The United Arab Emirates (UAE) has become one of the top three destinations for African millionaires during the previous decade.
Almost 18,500 HNWIs departed Africa between 2012 and 2022, with majority moving to the UK, the US, and the UAE, as reported in the Africa Wealth Report 2023 by New World Wealth and Henley & Partners.
In the wake of the pandemic, the United Arab Emirates, and Dubai in particular, have emerged as formidable rivals in the race to entice wealthy individuals from all over the world. According to the Henley Global Citizens Report from last year, the United Arab Emirates (UAE) will attract the highest number of millionaires of any country in the world in 2022, with an estimated 4,000 joining the country. This number exceeds that of much larger nations like Australia, Singapore, Israel, Switzerland, the United States of America, Canada, the United Kingdom, India, and others.
UAE’s competitive tax rates are a major attraction for investors
According to the Africa Wealth Report 2023, the low and extremely competitive tax rates that help set up new firms in the UAE are one of the key causes encouraging African millionaires to come to the UAE.
The United Arab Emirates boasts one of the world’s lowest tax rates and no individual income tax. Beginning on June 1, 2023, the United Arab Emirates will have a corporate earnings tax of nine percent, making it one of the world’s lowest.
As a result, many African businesses have established operations in Dubai. More than 1,600 new African member companies joined the Dubai Chamber from October 2021 to June 2022, bringing the total number of Chamber members to 26,420, an increase of 6.5%.
As an additional means of promoting Dubai and the United Arab Emirates, the Dubai World Trade Centre has created Gitex Africa.
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