Rich people in India are focusing more and more on the UAE as a their new place to reside. The ultra-rich in the Indian subcontinent are now more likely to go to Dubai, Abu Dhabi, and other emirates. However, the important parameter to look at is, what precisely is luring the ultra-wealthy Indians to the UAE?
The UAE's advantageous tax system is one important component. The UAE provides an almost tax-free environment, in contrast to India's income and capital gains taxes. For affluent people and families trying to maximize their wealth management tactics, this translates into major financial advantages.
The UAE offers an environment that is conducive to business beyond merely taxes. Free trade zones, an emphasis on innovation, and streamlined business establishment procedures make it an ideal place for startups and well-established companies.They are able to grow their businesses, investigate new markets, and draw in international investment because of this climate.
Even the ultra-wealthy now favor the United Arab Emirates above other countries, according to a survey by the international investment migration consultancy firm Henley & Partners. According to the survey, almost 4,300 millionaires are anticipated to depart from India in 2024, with the bulk relocating to Dubai, United Arab Emirates.
"India keeps losing a lot of millionaires, particularly to the United Arab Emirates. However, given that India continues to create significantly more new HNWIs than it loses to emigration, we do not believe that these outflows are very alarming. Additionally, the majority of millionaires who depart from India often keep their businesses and second houses there, which is encouraging," the survey stated.
Property Investments are Trending Upward
Rich Indians are traveling to the UAE more often than to other well-liked locations like the US, Australia, and Singapore. Indian purchasers brought in 16 billion dirhams (Rs 35,500 crore) for real estate in Dubai during the course of the previous year, nearly tripling the amount from 2021.
Forty percent of Dubai's homebuyers were Indian. The majority of them were from Punjab, Hyderabad, Ahmedabad, Surat, and Delhi-NCR. Twenty percent of Indians were spread out over other regions of the world, with the remaining forty percent already resident in the United Arab Emirates. A rising number of wealthy Indians are setting up family offices in London, Singapore, and Dubai.
The younger generation is becoming more and more interested in setting up family offices overseas, particularly those who have studied abroad or have just returned to work for family enterprises.
A growing number of startup founders are now relocating their businesses and setting up family offices abroad. This tendency is driven by several reasons. First and foremost, they wish to shield a portion of their fortune from future tax or regulatory problems in India.
Second, establishing a family office overseas facilitates business development in other countries and provides simpler access to international markets. Thirdly, it makes it possible to diversify economic endeavors and investments. A family office is usually a privately held company that looks after money and investments for a family with about $100 million (about Rs. 820 crore) worth of investable assets.
Golden Visa
In addition to the extremely rich, a growing number of professionals are increasingly traveling to Dubai. Rich Indians are finding the UAE even more alluring because of the country's Golden Visa program, which will be extended in 2022 to accommodate more laborers, skilled professionals, scientists, and researchers. Through this program, international talent can live, work, or study in the UAE with distinct perks. It also gives a long-term residency visa.
A taste of the good life is also available in the UAE. Particularly in Dubai, luxury is a given. The UAE appeals to individuals who like a luxurious lifestyle, offering everything from world-class shopping and Michelin-starred restaurants to luxurious penthouses and expansive villas. But the appeal extends beyond worldly comforts. The UAE is well known for its extraordinary security and safety. Rich people and families looking for a safe and secure place to raise their kids find this to be a big lure.
A Benefit to the Startup Community
Over thirty percent of Dubai's startup sector is Indian, and the city hopes to draw in even more Indian digital expertise. In order to do this, Dubai provides 100,000 Golden Visas, which allow business owners and investors in technology to stay in the nation for up to ten years—a far longer period of time than normal visas. Dubai has also set up a national small-business initiative to assist new businesses in obtaining capital, forming alliances with well-established businesses, and expanding their product lines globally.
For India's super-rich, a persuasive image is painted by the combination of tax advantages, a business-friendly atmosphere, luxurious living, security, a prime location, and easily accessible residence possibilities. The UAE is a new sanctuary that offers a mix of prosperous chances, an opulent lifestyle, and a secure future. It is more than simply a place to go on vacation.
