Report: Economic uncertainty and geopolitical tensions are driving HNWIs away from China

The United Arab Emirates (UAE) will attract, in 2024, the most millionaires, i.e. high-net-worth individuals (HNWI), while China and Great Britain will lose the largest number of such people, according to the latest Henley Private Wealth Migration report, taken by visualcapitalist.com.

The report mentions that the United Arab Emirates is, for the third consecutive year, the main magnet for attracting the world's wealthy.

According to the cited source, the top ten countries expected to have the largest inflows of HNWIs in 2024 are: UAE - with a net inflow of 6,700 millionaires, USA (3,800), Singapore (3,500), Canada (3,200) , Australia (2,500), Italy (2,200), Switzerland (1,500), Greece (1,200), Portugal (800) and Japan (400).

According to Henley & Partners, 20% of HNWIs are entrepreneurs, and as a result, countries that attract HNWIs from other parts of the world can have solid benefits, such as job creation and investment. HNWIs have liquid assets available for investment of at least one million dollars.

The UAE's strategic focus on economic diversification and government investment has positioned it as a global economic powerhouse, the quoted source notes, noting that the Emirates has made significant investments in tourism, real estate, logistics, financial services and technology. In addition, the adoption of international standards in the regulatory and market framework, together with attractive tax initiatives, has attracted young entrepreneurs from around the world.

According to the Warwick Legal Network, the United Arab Emirates receives over 30% of the flow of foreign direct investment in the MENA (Middle East and North Africa) region.

Andrew Amoils, head of research at New World Wealth, says the benefits of this migration of wealth and talent to destination countries are significant and varied, adding: "Migrating millionaires are a vital source of foreign exchange earnings as they tend to to bring their money with them when they move to a country. Also, about 20% of them are entrepreneurs and company founders, so they can start new businesses and therefore create local jobs in their new country."

• Millionaires are leaving China

Uncertainty about China's economic trajectory and geopolitical tensions have led millionaires to leave the Asian country, according to the cited report. China recorded the largest HNWI outflows in the world last year and is expected to see a record exodus of 15,200 such individuals in 2024.

Similarly, the UK is expected to lose 9,500 millionaires this year, on top of the 16,500 it has lost in the six years since Brexit. Last year, the UK lost 4,200 millionaires. This is an interesting reversal of trend and worth noting, given that, historically, Britain has attracted wealthy families from Europe, Africa, Asia and the Middle East.

After China and Great Britain, the countries expected to lose HNWIs this year are, according to the Henley report: India (-4,300), South Korea (-1,200), Russia (-1,000), Brazil (-800), South Africa (- 600), Taiwan (-400), Nigeria (-300), Vietnam (-300).

In this context, Dominic Volek, head of the Private Clients division at Henley & Partners, says that 2024 seems to be a decisive moment in the global migration of wealth, emphasizing: "We expect an unprecedented number of 128,000 millionaires to are moving around the world this year, eclipsing the previous record of 120,000 set in 2023. As the world faces a perfect storm of geopolitical tensions, economic uncertainty and social unrest, millionaires are leaving in record numbers from some areas. In many ways, this great migration is a key indicator, signaling a profound shift in the global landscape and the tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the countries it leaves behind or those it takes. make their new home".