banks for estate planning, a figure that increases to 65% among older and wealthier individuals, indicating a strong trust in these institutions. Additionally, a significant portion of Western expats (24%) cite sophisticated wealth management services as a motivating factor for relocating to the UAE.
Growing Interest in ESG Investments
The study pointed towards a growing interest among expats in environmental, social, and governance (ESG) investments, with plans to increase sustainable allocations in their portfolios from 14% to 20% within the next five years. "The large proportion of expats looking to purchase property in the UAE suggests that investing in sustainable real estate may also hold appeal. These are both areas where a trusted banking partner can provide valuable guidance". Conducted in November 2023, the study gathered insights from 150 HNW expats in the UAE, with field research conducted in collaboration with M/HQ and the Swiss Business Council. Respondents are Western expats from the Americas and Europe with a minimum of $1 million in bankable assets, who fall in various professional categories, including executives, entrepreneurs, independent contractors, and retirees.
