According to a new survey, the emirate of Dubai had an 18% increase in the number of high-net-worth individuals in the first six months of 2022, making it the 23rd most popular location in the world for ultra-wealthy citizens.
According to a study by New World Wealth, a research firm that tracks the wealth and travel of millionaires, multimillionaires, and billionaires globally, and Henley & Partners, a research firm that tracks private wealth and investment migration trends globally, the city’s HNWI population increased to 67,900, up from 54,000 in June last year.
In 2022, Dubai have 13 billionaires, one more than the previous year, and 202 centimillionaires, up from 165 the year before. According to the research, there were 3,170 multimillionaires in June compared to 2,480 in June of last year.
“The first half of 2022 was a negative period for global wealth formation,” said Andrew Amoils, head of research at New World Wealth.
“Worldwide high-net-worth individual numbers were down by 5 percent in the six-month period to June 2022. This drop was mainly due to the poor performance of major stock market indices — the S&P 500 declined by 20 percent, while most other major indices were also down by similar percentages.”
According to the report, HNWIs are those with a net worth of at least $1 million, while multimillionaires have a net worth of at least $10 million. Millionaires have assets worth $1 billion or more, whereas centimillionaires have a net worth of $100 million or more.
According to a March report by international real estate consultancy Knight Frank, the number of ultra-high-net-worth individuals (UHNWIs), or people with a net worth of $30 million or more, increased globally by 9.3% last year as the global economy recovered from the pandemic and equity markets rose.
Globally, 52,000 more people joined the ultra-wealthy sector last year. In 2021, wealth growth was distributed equally across all geographical areas, with North America taking the lead with a 12.2% increase in wealth for UHNWIs.
In the meantime, according to separate research published in July by management consulting firm Boston Consulting Group, UHNWIs will account for 41% of the UAE’s wealth in 2021 and will account for 43% of it in 2026.
According to the New World Wealth and Henley & Partners research, Dubai is the region’s HNWI capital, followed by Tel Aviv, Israel, with 42,400 millionaires.
According to the study, the capital of the UAE, Abu Dhabi, came in third with 23,800 millionaires, ahead of Doha (21,300), and Riyadh (17,200).
“The influx of high-net-worth individuals migrating to the Middle East — and particularly the UAE — is gaining momentum,” said Philippe Amarante, managing partner at Henley & Partners and head of the company’s Dubai office.
“The UAE has also recently implemented new regulations to provide additional immigration options for digital nomads, start-ups, inventors, and retirees, among others, and further benefits for family members who reside in the country. It is this efficient and nimble approach by policymakers that consistently puts the UAE ahead of the curve in the global competition for wealth, talent, ideas, and projects.”
With 345,600 millionaires, New York City topped the study’s ranking of the richest cities worldwide. More than $3 trillion in total private wealth is held by New Yorkers, more than the majority of the major G20 nations.
Tokyo, the financial center of Japan, comes in second with 304,900 HNWI residents, while the San Francisco Bay Area, which includes Silicon Valley and the city of San Francisco, comes in third with 276,400 millionaires living there.
The city-state of Singapore (249,800) and London (272,400 millionaires) round out the top five cities, according to the report.
Over the past ten years, London has seen a steady exodus of billionaires, many of whom moved to commuter cities nearby, according to the survey.
With 192,400 millionaires, Los Angeles is rated sixth on the index, after Chicago (160,100), Houston (132,600), Beijing (131,500), and Shanghai (130,100).
Cities with robust oil and gas industries, such as Riyadh, Dubai, Luanda, Abu Dhabi, and Doha, outperformed others in terms of millionaire growth in the six months leading up to June 2022, the survey found.
“This is mainly due to stock market rises in these markets and a big increase in Brent crude prices,” Mr. Amoils said.
“Other interesting cities on the fastest-growing list include Lugano, a popular Swiss hotspot for affluent retirees from Europe. Bengaluru, India is also gaining millionaires due to its rapidly growing IT, biotechnology, and business process outsourcing sectors. Hangzhou, China is another wealth magnet to watch.”
By 2030, Dubai, Mumbai, and Shenzhen, China, are anticipated to rank among the top 20 richest cities, he continued.
Shenzhen has 43,600 millionaires living there, compared to 60,600 in Mumbai.