The UAE has become a magnet for British millionaires and billionaires, attracting the world's wealthy for its efficient tax system, stable politics and economy, and investor-friendly policies.

On the contrary, rising UK taxes and tougher regulations are pushing high-net-worth individuals to other tax- and business-friendly destinations such as Dubai, as many millionaires and billionaires operate from two bases.

The latest data from Henley & Partners points to a historic outflow of high-net-worth individuals from the UK, even as the UAE, and Dubai in particular, strengthens its position as a leading destination for globally mobile capital.

The 2025 Private Wealth Migration Report, released by Henley & Partners, revealed that the UK is projected to lose around 16,500 millionaires, taking an estimated $91.8 billion (Dh337 billion) in wealth with them, while the UAE is set to attract roughly 9,800 millionaires and about $63 billion in associated capital.

The UK-based steel magnate Lakshmi Mitta is the latest ultra-high-net-worth individual to relocate to the UAE.

“Yes. The global map of wealth is shifting in a subtle pace but unmistakable direction... With 142,000 millionaires expected to relocate worldwide this year, the UK's share of outflows is disproportionately high. The exact permanence of these moves can be debated, but the direction of travel is clear. Global wealth is reorganising, and the UK finds itself on the wrong side of that realignment,” said Shivkumar Rohira, CEO for EMEA at Klay Capital.

Nicholas Wright, head of institutional sales at Saxo Bank Mena, highlighted a trend of wealthy individuals from the UK relocating to the UAE, particularly to Dubai.

“While they still represent a relatively small share of the overall high-net-worth population in the country, their departure is beginning to have a noticeable impact on the economy. Many are seeking more favourable tax environments, and Dubai has emerged as a particularly strong destination, performing well above expectations in attracting this segment,” he said.

Wright added that global tax reforms significantly influence where wealthy individuals choose to locate.

“The UK's recent overhaul of the Non-Dom tax regime, which introduced higher tax rates and much stricter reporting requirements, has diminished London's traditional appeal as a safe haven for international wealth. This broader tightening of fiscal policies across the UK and Europe is becoming a clear push factor. As a result, many high-net-worth individuals and family offices are actively reevaluating their options,” added Wright.

Rohira attributed this shift to a widening imbalance between the UK's push factors and the UAE's pull factors.

He noted that abolishing the UK's non-dom regime has been the most significant shift.

“With the remittance basis removed and UK tax exposure now extending to global income, gains and worldwide assets, the country has effectively dismantled a decades-old pillar that attracted international entrepreneurs and high-net-worth families. That shift was compounded by the Spring Budget's expansion of inheritance tax, which now subjects individuals to IHT on their worldwide estates after a decade of UK residency, eroding a key estate-planning advantage that once anchored global families here,” he said.

The UK's Autumn Budget 2025 tightened the screws further. It introduced caps on trusts, raised dividend, savings, and property income tax rates across the board, and imposed a new mansion surcharge on homes worth £2 million or more. The Budget also froze thresholds, accelerating fiscal drag, and capped pension salary sacrifice at £2,000 from 2029.

“Taken together, these measures mark a decisive move toward a higher-friction, less predictable environment for wealth preservation, a shift that many HNWIs and UHNWIs now see as strategically material. Together, these reforms dismantle the UK's long-held status as a predictable, tax-efficient base for wealthy individuals,” said Rohira.

He also said that constant changes in tax, where people can live, and investment rules are making long-term planning harder for business owners and families who move around the world.

“Rising personal tax burdens, diminished trust flexibility, the abolition of non-dom advantages, and tighter settlement rules have collectively reduced the UK's ability to attract and retain top global talent, historically a cornerstone of its competitiveness. At the same time, the cost of doing business has risen sharply, from employer tax obligations to compliance overheads, adding further drag for high-growth firms and international founders,” he added.

From the UAE's pull perspective, Rohira noted that the Emirates' appeal to globally mobile wealth rests on a combination of tax efficiency, regulatory stability and a rapidly maturing wealth-management ecosystem.

“With zero personal income tax, largely tax-free capital gains and no wealth or mansion taxes, the jurisdiction offers a structural advantage over higher-friction environments like the UK. Its Golden Visa pathways, predictable regulatory regime and sophisticated infrastructure make it straightforward for entrepreneurs, family offices and UHNW families to base themselves there,” said Klay Capital's executive.

Moreover, he noted that it is not solely about tax. Dubai's global connectivity, modern lifestyle and strategic time-zone position make it an ideal hub for individuals operating across Europe, Asia, Africa and the Middle East.“Increasingly, HNWIs are adopting a dual-hub strategy, maintaining commercial footprints in the UK and Europe while domiciling in the UAE to optimise efficiency and mobility. As more wealth migrates, the ecosystem reinforces itself. Private banking, family offices, real estate and professional services continue to deepen, making the UAE a self-sustaining and increasingly dominant global wealth centre.”

According to Nicholas Wright of Saxo Bank, Dubai has positioned itself as a very attractive tax alternative.

“Dubai's tax framework remains extremely investor-friendly, with no personal income tax and a federal corporate tax that's fully aligned with OECD standards. That balance allows Dubai to stay competitive while maintaining transparency, which is exactly what globally mobile wealth is looking for today,” said Wright.

“Another key factor behind Dubai's appeal is the level of safety and stability it offers. It consistently ranks among the safest cities in the world, and that's backed by a very robust legal framework and effective law enforcement,” he added.

Importantly, another advantage is Dubai's time zone, which places it perfectly between Asia, Europe, and Africa, making it incredibly convenient for people who operate across global markets.“It essentially acts as a bridge for international trade and finance.”

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