Millionaires are on the Move Again: The UAE Is the Place to Be, while Russia Sees the Highest Net Outflows
The 2022 Q2 Henley Global Citizens Report, which tracks private wealth and investment migration trends worldwide, shows that a tsunami of private capital has left Russia and the Ukraine, the UK has lost its wealth hub crown, and the USA is fading fast as a magnet for the world’s wealthy, with the UAE expected to overtake it by attracting the largest net inflows of millionaires globally in 2022.
The Q2 report published by Henley & Partners features the latest projected 2022 net inflows and outflows of US dollar millionaires (namely, the difference between the number of high-net-worth individuals who relocate to and the number who emigrate from a country) forecast by New World Wealth, an independent wealth research company that has systematically tracked international private wealth migration trends over the past decade. The high-net-worth-individual migration figures focus only on people with wealth of USD 1 million or more and who have truly moved — namely, those who stay in their new country more than half of the year.
The data shows that Russia has suffered the biggest emigration of millionaires over the past six months, with forecast net outflows of 15,000 by the end of 2022–15% of its high-net-worth-individual population and 9,500 more than in 2019, pre-pandemic. Russia’s invasion is in turn driving a steep spike in outgoing high-net-worth individuals from Ukraine, which is predicted to suffer its highest net loss in the country’s history — 2,800 millionaires (42% of its high-net-worth-individual population) and a net loss of 2,400 more than in 2019. No country-specific figures are available for 2020 and 2021 owing to Covid-related lockdowns and travel restrictions.
Top 10 countries gaining and losing millionaires in 2022
Forecast figures in the Henley Global Citizens Report show the top 10 countries in terms of net inflows of high-net-worth individuals in 2022 will be the UAE, Australia, Singapore, Israel, Switzerland, the USA, Portugal, Greece, Canada, and New Zealand. Large numbers of millionaires are also expected to move to ‘the three Ms’: Malta, Mauritius, and Monaco. On the flip side, the 10 countries where the highest net outflows of high-net-worth individuals are predicted are Russia, China, India, Hong Kong (SAR China), Ukraine, Brazil, the UK, Mexico, Saudi Arabia, and Indonesia.
According to Dr. Juerg Steffen, CEO of Henley & Partners, says high-net-worth-individual migration was a rising trend over the past decade until, understandably, it dipped in 2020 and 2021 due to the Covid-19 pandemic. Steffen says the 2022 forecast reflects the extremely volatile environment worldwide. The data in the report shows that by the end of the year, 88,000 millionaires are expected to have relocated to new countries, 22,000 fewer than in 2019 when 110,000 moved. Steffen highlights that next year, the largest millionaire migration flows on record are predicted — 125,000 — as affluent investors and their families earnestly prepare for the new post-Covid world, with an as yet-to-be revealed rearrangement of the global order, and the ever-present threat of climate change as a constant backdrop.
Andrew Amoils, Head of Research at New World Wealth says high-net-worth-individual migration figures are an excellent barometer for the health of an economy. Amoils points out that affluent individuals are extremely mobile, and their movements can provide an early warning signal into future country trends. He says that countries that draw wealthy individuals and families to migrate to their shores tend to be robust, with low crime rates, competitive tax rates, and attractive business opportunities.
Read the full press release here.