4,300 millionaires likely to move out of India in 2024, UAE top destination

Approximately 128,000 of the world's millionaires are projected to migrate to a new country in 2024, with the UAE and the USA topping the list of destinations.

About 4,300 Indian millionaires are expected to move out of India in 2024, investment migration consultancy Henley & Partners has said in a report. If these projections hold, India will have the third-highest net outflow of millionaires in 2024 after China (15,200) and the United Kingdom (9,500).  However, the total predicted outflow of Indian high-net-worth individuals this year is lower than the 5,100 who migrated out of the country last year.

About 1.28 lakh millionaires across the world are projected to migrate to a new country this year. The United Arab Emirates and the United States top the list of destinations.

Millionaires and high-net-worth individuals are persons with liquid investable wealth of at least $1 million (or Rs 8.3 crore).

"An unprecedented 128,000 millionaires are expected to relocate in 2024, eclipsing the previous record of 120,000 set in 2023. To put this in perspective, it's a 16% increase from the 110,000 who moved to a new country in the pre-pandemic days of 2019," said Dominic Volek, CA(SA), FIMC,  Group Head of Private Clients at Henley & Partners and a member of the Executive Committee.

UAE: Top wealth haven 

With its sights firmly set on becoming the world's top wealth haven, the UAE is pulling out all the stops to attract millionaires, from an attractive golden visa offering and luxurious living to a business-friendly environment in a strategic location. The results speak for themselves: the UAE is poised to welcome a record net inflow of 6,700 millionaires in 2024, cementing its status as a dynamic sovereign wealth magnet.

Notwithstanding the introduction of a 9% UAE corporate income tax in 2023, the UAE remains a tax efficient, competitive economy, continuing to support and encourage growth and attract inward investment.

"The stable political framework, the peaceful environment with advanced infrastructure, the ease of doing business, the diverse investment opportunities, the futuristic regulations and supporting infrastructure, the clear and dedicated commitment to ESG initiatives and the wide range of easily available residence options, are all reasons why the UAE is positioned as a prominent recipient of much foreign investment and why it’s the destination of choice for so many relocating high-net-worth individuals," said Sunita Singh-Dalal, Partner leading the Private Wealth & Family Offices at Hourani in the UAE.

Indian private banks and wealth management platforms are also consciously and strategically enhancing their presence in the UAE in a bid to provide their clients with seamless investment advisory services. Two such notable recent examples are Nuvama Private and LGT Wealth Management, both exemplary investment advisors who are equally proactive in supporting their Indian clients with their global diversification and expansion requirements. Similarly, Kotak Mahindra Bank and 360 ONE Wealth are joining the dots to provide Indian families with wealth management services on the ground in the UAE.

Other top destinations for migrating millionaires include the United States, Singapore, Canada, and Australia.

Is this worrying for India?

"India continues to lose large numbers of millionaires, especially to the UAE. However, in our view these outflows are not particularly concerning as India continues to produce far more new HNWIs than it loses to emigration. Furthermore, the bulk of the millionaires who leave India tend to retain business interests and second homes in the country, which is a positive sign," the report said. 

On the flip side, some nations are grappling with a worrying exodus of wealth. China is forecast to see a net outflow of 15,200 millionaires in 2024 as slowing growth, geopolitical tensions, and the lure of overseas opportunities prompt many to seek pastures new. The UK, meanwhile, is bracing itself for a worrying net loss of 9,500 millionaires, driven by a perfect storm of Brexit fallout, political uncertainty, and a controversial overhaul of the non-domicile tax regime. The message is clear: in this new era of unprecedented millionaire migration, complacency is a luxury no nation can afford.

Common reasons why millionaires move

High-net-worth families choose to relocate for a range of reasons, including:

• Safety and security
• Financial concerns
• Taxes and retirement
• Work and business opportunities
• Lifestyle factors, including climate, nature, and scenery
• Schooling and education opportunities for their children
• Healthcare system
• Standard of living