The Great UK Exodus: Why High-Net-Worth Individuals are Ditching London for Dubai and Abu Dhabi
The UK is witnessing a noticeable shift in mindset of people with regards to settlement of wealth. Rise in taxation and fast change in fiscal rules is making London less attractive for high net worth individuals. Towards to East, Dubai and Abu Dhabi are positioning themselves as secure and forward looking wealth hubs. These cities offer a mix of business freedom, lifestyle and investment friendly environments.
This trend is not just about shifting of money or wealth. Rather, it reflects careful decisions by families who want stability and growth opportunities without added burdens from taxations. Now, many wealthy parties and investors see company formation abu dhabi as a sensible way to build a long term base for their finances and businesses, rather than relying only on traditional centers like London or New York.
The Scale and Statistics of the UK Wealth Exodus in 2025
The numbers tell a sharp story. The UK is facing its largest recorded outflow of wealthy residents. In contrast, the UAE is welcoming more new arrivals than ever before. This movement highlights a major financial shift shaping both countries’ futures.
Record Millionaire Outflows
The UK is projected to lose 16,500 millionaires in 2025, a record-breaking figure compared to 10,800 the previous year. This massive shift represents billions leaving the country and searching for new opportunities abroad, with Dubai becoming a preferred base for freezone company formation dubai.
Impact on UK Billionaire Count
The billionaire pool is also shrinking. From 165 in 2024, the number is expected to drop to 156 by the end of 2025. This change reflects how serious wealth owners are moving away. For many, llc company formation abu dhabi signals a structured, secure investment environment.
Wealth Migration Data Table
Numbers give the clearest picture of the movement. UK wealth is draining while the UAE attracts large inflows. Dubai alone now controls nearly a quarter of regional private wealth and the number of centi-millionaires moving into the city shows how strong this attraction has become.
| Metric | Statistic / Detail |
|---|---|
|
UK Millionaires leaving in 2024 |
10,800 |
|
UK Millionaires projected to leave in 2025 |
16,500 (record high) |
|
Total estimated wealth leaving the UK |
£66+ billion |
|
UK Billionaire count drop |
165 → 156 |
|
Notable UK billionaires migrating |
John Fredriksen, Richard Gnodde, Lakshmi Mittal, Ian & Richard Livingstone, Nassef Sawiris |
|
UAE Millionaire population growth (last decade) |
+98% |
|
Estimated new millionaire migrants to UAE in 2025 |
~9,800 |
|
Dubai’s share of Middle East private wealth |
25% |
|
Centi-millionaires relocating to Dubai |
200+ |
The Push Factors: London’s Shifting Fiscal and Regulatory Landscape
The UK’s fiscal system is undergoing major changes. Rules once favorable to global wealth are now being tightened. Higher taxes and stricter regulations are creating an environment where high-net-worth individuals no longer feel secure. This pressure is driving relocation decisions faster than before.
End of Non-Dom Regime
From April 2025, the UK abolished the long-standing non-dom tax status. Residents are now taxed on worldwide income and gains as they arise. This has erased a huge advantage for foreign investors. Many have begun exploring alternatives such as mainland company formation abu dhabi.
Inheritance and Capital Gains Tax Burden
Inheritance Tax rules now apply to worldwide assets after ten of the past twenty years of UK residency. Coupled with stricter Capital Gains rules, this raises significant burdens. As a result, low-tax jurisdictions including shams free zone company formation dubai appear far more attractive for preserving intergenerational wealth.
Investor Sentiment and Surveys
Investor surveys indicate increasing unease about London’s tightening fiscal stance. More than half of wealthy respondents signal they would relocate if wealth taxes continue. These changes highlight how sensitive wealth migration is to tax structures, shaping the exodus toward more competitive markets abroad.
| Tax Type | Previous Rule | New Rule (from 2025) | Impact on HNWIs |
|---|---|---|---|
|
Non-dom Status |
Taxed only on UK income; foreign income taxed if remitted |
Worldwide income taxed immediately |
Removes key benefit for foreign investors |
|
Inheritance Tax (IHT) |
Based on domicile |
Applies after 10 of past 20 years residency |
Captures worldwide assets, heavier burden |
|
Capital Gains Tax (CGT) |
Gains taxed only when remitted |
Worldwide gains taxed directly |
Higher liabilities on global portfolios |
The Pull Factors: Why Dubai is the World’s Premier Wealth Magnet
While London tightens its tax net, Dubai and Abu Dhabi are making life easier for investors. The UAE has created a mix of low taxes, investor security and quality lifestyle. It is this balance that is pulling high-net-worth individuals eastward.
