In a significant development for the UAE, a recent survey conducted by Arton Capital, following Germany’s Federal Election, has revealed that the UAE is among the top destinations for wealthy Germans considering relocation.
The Arton Capital Affluence and Elections Survey, which examined the factors influencing high-net-worth individuals (HNWIs) in Germany, found that 11% of millionaires are now more inclined to move to the UAE, making it the seventh most popular destination worldwide.
UAE: A growing appeal for wealthy Germans
While Canada, Australia, and the United States topped the list of preferred destinations, the UAE has emerged as a notable player, drawing the attention of 11% of the millionaires surveyed.
The country’s tax-friendly environment, modern infrastructure, and strategic location between East and West make it an attractive option for individuals looking to relocate for both business and personal reasons.
In particular, the UAE’s Golden Visa program, which offers long-term residency to investors, has positioned the country as a prime destination for those seeking stability and opportunity outside of Europe.
The survey highlights growing concerns among affluent Germans about the country’s economic outlook, political polarization, and rising taxes, driving an increasing number to seek alternatives in more stable and attractive locations like the UAE.
Impact of election
The survey underscores the impact of the Federal Election on wealthy Germans’ perceptions of their future in the country. 37% of those surveyed expressed that they are now more likely to leave Germany than they were before the election, a stark indication of the uncertainty felt within the HNWI community.
The political polarization that characterized the election results appears to be a key catalyst for this shift. Immigration concerns (47%) and the rise of the far right (42%) were cited as the top reasons prompting wealthy Germans to consider emigration. These issues are particularly pronounced among voters with right-leaning political views, who overwhelmingly identified immigration as a significant concern.
Additionally, tax increases for high-net-worth individuals were flagged by 30% of respondents, adding to the financial pressures driving emigration.
Global citizenship
The survey also sheds light on the increasing desire among affluent Germans for Golden Visas and Citizenship by Investment Programs (CIPs). 88% of respondents expressed interest in these programs, with the UAE included among their top choices. The growing appeal of these visa options aligns with the broader trend of wealthy individuals seeking “Plan B” solutions in light of the uncertain political and economic landscape in Europe.
Canada emerged as the leading choice for potential emigrants, with 29% of respondents considering it as their preferred destination. However, the UAE’s standing as a popular relocation choice speaks volumes about the country’s growing international appeal, especially for those seeking long-term residency without the complex tax burdens present in their home countries.
According to Armand Arton, CEO of Arton Capital, the growing trend of wealthy Germans looking to leave their homeland reflects a deeper sense of fatigue with the political situation in Germany. “Wealthy Germans are clearly feeling fatigued by the state of politics at home, and are looking elsewhere for a ‘plan B’. The global race to attract HNWIs is heating up,” said Arton.
With political and economic uncertainty on the rise in Europe, countries like the UAE are well-positioned to capitalize on this exodus of wealth. The UAE’s strategic positioning, favorable policies, and investor-friendly regulations are drawing the attention of wealthy individuals looking for stability and growth opportunities.
Future outlook
As the competition for high-net-worth individuals intensifies, the UAE is increasingly becoming a go-to destination for global elites. The growing popularity of the Golden Visa program and other incentives for wealthy investors signifies the country’s commitment to attracting and retaining international talent, including German millionaires seeking new opportunities.
In the face of uncertainty in Europe, the UAE’s allure continues to shine, offering an attractive alternative for wealthy individuals looking to secure their futures outside the political and economic turbulence of their home countries.
tanvir@dubainewsweek.com
