Around 1,28,000 millionaires worldwide are expected to relocate in 2024.
Approximately 4,300 millionaires are projected to leave India this year, with a significant number choosing the UAE as their destination, according to a recent report by international investment migration advisory firm Henley & Partners.
Last year, the same report noted that 5,100 Indian millionaires relocated abroad.
India, the fastest-growing economy in the world, is expected to rank third globally in terms of millionaire migrations, following China and the UK. While India has now overtaken China as the world's most populous nation, its net millionaire exodus is less than 30% percent of China's.
"While India loses thousands of millionaires each year, with many migrating to the UAE, concerns over the outflows may well be mitigated as with wealth growth of 85% over the past decade, the country continues to produce far more new high-net-worth individuals than it loses to emigration," the report states.
The report highlights that many of the departing millionaires retain business interests and second homes in India, which suggests ongoing economic ties.
UAE's Investment Advisory Sector
Indian private banks and wealth management platforms are actively expanding into the UAE to offer seamless investment advisory services to their clients. Recent examples include Nuvama Private and LGT Wealth Management, both known for supporting Indian clients with global diversification and expansion needs.
Similarly, other banks are also bolstering their presence in the UAE, ensuring competitive wealth management services for Indian families.
"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, ensuring that they don't lose out to their competitors," the Henley report said.
Importance of Millionaire Migration
Around 1,28,000 millionaires worldwide are expected to relocate in 2024, with the UAE and the USA topping the list of preferred destinations.
Migrating millionaires contribute significantly to foreign exchange reserves by moving substantial assets with them.
Their investments also stimulate local stock markets through equity placements.
Moreover, businesses established by millionaires often create numerous high-paying jobs, benefiting the middle class. Examples like Microsoft, Apple, and Tesla have demonstrated this effect in the USA.
A millionaire is defined as an individual with liquid investable assets totaling $1 million or more.
Reasons for Migration
High-net-worth families opt to relocate for various reasons, including safety, financial considerations, tax benefits, retirement prospects, business opportunities, favorable lifestyles, educational opportunities for children, healthcare systems, and overall quality of life.