Tax Advantages in UAE
Dubai offers zero personal income, capital gains and inheritance taxes. Corporate tax is capped at 9% and personal investment income remains exempt. These benefits make dmcc freezone company formation dubai highly attractive, with investors guided through simple setups by specialists. Learn more here.
Business-Friendly Legal Systems
The UAE’s strong frameworks, including DIFC and ADGM, provide independent English common law jurisdictions. These systems give transparency and investor confidence. This clarity has made freezone company formation dubai an appealing route, as entrepreneurs and wealthy families secure ownership without the traditional barriers found in London or other financial centers.
Residency and Golden Visa Benefits
The Golden Visa offers five- and ten-year renewable residency options through real estate or investment. Families benefit from sponsorship opportunities and stability. For many, the chance to combine secure living with tax efficiency strengthens their case for difc freezone company formation dubai and other business structures across the UAE.
Lifestyle and Infrastructure Edge
Dubai is unique in terms of world class infrastructure, high safety levels and a cosmopolitan lifestyle. Education, healthcare and transport systems are top-tiered. Coupled with this, living costs in certain areas remain quite affordable if we compare them to London. These quality of life factors are as important as the financial advantages themselves for high net worth individuals.
London vs Dubai Comparative Advantage
This one’s big. DMCC is known worldwide. Banks trust it. Investors respect it. Clients recognize it. A DMCC free zone business setup can instantly boost your credibility. Other zones may not have that same weight, especially outside the UAE.
| Category | London (UK) | Dubai & Abu Dhabi (UAE) | Key Notes |
|---|---|---|---|
|
Personal Income Tax |
20%–45% + National Insurance |
0% |
Major savings for HNWIs |
|
Corporate Tax |
25% |
9% (> AED 375,000) |
Lower corporate tax with exemptions |
|
3-Bed Apartment Rent (City Centre) |
£3,500–£5,000
|
AED 11,000–15,000 (£2,300–3,100) |
London rents up to 50% higher |
|
Groceries (Family of 4)
|
£700–£900 |
AED 2,500–3,500 (£520–730) |
Cheaper overall in UAE |
|
Transport (Monthly Pass) |
£200 |
AED 300 (£63) |
More affordable in UAE |
|
Healthcare |
Free NHS, long waits |
Private with insurance |
Faster access, better convenience
|
Dubai’s Real Estate and Investment Opportunities
Dubai’s property sector is a magnet for global investors. High rental yields, tax-free ownership and modern luxury projects have reshaped the market. For many high-net-worth individuals, real estate is not just lifestyle-driven. It has become a central part of wealth strategy in the UAE.
Luxury Property Market Growth
From waterfront towers to branded residences, Dubai’s luxury real estate has expanded rapidly. Demand continues to climb as overseas buyers view property here as both lifestyle and safe investment. Many structure holdings through llc company formation abu dhabi to integrate real estate into wider asset management plans.
Innovative Investment Platforms
Dubai is pioneering with tokenized real estate and fractional ownership models. These allow global investors to access premium property markets with flexibility. Such innovation adds depth to the investment landscape, making it easier to pair property ownership with mainland company formation abu dhabi for long-term financial planning.
Real Estate for Wealth Preservation
For global wealth owners, real estate in Dubai acts as a hedge against uncertainty. Stable appreciation, strong rental yields and absence of annual property taxes create confidence. Investors see property not just as a luxury purchase but as a practical shield for preserving intergenerational wealth.
Lifestyle, Security and Quality of Life in Dubai
Dubai is not only about finance. It is also about how people live. Healthcare, safety, schools and social life are central factors drawing wealthy families. Together with Abu Dhabi, the UAE offers a lifestyle that balances opportunity, comfort and long-term stability.
