Why the World’s Rich Have Moved to Dubai

A tech entrepreneur, who had just arrived from the West Coast, arrived in Dubai this summer. His family, along with their family office, and 30 luxury cars were there. Everything a billionaire will need to start a new life here in Dubai

“It’s safe for my kids. L.A. is not what it was before. Covid has seen crime rise,” said the mid-50-year-old entrepreneur who declined to be identified.

Rohal Kohyar (marketing director at Luxhabitat Sotheby’s International Realty) says it was difficult to find a house that could accommodate 30 cars. Finally, a villa was found on its own property. It also had a basement which could be used as a huge garage.

It was not easy to set up the family office. A team of 30 specialists is required to manage family offices of this size, which can manage private wealth in excess of $100 million.

“We had to raise the salary of an E.A. Zahra Clark is the head of Tiger Recruitment’s MENA region.

Many expats fled Dubai to escape the pandemic. With so many wealthy families moving to Dubai, recruiters have to offer huge incentives to attract investment professionals to return to the Emirate.

Kohyar estimates that 20 billionaires have purchased property in Dubai in the past year. Luxhabitat Sotheby’s International Realty has experienced a 30% increase in business over last year.

The volume of property sales in Dubai rose by 136.5% between August and the previous year, according to the Dubai Land Department. Due to the sale in Dubai Hills Grove of several Dh100 million ($27 million) villas, villa sales increased 124%. “Normally, we only do one to two Dh 100million ($27 million) deals per year. Kohyar says that this year, nine have already been completed.

Kohyar says that while booms in real estate have happened before, this time it is different. “People are now buying luxury properties to live in with their families.

He says they are in a hurry. Buyers don’t wait for developments to be completed. They must be available now. The rich suddenly have to be in a hurry.

Another thing that’s happening in Dubai is that people are coming from faraway places. Kohyar claims that most of his clients come from Europe, including the U.K, Switzerland, and Germany. Clark claims that most of the super-rich who set up family offices in Dubai are from the U.S. or U.K. Others say there is an increased interest from Singapore and Hong Kong.

Many were impressed by the manner Dubai dealt with the pandemic. P.C.R. quickly distributed vaccines to Dubai’s three-million residents. The tests are inexpensive and readily available. There was no lockdown in March or April 2020. “We are busier than ever before Covid. Clark says that this will continue as long as the U.S., U.K., and Europe can’t resolve the Covid situation.

In reality, however, the pandemic struck Dubai hard. As jobs became scarce, prices rose and people worried about becoming stranded abroad, thousands of skilled expats fled to their homeland.

The collapse of Dubai’s economy was suddenly apparent to its rulers. The expats brought wealth, entertainment and businesses with them. They are the reason Dubai’s talented and entrepreneurial youth may not follow them overseas.

The U.A.E. was created to counter this brain drain. The government began offering “golden visas” for high-achieving individuals. In 2019, the 10-year residency visa was established. Since then, it has been given to high-achieving students, entrepreneurs and actors who have won awards.

45 students who scored over 95% on their exams received golden visas in July. Raghad Muaiyad Al Nada School in Dubai was one of them. She told Khaleej News, “This is an amazing opportunity for me and my parents and brothers.”

The U.A.E. made 100,000 golden visas available to computer coders in the same month. The U.A.E. made available 100,000 visas to computer coders. Dubai, having lost to Silicon Valley, Israel, and Europe, now seeks to be a tech hub. It has set a goal to establish 1,000 digital companies in the next five years.

The U.A.E. also provides computer coders and students with assistance. Actors have also been granted golden visas by the U.A.E. Yasmin Abdelaziz was a well-known Egyptian actress who was granted a golden visa in July. She joins a trio of Lebanese pop stars-Najwa Karm, Marwan Khhoury, and Ragheb Alama, who have all been issued the visa.

Dubai is more appealing to the wealthy because of all this. They can also get a golden visa for Dh 10million ($2.7 million). They can also bring their family offices along thanks to a new law (Decree Law 19) that was introduced in February.

Perhaps the best thing about U.A.E. The absence of income tax is perhaps the most appealing thing about U.A.E. Dubai is suddenly more appealing than other countries, especially the U.S.A. and U.K. who are proposing wealth taxes to help pay for the pandemic.

Kohyar says that if they move their family or businesses here, they will be more likely to stay.

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