The most recent Global Wealth and Lifestyle Report 2024 has solidified Dubai’s status as the 12th most sought-after global luxury destination and the 6th most expensive city in the EMEA region. This achievement is the result of the city’s resilience in the face of inflation, rising living costs, and increased geopolitical tensions. Notwithstanding these challenges, Dubai has emerged as an attractive economic hub due to its strategic location and world-class infrastructure.
A key factor contributing to Dubai’s appeal is its unique geographical advantage at the crossroads of the East and the West, making it an ideal market for global expansion. The report also highlights the significant increase in spending on business and leisure travel in the Middle East, reflecting the region’s growing affluence and economic dynamism.
The real estate sector in Dubai has also experienced remarkable growth, contributing a substantial 8.9 percent to the economy. Property prices in the city have surged by 16 percent in U.S. dollar terms, making it the world’s most active housing market for properties valued at over $10 million. Despite this surge, residential prices in Dubai remain relatively affordable compared to other cities in the region, attracting both global and local investors.
Although Singapore and Hong Kong continue to dominate the top spots in the global wealth and lifestyle ranking, the EMEA region has seen a strong resurgence, with Dubai being the 6th most expensive city and 12th globally in the Lifestyle index. This underscores the city’s enduring allure and growing prominence as a global luxury destination.
The report also illuminates the spending patterns of high-net-worth individuals (HNWIs) in the Middle East, indicating a strong appetite for luxury goods and a significant demand for luxury residential properties. Furthermore, Dubai’s favourable tax environment, with no income tax, capital gains tax, or inheritance tax, has positioned the city as a wealth hub for entrepreneurs and affluent families, driving investment and portfolio expansion.
In terms of investment and asset management, Dubai has attracted prominent hedge funds, asset managers, fintech firms, and family offices, consolidating its status as a global financial powerhouse. The city’s non-oil economy has experienced significant growth, particularly in the tourism sector, contributing to its overall GDP. Dubai’s strategic positioning as a new capital for global finance and a bridge between east and west has further enhanced its appeal to the global elite.
As the trend of health as the new wealth gains momentum, the report indicates a greater focus on health spending among HNWIs globally, particularly in Asia-Pacific. Additionally, sustainability has risen in prominence as HNWIs in Asia-Pacific, the Middle East, and Latin America review their portfolios to understand the environmental, social, and governance (ESG) impact of their investments.
In summary, Dubai’s ascent as a premier luxury destination and global financial hub is a testament to its resilience, strategic advantages, and enduring appeal to the world’s elite. As the city continues to position itself at the intersection of luxury and innovation, it is poised to remain a prominent player in the global wealth and lifestyle landscape.