Healthcare and Education Standards
Dubai’s healthcare system is ranked as one of the best in the region. Mandatory insurance ensures access to world class hospitals and specialists. International schools with British, American and IB curriculum make shifting smooth. These strengths combine to offer families security that rivals major Western capitals.
Expat-Friendly Community and Safety
Dubai is one of the safest cities globally, with exceptionally low crime. Its multicultural community allows expats to feel at home quickly. Families who relocate often integrate work with personal life. Some explore shams free zone company formation dubai to align businesses with their lifestyle choices.
Global Gateway Advantage
Dubai’s airports connect to nearly every major city within hours. For high-net-worth families, this global accessibility matters. Abu Dhabi offers a quieter option with cultural richness. Many combine relocation benefits with company formation abu dhabi, creating a dual base that blends lifestyle with financial opportunity.
A Practical Guide: The Strategic UK-to-Dubai Relocation Roadmap
Relocating wealth is more than a flight booking. It requires careful planning across finances, residency and business structures. The UAE has simplified this process, offering wealthy families clear steps to secure assets, long-term visas and company setups. Strategy makes the difference in this journey.
Financial Migration Planning
Cross-border wealth planning is essential before moving. Investors often restructure holdings to align with UAE tax laws. Using llc company formation abu dhabi, families integrate property and business assets under one entity. Advisory services ensure that taxes, reporting and compliance are handled seamlessly across multiple jurisdictions.
Golden Visa Process
The Golden Visa allows residency through real estate or investment starting at AED 2 million. The process is straightforward with proper documentation. Families gain stability, sponsorship benefits and security. Many investors also explore business setups through free zone company formation to complement residency planning.
Choosing Mainland vs Free Zone Setup
Both mainland and free zone structures offer clear advantages. mainland company formation abu dhabi ensures full UAE market access, while shams free zone company formation dubai offers zero tax on profits. Investors often consult on DIFC setups or ADGM holding guides when finalizing choices.
| Criteria | Mainland | Free Zone |
|---|---|---|
|
Foreign Ownership |
100% in most sectors |
100% |
|
Market Access |
Full UAE + international |
Free Zone + international (via agent) |
|
Corporate Tax |
9% (over AED 375,000) |
0% (in specific zones) |
|
Legal Framework |
UAE federal + local law |
Independent common law (DIFC/ADGM) |
|
Profit Repatriation |
No restrictions |
No restrictions |
Investment Diversification and Financial Planning in Dubai
Relocating to Dubai is not just about saving taxes. It is also about creating a balanced portfolio that works globally. Investors combine property, financial markets and business structures. This mix provides security while preparing for future growth, retirement and wealth transfer across generations.
Diversified Portfolio in UAE Markets
Dubai offers access to global exchanges, private equity and real estate investment. High-net-worth individuals often combine traditional investments with newer platforms. For advanced structures, difc freezone company formation dubai provides a trusted gateway. Its legal framework supports global investors looking for stability and cross-border financial management.
Retirement and Legacy Planning
Long-term financial planning is central to wealth migration. Families use real estate, trusts and corporate vehicles to safeguard future generations. Many find Abu Dhabi appealing for legacy structures. Through company formation abu dhabi, assets can be held securely, making retirement strategies smoother and inheritance frameworks clearer for heirs.
Cross-Border Tax Compliance
Managing global obligations remains complex. Advisors in Dubai assist with treaties, reporting and multi-jurisdiction compliance. One preferred option is the creation of holding entities. Many investors use specialized structures through ADGM Holding Company Guide to keep assets organized, tax-efficient and aligned with international requirements.
Challenges and Considerations for UK Expats in Dubai
Relocating to Dubai is appealing but not without hurdles. Families need to adjust to cultural norms, manage costs carefully and stay compliant with local rules. Understanding these realities ensures a smoother transition and reduces the risk of unexpected surprises after moving.
Cultural and Lifestyle Adjustments
The UAE is diverse but rooted in its traditions. Expats often take time to adapt to cultural expectations and daily practices. Social norms, business etiquette and community living can feel different from London. Awareness and openness help ease these lifestyle adjustments for new arrivals.
Cost and Expectations
Dubai offers tax benefits, yet living and business setup costs can be high. Luxury housing, schooling and healthcare often stretch budgets. Setting realistic expectations helps families manage better. Some investors weigh options like freezone company formation dubai to optimize operating costs and entry expenses.
