In recent years, Abu Dhabi has cemented its reputation as a haven for the global elite. Now, the emirate is set to attract an influx of Britain’s high net worth individuals (HNWIs) who are looking to safeguard their assets amidst shifting tax policies in the UK.
The Abu Dhabi Global Market (ADGM), the emirate’s prominent financial centre, has reported a significant surge in inquiries from the UK. This uptick comes as the ruling Conservative Party in Britain scales back preferential tax treatments for non-domiciled residents. With the Labour Party poised to potentially intensify these tax reforms if they win the upcoming elections on July 4, the interest in relocating to Abu Dhabi has only grown.
ADGM has been proactive, developing a suite of incentives to entice finance professionals. These include comprehensive lifestyle support and visa arrangements, as reported by Bloomberg News. In recent weeks, ADGM representatives have conducted meetings in London to present these benefits to prospective movers, though specifics remain confidential.
“Abu Dhabi continues to attract high net worth individuals from around the globe,” said a spokesperson for ADGM. “ADGM has developed a robust regulatory framework and ecosystem with progressive regulations based on the direct application of English Common Law, which further enhances the appeal of the UAE capital.”
The attraction is not just for non-doms but extends to a broader segment of Britain’s affluent population. The recent tax policy changes in the UK, highlighted by Chancellor Jeremy Hunt’s overhaul of preferential treatment for non-domiciled residents, have spurred this interest. Additionally, Labour leader Keir Starmer’s commitment to closing further tax loopholes has amplified the urgency for many to consider relocation.
Abu Dhabi’s appeal to billionaires is well-documented. The city’s stringent asset protection laws, its sovereign wealth funds managing over $1.5 trillion, and the UAE’s extensive double tax treaty network have made it an attractive destination. High-profile figures such as cryptocurrency mogul Changpeng “CZ” Zhao, India’s Adani family, hedge fund billionaire Ray Dalio, and Russian steel magnate Vladimir Lisin have all established special purpose vehicles in the emirate, according to Bloomberg News.
Moreover, Abu Dhabi’s offering of a tax-free income, coupled with its sunny climate and strategic time zone that facilitates trading across Asian, European, and US markets, continues to draw individuals and businesses from financial hubs like London, Hong Kong, and Singapore.
The emirate’s allure is further strengthened by its sister city, Dubai, which similarly offers a compelling blend of business-friendly policies and high-quality living standards.
As Abu Dhabi continues its outreach, it positions itself as a prime location for Britain’s wealthy to relocate, providing a stable and attractive environment amidst growing tax pressures at home. This move is likely to have significant implications for the global distribution of wealth and the future of international financial centres.
