Abu Dhabi has become a global hub for billionaires in recent years, drawing a swarm of foreign companies and wealthy individuals eager to take advantage of the emirate’s alluring tax laws. Abu Dhabi’s dedication to preserving a tax-free environment is the main force behind this migration, which is an uncommon and very alluring aspect of the world’s business environment.
In contrast to many other jurisdictions struggling with intricate tax structures, Abu Dhabi’s zero taxation rates for individuals and corporations foster an unmatched environment for economic growth and prosperity.
Furthermore, Abu Dhabi has deliberately signed double-tax treaties with some nations to promote global cooperation and reduce the possibility of double taxation for companies doing business internationally. These agreements raise the emirate’s appeal as a center for foreign investment while also giving companies a framework to handle cross-border taxation issues.
Businesses are moving to Abu Dhabi, signaling a paradigm shift in the global economy as companies and entrepreneurs look for stability, financial benefits, and advantageous locations in a world where money is becoming more and more important.
Abu Dhabi is globally positioned as a leader in the competition for worldwide economic prominence thanks to its progressive policies, advantageous location, and first-rate infrastructure, drawing in billionaires and companies from all over the world to settle in this vibrant metropolis.
Abu Dhabi’s rise to prominence as a global economic powerhouse is supported by its advanced infrastructure and its dedication to promoting international trade is demonstrated by the Abu Dhabi Global Market (ADGM). This area is free of money and acts as the center of economic activity, creating an atmosphere that is favorable for company growth.
According to recent updates, the ADGM has established itself as a major participant in the international financial scene, drawing thousands of special purpose vehicles (SPVs), which are essential instruments for asset isolation and protection.
Modern facilities at the ADGM provide businesses looking to protect their assets under a friendly regulatory environment with an advanced and secure platform. The concentration of SPVs within the ADGM highlights Abu Dhabi’s attractiveness as a jurisdiction that places a high value on protection and stability of finances.
The ADGM’s capabilities have been further enhanced by recent developments, resulting in an ecosystem that not only promotes innovation and collaboration across diverse sectors but also facilitates international trade and investment.
The ongoing development of the ADGM reflects Abu Dhabi’s strategic vision to create a world-class business environment, enhancing the emirate’s standing as a major international business hub.
Abu Dhabi is at the forefront of the constantly changing global economic landscape due to its dedication to innovation and excellence, as businesses increasingly recognize the value of a strong and modern infrastructure.
It is known for having a low crime rate, which adds to its reputation for security and high standard of living, making it one of the safest cities in the world. The emirate’s dedication to public safety benefits both locals and tourists, as evidenced by the calm and secure streets that arise from it.
This dedication, along with strong law enforcement tactics and community involvement, fosters an atmosphere in which people can live safe and tranquil lives. Because of this, Abu Dhabi’s low rates of street crime highlight its reputation as a top choice for travelers looking for security and an excellent standard of living.
Abu Dhabi’s climate, characterized by abundant sunshine, offers 10 hours of sunshine daily, making it a welcoming environment for both locals and tourists.
The emirate’s commitment to sustainability is reflected in programs promoting eco-friendly behavior and solar energy harvesting. This aligns with global environmental concerns, making Abu Dhabi a progressive travel destination that utilizes its natural resources for a sustainable living environment.
Abu Dhabi is unique in the region for having a wide range of housing options at reasonable prices. From luxurious villas to affordable apartments, the city offers something for every taste, and its rental prices are significantly less than those of other big cities. Because of its affordability, the city is more appealing as a friendly and convenient place to live.
Abu Dhabi has a thriving cultural scene in addition to housing options, and it is home to well-known locations like Yas Island, the Sheikh Zayed Grand Mosque, and the Louvre Abu Dhabi. In addition to providing year-round events and festivals that bolster the city’s cultural landscape, these attractions also give the community a boost in vitality and international appeal.
Furthermore, Abu Dhabi has established a pro-crypto regulatory climate by positioning itself as a center for blockchain and cryptocurrency initiatives. This open approach has been successful in drawing in a flurry of investors and businesspeople looking for chances in the rapidly expanding blockchain and digital currency sectors.
Abu Dhabi’s progressive policies position it as a strategic global player in the changing financial technology landscape, as the world comes to recognize the potential of these technologies.
