Dubai Reinforces Its Position As Safe Haven For HNWIs And UHNWIs
Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., cites that the UAE has become a prime destination for high-net-worth individuals (HNWIs), with a record 6,700 millionaires expected to call the UAE home by the end of 2024;if this forecast is met, it will result in the country boasting nearly twice as many HNWIS as the United States’ 3,800 millionaires and Singapore’s 3,500 high-net-worth individuals by the year’s end.
Furthermore, the number of ultra-high-net-worth individuals (UHNWIs) is expected to rise a further 60% by 2026, positioning Dubai as the city with the highest concentration of wealthy individuals in the Middle East, with a collective networth exceeding AED 3.7 trillion. This growth is significant relative to the existing number of millionaires in the UAE, which stands at 116,500. In comparison, forecasts predict that Singapore’s UHNWI population will expand by 17.7%, reaching around 5,300 by 2027. This influx is driven by the desire not only to preserve but also to grow their wealth in a favorable and economically booming environment.
The migration of HNWIs and UHNWIs is reflected in Dubai’s thriving luxury real estate market, one of the many avenues for investments that this segment typically pursues to grow their wealth. During the first quarter of 2024, a total of 105 homes priced over $10 million were sold, marking a 19% increase compared to the previous year. Moreover, the forecast for 2024 indicates that these wealthy investors will spend as much as $4.4 billion on Dubai property this year, indicating a staggering 76% increase from 2023. HNWIs and UHNWIs require sophisticated strategies to navigate their unique financial goals, as their higher risk tolerance and access to exclusive investments necessitate a nuanced approach.
Bas commented: “As we see more wealthy individuals seeking to optimize and grow their wealth, they are increasingly drawn to dynamic markets like Dubai. The appetite for investing here is high and will keep growing due to the combination of robust investment opportunities as well as effective wealth management strategies that can significantly enhance their financial success and long-term stability. Seeing as Dubai is home to over 90% of the UAE’s scale-ups, it shows that this city means business; and that makes it the top pick for investment by HNWIs and UHNWIs, alongside the opportunity to harness unrivalled business opportunities and be supported by a diverse talent pool that fuels this economic engine and technology.”
HNWIs and UHNWIs must stay prepared to take advantage of many investment opportunities in today’s innovation-driven, tech-centric business environment, from space exploration ventures to technology startups and renewable energy projects. While they require a substantial initial investment, these high-risk, high-reward opportunities have the potential to yield extraordinary returns. For example, the UAE’s investment tech market is set to soar to $313.5 million by 2025, forecasting a 145% growth. By staying prepared, HNWIs and UHNWIs can capitalize on these lucrative investment opportunities to preserve their wealth and achieve substantial long-term gains, ensuring they remain at the helm of market trends.
Bas is facilitating portfolio diversification for several investors, HNWIs and UHNWIs in the country and abroad. Those who have worked with him since his company’s inception four years ago have witnessed a minimum average ROI of 86% and more than 48 consecutive months of positive returns to more than double their initial investment.