Legal and Compliance Complexities
Understanding the UAE’s legal framework is essential. Business structures, contracts and licensing require proper attention. Many expats avoid issues by working with advisors. Structured setups such as llc company formation abu dhabi ensure compliance while reducing risks tied to cross-border ownership and regulatory oversight.
What the Future Holds: Wealth Trends for 2026 and Beyond
Wealth migration is not slowing down. Experts predict the UK will continue losing high-net-worth individuals. Meanwhile, the UAE is expected to attract even greater inflows. Dubai and Abu Dhabi are likely to remain central pillars in the global movement of capital and talent.
Continued UK Wealth Outflows
The UK faces ongoing fiscal pressure and uncertainty. Higher taxes and political shifts could push more millionaires to leave. Reports suggest 2026 may bring larger outflows. Many families already explore options such as company formation abu dhabi to secure stability and protect assets abroad.
Dubai’s Role as Global Wealth Center
Dubai is steadily building its global position. The rise of dmcc freezone company formation dubai reflects its competitive edge. Free zones and legal frameworks continue to attract global wealth. Together with Abu Dhabi, these cities offer both opportunity and long-term security for investors.
Policy Reactions from UK
The UK government is expected to consider new measures to stem wealth flight. Adjustments may include more incentives for investment or reduced fiscal burdens. Whether these changes succeed will depend on timing and credibility. For now, the flow toward the UAE continues gathering pace.
The Role of ADEPTS in Facilitating the Move
Relocating wealth is not a simple step. Families require expert support to manage taxes, legal structures and global compliance. ADEPTS provides tailored guidance for high-net-worth individuals, making every stage of relocation smooth, secure and aligned with long-term protection of assets and future growth.
Comprehensive Advisory Services
ADEPTS delivers end-to-end support for relocation. From planning to compliance, services are customized to fit client needs. Investors often consider ADGM Freezone Formation. ADEPTS ensures such choices connect effectively with global portfolios and provide the stability wealthy families expect when moving abroad.
Business Setup and Tax Guidance
Business formation in the UAE requires knowledge of rules and regulations. ADEPTS guides investors through both mainland and free zone options. Pathways like difc freezone company formation dubai are explained with clarity, allowing families to make informed decisions that enhance operations and protect finances.
Estate and Legacy Planning
Relocation is also about securing the future. ADEPTS supports clients in structuring estates, inheritance and succession planning. Families often use trusts and corporate vehicles, including adgm freezone formation of business, to safeguard assets and ensure that wealth passes smoothly to the next generation.
Conclusion
The UK’s shifting tax landscape has pushed many wealthy families to explore safer, more flexible options. Dubai and Abu Dhabi now stand out as global wealth magnets. With expert guidance, investors secure assets, plan futures and achieve growth through strategies such as company formation abu dhabi.
FAQs:
Dubai has zero personal income, capital gains and inheritance taxes, while the UK imposes higher taxation across all categories.
Residency can be obtained in few weeks through golden visa program once all documents and investments are in place.
Yes, certain UK pension schemes can be transferred but it requires professional advice to ensure compliance and tax efficiency.
Yes, certain UK pension schemes can be transferred but it requires professional advice to ensure compliance and tax efficiency.
Yes, certain UK pension schemes can be transferred but it requires professional advice to ensure compliance and tax efficiency.
DIFC, ADGM and DMCC are popular with many investors opting for freezone company formation dubai to access global markets.
British expatriates can register wills in DIFC or ADGM ensuring their estate is distributed according to personal wishes instead of Sharia law.
Yes, a treaty exists to prevent double taxation thus helping residents manage income and assets across both jurisdictions more efficiently.
Expect safe environment, multicultural community, warmer climate and faster paced business culture compared to London.
Dubai offers modern private healthcare with fast access while London’s healthcare is also comparable but often involves long waiting times.
International schools with British, American and IB curriculam are widely available in Dubai which offer high-quality education for expatriate children.
Yes, ADEPTS does indeed provide tailored services including company formation abu dhabi, tax structuring and legacy planning for high-net-worth individuals who plan to relocate.