RECENT UPDATES ON ABU DHABI
The reasons behind the relocation of businesses to Abu Dhabi by billionaires worldwide
The richest man in Egypt is among the many billionaires worldwide who are relocating to Abu Dhabi and establishing special-purpose vehicles there. But why are they traveling to the Emirate?
Experts point out that the tax treaty and safeguards against foreign meddling make it the wealthy’s preferred option.
Cryptocurrency’s richest Zhao Changpeng, hedge fund billionaire Ray Dalio, and Russian steel magnate Vladimir Lisin are among the high-net-worth individuals (HNWIs) who have relocated their assets to Abu Dhabi.
Indeed, according to data gathered by wealth advisory firm M/HQ, thousands of wealthy people are deciding to park their financial assets here, making the skyscraper-studded emirate the new number-one destination for billionaires worldwide.
However, why is Abu Dhabi the go-to haven for billionaires? Why is Abu Dhabi favored over established safe havens like the British Virgin Islands, Switzerland, and the Cayman Islands?
According to recent data, Billionaires worldwide have arrived in Abu Dhabi, and more billionaires from around the globe are establishing special purpose vehicles (SPVs) in Abu Dhabi this year. According to M/HQ, a leading wealth advisory firm that specializes in SPV setup, there are currently over 5,000 of them in the Abu Dhabi Global Market as opposed to just 46 in 2016.
For the uninitiated, SPVs are holding companies, subsidiaries, or business entities established by a parent company. To separate financial risk, they are set up with their own balance sheet.
This new development has also been noticed by other financial observers, many of whom have noted that Abu Dhabi is gradually turning into a haven for billionaires. Quoted as saying, “We’re seeing more high-net-worth individuals moving from British Virgin Islands, Caymans, Mauritius and Singapore to here” is Bhaskar Dasgupta, a former corporate adviser for the Abu Dhabi free zone.
The United Arab Emirates (UAE), Australia, Singapore, the United States, and Switzerland are the top five countries in the world for net inflows of high-net-worth individuals (HNWIs) in 2023, according to a different study. According to a recent report, about 4,500 “Richie Rich” people have relocated to the UAE. In the past, the UAE had yearly net inflows of about 1,000 HNWIs before the COVID-19 pandemic.
The richest man in Egypt, Nassef Sawiris, whose net worth is estimated to be around $7.6 billion, reportedly relocated his family office to Abu Dhabi as recently as December 5. Investing in both the English soccer club Aston Villa and the German sporting goods manufacturer Adidas, Sawiris is one of the wealthiest people on the planet.
The billionaire founder of Bridgewater Associates, the biggest hedge fund in the world, Ray Dalio, also opened an Abu Dhabi branch of his family office before Sawiris. “Abu Dhabi is also becoming a hub for many exciting developments in the region, including across the UAE and in Saudi Arabia,” stated Dalio at the time. I’m excited to establish the Dalio Family Office in Abu Dhabi for these reasons.
Vladimir Lisin of Russia has also relocated his assets here in a similar manner. The roughly $23 billion businessman relocated his ownership of Novolipetsk Steel PJSC and Freight One JSC from Cyprus to Abu Dhabi special purpose vehicles in June.
The reasons:
But why is Abu Dhabi so well-liked by HNWIs? The emirate is quickly becoming a popular destination for the world’s wealthiest people for a variety of reasons.
The tax rate in this country may be the main factor attracting billionaires worldwide to relocate there. According to experts, the UAE has double tax treaties with other nations, which can reduce the tax burden on the wealthy SPV owner’s holdings within the SPV.
Additionally, the emirate has safeguards in place to keep its assets safe from outside influence. Because of the conflict in Ukraine, the UAE has also refrained from sanctioning nations like Russia, which attracts oligarchs and extremely wealthy nationals.
Billionaires also find Abu Dhabi appealing because other so-called “safe havens” have recently come under increased scrutiny. For example, the British Virgin Islands and the Cayman Islands are seeing a decline in the number of new corporate registrations due to increased questions regarding their tax systems.
Reports credit powerful private investment firms and sovereign wealth funds, which manage assets valued at over US$1 trillion, for the increase in high net worth individuals (HNWIs) in Abu Dhabi.
It seems to be enjoying itself at the moment, but it will be interesting to see what happens in the future. A financial peak!
