Millionaire Dubai
Juliane Bari
According to the latest report by Henley & Partners, the majority of millionaires and high-net-worth individuals are expected to primarily move to the UAE from India. That is followed by substantial numbers from the UK and Russia.
The Henley Private Wealth Migration Report for 2023 anticipates that 4,500 millionaires will choose to relocate to the UAE during this year. In 2022, the UAE outperformed global expectations by attracting 5,200 high-net-worth individuals.
This frenzy extends to hotel development. By the end of this year, the city will have more than 154,000 keys on offer to travelers, according to data from Knight Frank. It is dominated by luxury: Looking at the pipeline over the next seven years, 46% of the planned 24,500 keys are within luxury properties. Another 25% is for upscale, and just 4% is for 3-star hotel rooms.
The official Dubai tourism authority has said it is trying to push for greater product diversity and affordability in the city. But developers and operators continue to push for trophy assets, which leads to rising rates.
Dubai ranked 21st on the list that ranked the top 50 cities based on the raw number of high-net-worth individuals (HNWIs). The only other Middle Eastern city that made the top 50 was Tel Aviv in Israel, with 24,300 millionaires.
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Becoming a millionaire in a short time, such as 3 years, is a challenging endeavor regardless of where you are, including Dubai. While Dubai offers various opportunities for business and investment, achieving such a financial milestone typically requires careful planning, dedication, and, most importantly, a significant amount of capital to start with. Here are some general steps that individuals might consider, although success is not guaranteed:
1. High-Income Career: Pursue a high-paying career or profession that offers substantial salary and bonuses. This may involve acquiring advanced skills, education, or certifications to increase your earning potential.
2. Entrepreneurship: Start a business or invest in a profitable venture. Dubai has a thriving business environment, but entrepreneurship involves risks, and success may take time. Conduct thorough market research and consider the feasibility of your business idea.
3. Investment Portfolio: Build a diversified investment portfolio that includes stocks, real estate, and other assets. Investment returns can grow significantly over time, but they also come with risks.
4. Side Hustles: Explore additional sources of income through side hustles or freelance work. The gig economy is on the rise, and Dubai offers various opportunities in sectors like technology, tourism, and hospitality.
It's important to note that achieving millionaire status in a short time frame carries inherent risks, and there are no guarantees of success. Prudent financial management, diligent planning, and the ability to adapt to changing circumstances are essential. Additionally, maintaining a healthy work-life balance and personal well-being should always be a priority.
As your wealth begins to grow, multiple new business or investment opportunities are at your disposal, which can eventually equip you to relocate to another country or maybe even enable you to retire early.
While it takes focus and discipline when it comes to saving to become a millionaire in your 30s, the reality is those who save limit it to some comfortable percentage of their income, like 10 per cent.
Tip #1: Save an uncomfortable amount of your income: Veteran investors are of the opinion that if you currently save only a comfortable 10 per cent of your income, aim 30 to 40 per cent higher.
Tip #2: Debt is a detour on the road to becoming a millionaire: Billionaires often recommend against keeping debt when saving to be a millionaire young. However, realistically speaking, that is not the case.
This is a real variable, since people have different levels of debt. For one individual or couple, it may mean paying off a couple of credit cards. For another, it may be a car loan and multiple credit card debt.
Tip #3: Invest the profits you make from a side hustle: As you are now saving as much money as you can from your salary, the next step is finding ways to make even more money and invest it.
Although billionaire investors making most of their riches through market investments, if not investing your money right away, you need to at least consider a secondary source of income before investing.
Wealth managers and financial planners agree that if your goal is to build your wealth, you need money from means other than your full-time job, which can be through consulting, building websites, or a blog.
The reasoning is that the future value of this extra income will be exponentially greater than spending it today, like for example, this can be used for any miscellaneous daily expense that is unaccounted for.
Tip #4: Invest in only what you thoroughly know, confident of: Once you make more money, with a side hustle and investing the profits, you need to figure out how to maximise the return on your investments.
The stock market tends to favour things that are hip, useful, and essential. To pick a good stock, analyse what everyone else does and monitor social media platforms where investors come together to discuss.
