Some 108,000 HNWI migrated from their home countries in 2018, an increase from 95,000 the previous year, with Australia taking the the number one spot as the favourite destination for migrating millionaires.
USA, Canada, Switzerland, UAE, the Caribbean, New Zealand, Singapore, Israel, Portugal, Greece, Spain, Monaco, Malta, Mauritius, Latvia and Hong Kong were also popular destinations for migrating HNWIs in 2018.
Australia is the most popular destination in the world for migrating millionaires, welcoming some 12,000 high net worth individuals, HNWIs - defined as those with $1m or more - in the past year, according to the Global Wealth Migration Review 2019 published by AfrAsia Bank and research partner New World Wealth. The US came second with a net inflow of 10,000 HNWIs, while Canada was third with 4,000.
Dubai is the top financial centre in the Middle East. It is also one of the safest cities in the region and a popular destination for migrating HNWIs and wealthy expats"
The report looks at wealth and wealth migration trends over the past 10 years, encompassing 90 countries and 150 cities, including all major markets.
The most popular cities for migrating HNWIs in 2018 include Dubai, Los Angeles, Miami, New York and San Francisco.
Singapore, which welcomed 1,000 rich in 2018, was the most popular country in Asia among migrating millionaires, placing the city-state tied for seventh on the list. Australia beat its closest rival, the United States, for the fourth year running.
The report suggested that it could be due to three factors: safety, lack of inheritance taxes, and problems relating to healthcare in the US.
The Lion City was the only Far East country on the list. With already 222,300 wealthy residentsit has the fifth-largest concentration of HNWIs in 2018. New York City took first place, with 377,800 resident HNWIs.
Approximately 2,000 HNWIs streamed into the UAE in 2018, delivering a investment boost to the local economy. The majority of them settled in Dubai.
The number of affluent migrants in the UAE has risen by 2% in 2018, compared to the previous year, according to the report.
"Dubai is the top financial centre in the Middle East. It is also one of the safest cities in the region and a popular destination for migrating HNWIs and wealthy expats," the report noted.
With hundreds of millionaires streaming into Dubai every year, the value of the total private wealth in the city is set to grow further.
The country seeing the biggest outflow of wealthy people was China, which lost 15,000 of its HNWIs in 2018; second was Russia with 7,000 emigrants; and third came India with 5,000. Large numbers also left Turkey and France.
|Country||Net Outflow of NHWIs (2018)||% of HNWIs lost|
Chart 2: top countries by HNWI outflows
The UK has historically been one of the biggest recipients of migrating HNWIs over the past 30 years. However, in the past two years the UK has lost approximately 7,000 HNWIs; 4,000 in 2017 and 3,000 in 2018. Brexit and new taxes on non-doms have been suggested as motivating factors in this downward trend.
According to the report, global wealth has increased by some 26% in the past 10 years, from $161trn in 2008 to $204trn in 2018, in particular, due to wealth accumulation in Asia.
Seven of the top 10 best-performing wealth markets worldwide from 2008 to 2018 are located in Asia, with China leading the way with 130% wealth growth during this period. The rest of the top 10 includes Mauritius, Ethiopia, India, Sri Lanka, Indonesia, Vietnam, Kenya, Philippines, and Korea.
According to the report, there are approximately 14 million HNWIs in the world. The report also shows that there are 560000 multi-millionaires that each have net assets worth $10m or more, there are around 25000 centi-millionaires in the world each with net assets worth $100m or more and there are 2140 billionaires in the world each with net assets worth $1bn or more.
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