The UAE has emerged among the top three countries where most African millionaires have relocated to in the past 10 years.
According to the Africa Wealth Report 2023 released by New World Wealth and Henley & Partners, approximately 18,500 high-net-worth individuals have left Africa between 2012 and 2022, with most of them relocating to the UK, the US, and the UAE.
The UAE, especially Dubai, has become a stronger competitor to attract millionaires from around the world in the post-pandemic period. The Henley Global Citizens Report released last year projected that 4,000 millionaires would migrate to the UAE in 2022 alone – the highest in the world, which is also more than bigger countries such as Australia, Singapore, Israel, Switzerland, USA, Canada, New Zealand, UK, India and others.
One of the main factors that encourage African millionaires to migrate to the UAE is the low and highly competitive tax rates that help set up new businesses in the country, said Africa Wealth Report 2023.
The UAE has one of the lowest tax rates in the world and no personal income tax. The emirates will introduce a corporate profit tax of nine per cent from June 1, 2023, which is also one of the lowest in the world.
This has attracted a number of African companies to set up bases in Dubai. According to Dubai Chamber, more than 1,600 new African member companies registered with the Chamber between October 2021 till June 2022, reaching 26,420, an increase of 6.5 per cent.
Also, Gitex Africa has been launched by the Dubai World Trade Centre to organise mega technology in the African continent which will further promote Dubai and UAE.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that dir...