The strategy would have brought in high investment returns in the last 10-plus years. A small investment in Amazon alone would have generated over Dh100,000 in profit. So, invest in growth stocks you believe in.
Verdict: The early success of billionaires like Mark Zuckerberg and Bill Gates is certainly not the norm, and on average, it takes self-made billionaires 32 years to make it big, according to global research. Warren Buffett's goal as a kid was to become a millionaire by the time he was 30. And he did it.
Dubai was declared the city with the highest number of millionaires in the Middle East with New York city topping the global list, revealed an annual ranking by Henley & Partners this week.
Dominic Volek, Group Head of Private Clients at Henley & Partners, said 7 of the top 10 wealthiest cities in the world are in countries that host investment migration programs that actively encourage foreign direct investment in return for residence or citizenship rights.
Lessons can be drawn from Monaco, a small city-state nestled on the French Riviera, which stands as a testament to the profound impact of drawing in and keeping the ultra-wealthy and converting this rather small nation into an economic powerhouse, with one of the highest GDP per capita globally.
Another excellent example is Singapore. In March 2019, the Monetary Authority of Singapore and the Economic Development Board collaboratively set up a team dedicated to the attraction of single family offices (SFOs), aiming to bolster Singapore's position as a leading global center for wealth management and family office operations. A few years later, this dedicated strategy had led to the incorporation of more than 1,000 SFOs alone in 2022.
As per the economic model, demand drives value. With its immigration component a key consideration for SFOs and centi-millionaire attraction, the Singapore Global Investor Program (GIP) underwent new eligibility criteria in March 2023, now requiring Singapore-based SFOs to manage assets worth a minimum of SGD 200 million. Out of this, at least SGD 50 million should be brought into Singapore and invested specifically in approved exchange-listed companies, qualifying debt securities, funds overseen by licensed Singaporean managers, or equity contributions to unlisted Singaporean businesses. To further deploy more capital into the economy and create direct benefit for the local financial system, the permanent residence permit (re-entry permit issued for an initial period of five years) can only be renewed if the successful applicant has employed at least 10 individuals, five of which must be additional family office experts and at least three must be Singaporean citizens.
These revised stipulations underscore the potential value addition that SFOs and centi-millionaires can bring into an economy, thereby emphasizing the imperative for GIP investors to augment their investments in the domestic financial landscape and concurrently foster the creation of high-caliber employment opportunities for the local population.
The recent establishment of a family office branch in the Abu Dhabi Global Market by Ray Dalio, the Founder of Bridgewater Associates, exemplifies the rising attraction of Abu Dhabi to the global financial aristocracy. This move not only signifies the emirate's growing prominence but also attests to its robust financial infrastructure and strategic vision.
However, Abu Dhabi's offering extends beyond mere fiscal incentives. The efficient issuance of long-term visas, coupled with a compelling value proposition, emphasizes safety and protection without compromising the dynamic agility of its ecosystem. This unique blend fosters an environment conducive to pioneering economic initiatives and maps a trend we see around the world. If a government wants to attract private capital, it must develop and deploy a unique value proposition relevant to specific audiences.
The Kingdom of Saudi Arabia's Vision 2030 is a transformative blueprint aimed at diversifying the nation's economy beyond oil and fostering a vibrant society, a thriving economy, and an ambitious nation. Spearheaded by Crown Prince Mohammed bin Salman, this vision seeks to reduce Saudi Arabia's dependence on oil, develop public service sectors, and promote tourism, entertainment, and investment.
The Public Investment Fund serves as the big engine and is investing globally across a myriad sectors and acts as a magnet to catalyse attractive domestic projects of unseen size and complexity. While certain regulatory framework enhancements are still under review, the kingdom has already launched dedicated streams to attract wealthy clients via its Premium Residence options. Equally important, it has also laid the pathway to citizenship for the brightest minds, which may change our collective tomorrow. This attraction of intellectual capital paired with enormous motivation for change and large funding creates comfort and opportunities for discerning centi-millionaires looking to engage in exciting ideas with first mover advantages.
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